Starbucks Prioritizes Customer Experience, Implements Code of Conduct

Starbucks CEO Brian Niccol has announced the implementation of a Coffeehouse Code of Conduct, prioritizing the safety and welcoming experience of paying customers. The move reverses the previous open-door policy that allowed anyone to enter the stores.

Niccol cited feedback from both customers and employees as the driving force behind the change. "Our first priority is our paying customers," he stated. The company plans to implement additional security measures if necessary to support this shift.

The move aligns with Starbucks' strategy to create a premium store experience, differentiating itself from drive-through coffee chains. Niccol believes the combination of quality coffee, exceptional service, and the unique third-place experience offered by Starbucks sets it apart from competitors.

Despite the company's ambitious expansion plans, Niccol acknowledged the need to close underperforming stores, particularly in underpenetrated markets such as Texas and the Southeast. Sharon Zackfia of William Blair anticipates a slowdown in restaurant development in fiscal 2025, as Starbucks focuses on redesigns and renovations. New US locations have consistently demonstrated strong performance, contributing significantly to incremental sales.