Starbucks is aiming to recapture some of its original, community-driven spirit by bringing back "hundreds of thousands" of seats to its North American stores. CEO Brian Niccol, who recently took the helm after leaving Chipotle, sees this as a key step in reversing the coffee giant's shift toward a mostly transactional, grab-and-go model. Speaking Tuesday at the Fast Company Innovation Festival, Niccol described his vision of Starbucks as a "third place," a comfortable spot between home and work that's more than just a stop for caffeine, per Fast Company.
Niccol's assessment comes after a period of flat sales, with transactions peaking in 2019 and little growth since, despite annual revenues holding steady at $36 billion. In recent years, heavy investment in mobile ordering led to crowded waiting areas and fewer opportunities for customers to linger. After visiting multiple locations, Niccol vowed to fix what he described as a design issue, aiming to make the in-cafe experience enjoyable again.
The "Back to Starbucks" initiative will include 1,000 redesigned company-operated cafes, a renewed focus on in-store interactions, and menu updates targeting younger customers. Niccol also plans to update the pastry selection and reintroduce ceramic mugs. The influx of new seating—far more than the 30,000 originally planned—will feature a modern take on the brand's signature purple chairs. Niccol sees the heart of Starbucks in the relationships between baristas and regulars, saying, "There are these examples where people walk in and the barista knows them so well that they've already made their drink before they've gotten to the [point of sale]. I wish every single one of our transactions was that intimate, that personal." CNBC offers a peek at one cafe's recent renovation.