Starbucks Shows New Store Designs, Hoping To Evoke Feeling Of Third Place Once Again (For A Price) – CoffeeTalk

Starbucks CEO Brian Niccol has revealed a new store design to revive the “third place” experience, which is a concept that Starbucks has long embraced. The new store model includes expanded seating options for work, socialization, and relaxation, more power outlets for remote workers, students, and professionals, and an improved ambiance to make stores feel more inviting and community-oriented. The layout includes dedicated areas for mobile pickup, new risers and pickup shelves, abundant food displays, and a redesigned espresso bar to add a sense of theater to the coffee ordering experience.

The new design is part of Niccol’s “Back to Starbucks” plan, which is not about reverting to the past but reinforcing the brand’s core values and bettering the guest and employee experience. The first part involves reintroducing Starbucks to the world by shifting away from discounts in favor of highlighting coffee quality and community, simplifying the menu, and upgrading the customer experience by cutting wait times to four minutes, adding 3,000 labor hours in stores nationwide, testing a more efficient staffing model, and bringing structure to mobile ordering.

To create a coffee house atmosphere, Starbucks reintroduced condiment bars, ceramic and glass mugs for in-store guests, and handwritten cup messages. The company also changed its code of conduct policy so that guests must place an order to stay in the dining room or use the bathroom. Starbucks is also investing in employees’ well-being by doubled paid parental leave for eligible U.S. workers and committed to promoting from within for 90% of retail leadership roles in the next three years.

While Starbucks’ financial results remain below expectations, progress is evident. Starbucks’ U.S. quick-service share recovered in Q1 following two quarters of declines, despite reducing the frequency of discount-driven offers. The brand saw a shift in sales mix toward coffee and espresso-based beverages, which over-delivered and compensated for lower-than-expected performance across holiday promotions. Same-store sales declined 4% in North America and the U.S., but improved over the course of three months.

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