Starbucks Outlaws Lounging Without Buying as Sales Slip

The days of hanging out at Starbucks without purchasing anything are apparently over.

Beginning Monday (Jan. 27), the coffee chain is rolling out new policies that define customers as people who buy beverages or food. People who lounge without making purchases could be asked to leave, the Financial Times (FT) reported.

The report notes the urgency behind this decision, as Starbucks’ North American stores saw 5% fewer transactions last year, its first yearly decline since the COVID pandemic. When the company issues its quarterly earnings this week, same-store sales are expected to be down 4.8%, the report adds, citing analysts polled by Visible Alpha.

It’s part of the company’s “Back to Starbucks” effort, announced last year and designed to boost the customer experience by prioritizing quality coffee.

During an earnings call in October, CEO Brian Niccol underlined the importance of reestablishing Starbucks as a community gathering place and simplifying the menu to draw in more paying customers.

“I believe that our problems are very fixable and that we have significant strengths to build on,” Niccol said. “I’ve spent my career understanding, stewarding and building brands, and it’s clear the Starbucks brand is strong and enduring.”

“When we stay true to our core identity and focus on delivering a great partner and customer experience, our customers come — and importantly, they come back,” he added.

Starbucks and many other restaurant chains saw sales decline for much of last year. And research by PYMNTS Intelligence showed consumers changing their spending habits during 2024 in response to persistent inflation.

“Roughly a third of respondents pulled back regardless of whether they were comfortably meeting monthly expenses or struggling to afford goods, services and shelter,” PYMNTS wrote last week.

According to the FT, the new policy marks a reversal of the rule Starbucks established in 2018, saying any visitor was a customer regardless of whether they purchased anything. That followed a controversy at a Philadelphia Starbucks over the arrest of two Black men who had asked to use the restroom before making any purchases.

This new rule change is leading to controversies of its own, the report added, with advocates for unhoused people saying Starbucks can provide a “buffer” when shelters empty in the early mornings and before other locations open.