The end of the era of shared space at Starbucks Corporation (SBUX.US)! Unpaid customers may not stay in the cafe or use the restroom.

date
14/01/2025
avatar
GMT Eight
Global coffee beverage giant Starbucks Corporation (SBUX.US) has revoked a long-standing key policy that previously allowed anyone (including those who had not purchased any Starbucks Corporation products) to use its coffee shops, as well as the large patio and restrooms of Starbucks Corporation, until the policy was revoked on Monday this week. The company has always allowed anyone to use its shared Starbucks Corporation space since 2018. In an email statement, Starbucks Corporation said that as part of its plan to make its US stores more appealing and attract high-end consumers, the company has released a new code of conduct. Starbucks Corporation spokesperson Jaci Anderson stated that implementing such a rule "is something most retail establishments across the US have and it's a reasonable way to ensure we are giving priority to those who want to sit down and enjoy our coffee or need to use the restroom during their visit who have bought something." The guidelines also include provisions prohibiting begging and disruptive behavior, and will come into effect on January 27, with the guidelines displayed throughout Starbucks Corporation cafs. Starbucks Corporation stated that baristas will receive training on how to enforce these guidelines and may request that individuals who violate the rules leave. This was not previously allowed. If needed, Starbucks Corporation employees are authorized to seek assistance from local law enforcement. According to the company, customers can now use the restroom or connect to Starbucks Corporation's free WiFi before going to the cash register to pay. The new rules mark a significant adjustment to a policy introduced in 2018 by Starbucks Corporation that allowed anyone to linger or stay in Starbucks Corporation cafs. Prior to the policy, an incident occurred at a Starbucks Corporation caf in Philadelphia, where a manager called the police and had two black men who were waiting but had not ordered any food or drinks arrested. On Monday, Starbucks Corporation's stock rose 1.4% to $93.51. So far this month, the stock has risen by 2.5%, outperforming the S&P 500 index. However, due to a significant decline in sales for three consecutive quarters and the suspension of performance guidance for the 2025 fiscal year, the stock price fell by 3% in 2024, significantly underperforming the S&P 500 index. Rising coffee futures prices have also been a challenge for Starbucks Corporation since 2024, with Arabica coffee futures prices reaching a 47-year high in 2024, rising nearly 70% for the full year. By 2025, coffee prices may rise further due to a supply shortage caused by droughts and excessive rainfall in major coffee-producing countries like Brazil. Additionally, according to the latest announcement, the Seattle-based coffee beverage giant is reintroducing ceramic mugs and expanding its free refill policy. According to a memo sent to employees, as long as the original order is served in a reusable clean cup or ceramic or glass cup, Starbucks Corporation will offer refill services to non-reward members. This policy applies to hot coffee and iced coffee. The same rule applies to reward members, who were previously the only group eligible for free refills. In a letter to employees from the North American region president of the coffee beverage giant, Sarah Trillin, the company will hold a three-hour training session to train baristas on the new service standards and operational expectations. Starbucks Corporation also promises to reinstate the sugar and milk bar services that were suspended during the global COVID-19 pandemic.

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