This month, Starbucks (SBUX) is rolling out a revamped code of conduct across its North American cafes, according to an exclusive Wall Street Journal report. The new code aims to enhance safety and improve the overall experience for both guests and staff. This policy shift marks the reversal of its nearly seven-year-old “open-to-all” approach, which allowed the general public to linger or use restrooms without making a purchase at its stores.
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Starting from January 27, SBUX’s new policy will limit access to restrooms, cafes, and patios to paying customers, their companions, and employees. Furthermore, SBUX’s baristas are expected to enforce these rules, asking non-compliant individuals to leave. Additionally, free water will now be restricted to customers and their guests.
What Are the Details of SBUX’s New Code of Conduct?
As part of the new code of conduct, SBUX cafes will display new signages explicitly banning harassment, violence, threatening language, smoking, outside alcohol, and panhandling in its stores. According to the report, Starbucks North America President Sara Trilling stated, “There is a need to reset expectations for how our spaces should be used, and who uses them.”
This change comes amid the coffeehouse chain’s efforts to reverse declining customer traffic and sales.
The 2018 open-to-all policy was initially introduced following an incident in Philadelphia where two men, denied restroom access and deemed trespassers for not making a purchase, were arrested. The event led to public outrage and prompted Starbucks to conduct racial-sensitivity training across all U.S. locations. While the policy aimed to foster inclusivity, it also raised concerns about maintaining order within cafes, voiced by both customers and employees.
SBUX Is Introducing More Changes
Starbucks is also introducing other customer-friendly changes, including reintroducing ceramic mugs and expanding free refills to non-rewards members who bring reusable cups. These adjustments reflect a broader effort by new SBUX CEO Brian Niccol to balance inclusivity with maintaining a comfortable environment in its stores.
Is Starbucks a Buy or Sell?
Analysts remain cautiously optimistic about SBUX stock, with a Moderate Buy consensus rating based on 11 Buys, six Holds, and three Sells. Over the past year, SBUX has increased by more than 3%, and the average SBUX price target of $105.17 implies an upside potential of 12.5% from current levels.
