Starbucks Revamps Locations to Create a More Inviting Atmosphere

Starbucks CEO Brian Niccol is set to transform the struggling coffee chain by redesigning its locations to be more inviting.

The renovation plans include adding comfortable seating, accessible power outlets, and softer lighting, aiming to encourage customers to linger, which is part of Niccol’s ambitious turnaround strategy.

“We’re creating comfortable seats where people want to come. It’s not just a simple grab-and-go concept,” said Mike Grams, Chief Operating Officer at Starbucks, in an interview with CNN last Friday in Bridgehampton.

“Perhaps over the past few years, we’ve lost a bit of the essence that made us special.”

This revamped location, one of four redesigned in the trendy Hamptons, showcases deep green walls and a mix of light and dark wood. Decorative items like plant bowls and coffee beans, along with an open espresso bar and a digital menu board, add to the atmosphere.

As customers relaxed on cushioned chairs or orange booths, others worked on laptops at small tables, creating a cozy vibe. It marks a significant shift from the previous approach of hastening customers out the door.

In recent years, about 30,000 seats have been removed from various locations, replaced by wooden stools. Additionally, many electric outlets were covered to discourage laptop users, and takeout counters were introduced.

However, this strategy hasn’t yielded positive results. Sales at some locations have dropped for five consecutive quarters as customers opt for local coffee shops and smaller chains.

Niccol, who earned praise for his success with Chipotle and Taco Bell, was brought in last year to help rejuvenate the Seattle-based firm.

He plans to remodel around 1,000 Starbucks stores, roughly 10% of company-owned locations in the U.S., over the next year. While each redesign will differ, they will all feature enhanced lighting, updated color schemes, and improved acoustics, according to Meredith Sandland, Starbucks’ Chief Coffee House Development Officer.

Sandland emphasized that the redesigned spaces will cater to a range of customers, from those holding meetings to those simply wanting to read or work.

Since taking charge last September, Niccol has reinstated a self-service seasoning station and streamlined the menu by cutting about 30% of items.

He also oversaw the purchase of around 200,000 Sharpie Pens, allowing baristas to add personal touches to cups, and introduced free refills for ceramic mugs for customers who choose to stay.

The overarching goal is to restore Starbucks as the beloved “3rd place” where people feel comfortable spending time between work and home.

“I envision the ‘3rd place’ as somewhere warm and welcoming, like a hotel lobby, rather than a fast-food restaurant,” Sandland explained.

Starbucks has been increasing its drive-thru locations and focusing on mobile orders, which have contributed significantly to sales. However, it has also retained some nostalgic elements from the past, like the soft purple armchairs that were retired in 2008 due to cleanliness issues.

“You might see something similar returning to our stores,” Sandland hinted. “Is it purple? I’m not sure yet, but it’s something to look forward to.”