Starbucks aims to boost sales with expanded seating options and power outlets to charge devices, making stores more inviting for customers, as reported by Bloomberg.
The coffee chain is testing new store designs in the US to reverse a sales slump.
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Starbucks believes customers will spend more time in its cafés if they are comfortably seated and can charge their phones and laptops.
The initiative also includes separating in-store and mobile ordering, with some locations featuring pickup shelves and redesigned espresso bars.
In the first quarter (Q1) of the fiscal year 2025 (FY25), Starbucks reported net revenue of $9.39bn, down from $9.42bn in the same quarter of the previous year.
Net earnings for the quarter ended 29 December 2024 were $780.8m, a 23.8% decline from $1.02bn a year earlier.
North America segment net revenues decreased 1% during Q1 FY24 to $7.1bn in Q1 FY25, primarily due to a 4% decline in comparable store sales, driven by an 8% decline in comparable transactions.
Starbucks CEO Brian Niccol, who joined in September 2024, is leading this transformation.
During the shareholders meeting on 12 March 2025, Niccol said: “Imagine coffeehouses that are comfortable and warm with expanded seating options, power outlets and abundant food displays.”
He aims to shift the company’s focus from prioritising to-go services to creating a more inviting atmosphere.
This change comes after a period during which less seating was available in stores, impacting customer experience.
Niccol recently urged corporate employees to take more accountability and return to office-based work following job cuts aimed at revitalising operations.
At a recent internal forum in Seattle, he emphasised efficiency in product delivery, decision-making and mutual responsibility.
The “Back to Starbucks” plan aims to address declining sales by becoming a “more versatile and adaptable company”.
This strategy led to the dismissal of 1,100 corporate employees and the elimination of hundreds of unfilled positions.
Niccol clarified that these measures focus on enhancing efficiency rather than cost savings, with no additional redundancies planned.
He believes that office-based work will boost performance.
