Big changes at Starbucks roll out Monday

Jordan Valinsky, CNN

NEW YORK (CNN) — Changes at Starbucks might remind customers of the chain of the old.

Beginning Monday, several policies are returning to Starbucks’ locations in United States and Canada — part of CEO Brian Niccol’s Herculean task of reversing sales and traffic declines at the struggling institution.

The chain is bringing back condiment bars after they were taken away during the height of the Covid-19 pandemic, and baristas will return to hand-writing customers’ names on their cups using Sharpies. Both changes are part of Starbucks’ plans to reboot the coffee house vibe that’s diminished in recent years.

The return of milk and sugar stations are a small step for Starbucks, but it represents something much bigger for the world’s largest coffee chain. It’s an acknowledgment that Starbucks went too far in overloading its baristas with endless ways to prepare drinks.

Niccol said in a previous earnings call that “our customers are asking for it and our baristas are saying it would help them deliver the speed of service that they want to provide.”

The return of personalizing cups is also a Niccol directive, who previously said the chain has to “track down” 200,000 Sharpies to make it happen. Starbucks released a new TV advertisement promoting the personal touches that comes with handwritten notes, as well as a slight name update to “Starbucks Coffee Company.” (The company didn’t immediately respond to CNN’s request for comment about the branding change.)

Also, free refills on some “for here” orders are expanding to all of its paying customers — a perk that was once reserved for members of its loyalty program. They will be served in ceramic mugs or a clean personal cup brought from home and are eligible for hot or iced coffee and tea orders.

In addition, Starbucks isn’t letting anyone hang out or use its restrooms without making a purchase.

The company said in a press release Monday it heard from customers and employees that “access to comfortable seating and a clean, safe environment is critical to getting back to the Starbucks they know and love” resulting in the company scrapping its open-door policy.

Other tweaks include a ban on panhandling, discrimination, consuming outside alcohol and vaping, according to the policy posted online. Employees have received training on the new rules.

Starbucks (SBUX) stock is up 7% over the past 12 months, but the company has posted three straight quarters of slumping sales and declining customer visits. Global sales at stores open at least a year fell 7% last quarter and the number of customer transactions sinking by 8%.

Investors will see how Niccol’s turnaround plan is doing after the bell on Tuesday, when the company releases its next earnings report.