Starbucks Making Major Changes to Stores in New York, California
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Starbucks has begun rolling out an extensive redesign of its stores in New York and Southern California under the leadership of CEO Brian Niccol, as part of the company's "Back to Starbucks" plan.
The chain is introducing premium features across these locations, including lounge-style seating, warmer lighting, and locally inspired wall art, in an effort to cultivate a traditional coffeehouse feel and encourage customers to spend more time in stores.
Newsweek has contacted Starbucks outside of regular working hours via email for comment.
Why It Matters
The major changes come after Starbucks took a hit when its baristas went on strike before Christmas, waiting times for orders grew longer, and its Q4 earnings report for the last fiscal year showed a 7 percent decline in global sales.
Since stepping in as CEO in September 2024, Niccol launched the "Back to Starbucks" initiative to try to encourage customers to come back to the stores.
When he was appointed as the new leader of the major chain, Starbucks' shares leapt up 18 percent after two consecutive quarters of sale slumps, Fortune reported, suggesting there are lot of expectations weighing on Niccol's shoulders to bring the company's sales back up to speed.
What To Know
The first remodeled locations, including stores in Bridgehampton and East Hampton, New York, now showcase cozy chairs, hardwood floors, and artwork on the walls that capture the spirit of the areas' local communities.
Starbucks has also brought back ceramic mugs for some in-store orders and reintroduced the self-service condiment bar. Baristas were also instructed to be welcoming to customers and leave hand-written notes on cups.
The redesigns are part of a comprehensive strategy to reverse the downward slope in sales by enhancing the customer experience and reestablishing Starbucks as a welcoming "third place," a space of respite over coffee away from home and work—a vision first championed by former CEO Howard Schultz.
Alongside the aesthetic updates, Starbucks has focused on operational changes such as streamlining its food and beverage menu, by reducing some options for customizations, and introducing a new order sequencing algorithm to reduce wait times.
The company said that the measures enabled three-quarters of orders at test locations to arrive in under 4 minutes during peak hours, Fortune reported.
In June, Starbucks also hosted over 14,000 coffeehouse leaders from across North America at its Leadership Experience 2025 in Las Vegas in June, as part of the initiative. At the event, leaders had the chance to engage in workshops, connect and network, and hear directly from company leaders.
File photo. The Starbucks logo is seen.
File photo. The Starbucks logo is seen.
Efren Landaos/Sipa via AP
What People Are Saying
Starbucks' CEO Brian Niccol said in June: "'Getting 'Back to Starbucks' means refocusing on what has always set us apart — a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas. We are bringing together our coffeehouse leaders from across North America to celebrate, empower and equip them to accelerate our transformation.
"The coffeehouse experience defines the Starbucks brand, and these leaders and their teams bring that experience to life for millions of customers every day."
Starbucks' Chief Operating Officer (COO) Mike Grams said in June: "This isn't just a reset—it's a recommitment to who we are when we are at our best. We're making progress, have real momentum with our 'Back to Starbucks' plan and are on the right track to turn the business around.
"Our turnaround is rooted in listening—to partners and customers—and taking action on what we hear. We're listening and testing in the coffeehouse, and then applying our learnings to scale quickly and enhance the customer and partner experience."
What Happens Next?
Continued changes and refurbishments are expected in stores as part of the "Back to Starbucks" initiative.
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