Seattle, WA - Starbucks has reinstated a policy requiring customers to make a purchase before using seating or restrooms, a move reflecting broader efforts to revitalize its business amidst recent struggles.
The coffee giant, which saw a decline in revenues last year and a significant drop in share price from its mid-2021 peak, is facing stagnation after years of growth. The company has appointed its fourth CEO in less than three years as part of a strategy to reverse its fortunes.
Starbucks' expansion, which began in the 1970s and peaked with nearly 40,200 stores globally, has been challenged by increasing competition and changing consumer preferences. The new CEO, Brian Niccol, aims to restore the brand's reputation as a comfortable 'third place' for customers while simplifying the complex menu that has contributed to longer wait times.
Niccol's compensation package includes a $10 million signing bonus and potential earnings of up to $113 million over four years, reflecting the high stakes involved in revitalizing the iconic brand.