Starbucks’ effort to reestablish itself as a coffeehouse is reportedly bearing fruit.
In the last three weeks, the share of U.S. customers who have chosen to remain in the cafes and enjoy their beverages in ceramic mugs and glasses has risen more than threefold, Axios reported Friday (March 21), citing figures shared by the company.
The uptick in what the company calls “sit and stay” visits come as Starbucks has been trying to reverse a drop in foot traffic and dwindling sales. By purchasing a beverage in a mug or glass, customers can get a free refill, which the Axios report says is encouraging some shoppers to hang around.
Tressie Lieberman, the company’s chief brand officer, told the news outlet that Starbucks is “leaning into our coffee culture.”
“We’re reestablishing Starbucks as the community coffeehouse and reintroducing Starbucks to the world,” Lieberman added.
She said the company is also investing in marketing with commercials on TV and streaming platforms to “evoke the feeling that ‘I want to go to Starbucks.’”
According to the report, Starbucks told Axios it also plans to bring back “more comfortable seating and spaces to ensure our stores are a place where customers want to sit, work, and meet” and “more separation between the cafe and mobile order experience.”
The report noted that Starbucks CEO Brian Niccol last week told shareholders he was “pleased at the early reaction to changes we’ve made from both customers and partners.”
The company is in the middle of a larger transformation, updating its branding to “Starbucks Coffee Company” and refocusing on its core identity via its “Back to Starbucks” program. That initiative also includes a recent rule change: People who hang out at Starbucks without buying anything will be asked to leave.
As PYMNTS reported in January, the Back to Starbucks is designed to improve the customer experience by prioritizing coffee quality and supporting baristas, while also simplifying the menu and positioning Starbucks as a community gathering space.
“Starbucks has runway … with analysts still seeing strength and opportunity in the brand,” Scott Stuart, CEO of the Turnaround Management Association, told PYMNTS at the time.
“While it’s too early to say on the timing of its turnaround, the challenges it faces are certainly concerning, but not yet alarming to a point of urgency.”
The company’s efforts to retain customers come as consumers are eating out less frequently, with recent census data showing that food services and drinking places in February experienced their third month in a row without growth.
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