Starbucks' new Coffeehouse Code of Conduct, set to be implemented on January 27, 2025, outlines specific guidelines for customer behavior and store usage. The code prohibits discrimination, harassment, violence, abusive language, outside alcohol consumption, smoking, vaping, drug use, and panhandling12. It also emphasizes that Starbucks' spaces, including cafes, patios, and restrooms, are reserved for paying customers and employees3.

To enforce this policy, Starbucks will provide training to its employees on handling non-compliant individuals. Staff members will have the authority to ask those violating the code to leave and, if necessary, seek assistance from local law enforcement2. This new approach aims to create a safer and more welcoming environment for paying customers while addressing the challenges that arose from the previous open-door policy45.

The reversal of Starbucks' open-door policy stems from challenges faced since its implementation in 2018. Originally introduced after two Black men were arrested at a Philadelphia location while waiting for a business meeting without making a purchase, the policy aimed to create a more inclusive environment12. However, over time, stores encountered issues such as:

• Safety concerns for employees and customers

• Disruptive behavior

• Drug use on premises

These problems culminated in the closure of 16 stores in 2022, including six each in Los Angeles and Seattle34. The policy change also addresses declining sales, with global store sales experiencing a 7% decrease in 20245. By prioritizing paying customers, Starbucks aims to enhance the overall cafe experience while mitigating safety risks and improving business performance.

Brian Niccol, CEO of Starbucks, has implemented a strategic shift in the company's approach to customer service and store management. The reversal of the open-door policy is part of a broader business strategy aimed at improving profitability and enhancing the overall customer experience. Niccol's approach focuses on prioritizing paying customers while addressing safety concerns that have arisen in recent years12.

Key elements of Niccol's strategy include:

• Implementing a new Coffeehouse Code of Conduct to create a safer environment3

• Introducing customer perks like free refills to incentivize purchases4

• Revamping store designs for improved comfort4

• Updating the menu to offer new options and attract more customers4

• Providing employee training on enforcing the new policy3

This strategic shift aims to balance the company's commitment to creating a welcoming environment with the need to address safety issues and improve business performance56. By focusing on paying customers, Niccol hopes to enhance the Starbucks experience while mitigating the challenges that arose from the previous open-door policy.

As part of Starbucks' new strategy to prioritize paying customers, the company is introducing several perks and benefits to enhance the cafe experience. One of the key offerings is free refills on brewed coffee and tea for Rewards members during the same store visit1. This incentive aims to encourage customers to make purchases and spend more time in Starbucks locations.

Additionally, Starbucks is revamping its store designs to improve comfort and create a more welcoming atmosphere for paying customers2. The company is also updating its menu to offer new options, potentially attracting a wider customer base and increasing sales3. These changes are part of CEO Brian Niccol's broader business strategy to balance customer satisfaction with improved profitability, while addressing the safety concerns that led to the reversal of the open-door policy4.