Starbucks Implements Code of Conduct, Prioritizing Safety and Customer Experience
Starbucks CEO Brian Niccol has announced the implementation of a Coffeehouse Code of Conduct to enhance the customer experience and safety in stores. The new policy limits seating and restroom usage to paying customers, addressing feedback from both customers and employees.
Niccol emphasized the company's commitment to protecting employees and ensuring a supportive work environment. He stated that additional security would be deployed if necessary to facilitate the change.
The policy aligns with Starbucks' strategy of creating a premium store experience to differentiate it from drive-through competitors. Niccol believes the company's unique combination of high-quality coffee, skilled baristas, and comfortable ambiance cannot be replicated.
Starbucks projects potential for doubling its US locations to 34,000. However, Niccol acknowledged the need to close underperforming stores to optimize future growth. Under-penetrated markets in Texas and the southeast have been identified for expansion.
William Blair analyst Sharon Zackfia predicts a slowdown in restaurant development in fiscal 2025 as Starbucks focuses on remodels and capital allocation for turnaround efforts. Despite the potential impact on new store openings, Zackfia notes that new US locations tend to perform well, contributing to increased sales.