No coffee, no bathroom: Starbucks ends open-door policy for non-payers

Starbucks CEO Brian Niccol has announced a slew of initiatives to regain loyalty, including simplifying the menu, freezing price hikes, removing extra charges for non-dairy milk, and 4-min delivery

Starbucks has announced a new policy requiring customers to make a purchase if they wish to stay in its cafes or use the bathrooms. This change, part of a broader Code of Conduct, will be implemented later this month across all Starbucks locations, according to a report by The New York Times, based on an email sent to company employees.

 

What is the new ‘no bathroom’ policy?

The new policy, which applies to the company’s cafes, patios, and bathrooms, mandates that customers must buy something to remain in the store or use the facilities. This shift marks a departure from the company’s previous open-access policy, introduced in 2018, which allowed anyone to use the cafes and bathrooms without making a purchase.

 

 

The new guidelines, which will be displayed in all stores, have also set expectations for customer behaviour. Prohibited actions include discrimination, harassment, smoking, and panhandling. Customers violating these rules will be asked to leave, and employees may involve law enforcement if necessary.

 

Why did Starbucks change its policy?

The updated Code of Conduct is intended to create a better environment for paying customers. “Implementing a Coffeehouse Code of Conduct is a practical step that helps us prioritise our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” a Starbucks spokesperson was quoted by The New York Times.

 

Store managers are being given 40 hours to prepare both staff and stores for the new policy, with implementation set to begin on January 27. Training sessions will also cover other new practices, such as asking customers if they want their drink for here or to go and offering unlimited free refills of hot or iced coffee to those who choose to stay.

 

Why change the policy now?

This move follows a 2022 statement by then-CEO Howard Schultz, indicating the company was reconsidering its open-bathroom policy. The previous policy had been introduced after a 2018 incident in Philadelphia where two Black men were arrested for sitting in a Starbucks without making a purchase, sparking widespread protests and calls for boycotts.

 

The policy shift is also part of Starbucks’ broader efforts to address declining sales, falling stock prices, and pressure from activist investors. The decision comes under the leadership of Brian Niccol, who assumed the role of CEO in September last year.

 

Policy changes under Brian Niccol

The US coffeehouse and roastery chain has been facing falling sales following consumer backlash and boycotts for its alleged links to Israel. The controversy was fuelled by a hoax letter falsely claiming that Starbucks funded the Israeli military, sparking widespread outrage. Starbucks has denied these allegations, stating that it does not support any government or military operation in West Asia.

 

Niccol himself was also criticised for his decision to commute nearly 1,000 miles from his home in Newport Beach, California, to Starbucks’ headquarters in Seattle via corporate jet, which critics argued went against Starbucks’ public commitment to environmental sustainability.

 

In light of these controversies, Starbucks’ latest earning reports showed a 6 per cent decline in comparable store sales in the US for the fourth quarter of 2024 compared to the previous year, which contributed to a 3 per cent decline in total revenues.

 

Starbucks unveils new strategy

The company’s financial challenges were evident in its latest earnings report. Comparable store sales in the US fell by 6 per cent in the fourth quarter of 2024 compared to the previous year, contributing to a 3 per cent decline in total revenues.

 

Niccol has promised a strategic overhaul to regain customer loyalty, announcing initiatives such as simplifying the menu, halting price increases, eliminating additional charges for non-dairy milk options, and ensuring order delivery within four minutes. The bathroom rule is the latest of a series of changes announced by Starbucks to bring customers and increase sales.