Inside Starbucks’ bold plan to reclaim its magic

After roughly 15 months of the Covid pandemic lockdowns, I sat with my laptop outside a Starbucks in West Palm Beach. It seemed like a little thing, but when I realized how long I had been surviving off of drive-thru and pickup, I started to cry.

Writing at Starbucks, or sometimes local coffee chains, had been part of my routine for years. It was something I did multiple times a week, often enough that I knew the staff and many of the regulars.

But once pandemic restrictions were lifted, despite my emotional response that day, I cut far back on how often I used Starbucks and its rivals as a home away from home.

That's something new Starbucks CEO Brian Niccol wants to change. Niccol envisions Starbucks returning to its core, once again becoming a "third place" in addition to work and home.

CEO wants to go "back to Starbucks"

Niccol began his tenure at Starbucks on a listening tour, visiting stores, speaking to customers and employees.

"In each conversation, two truths emerged: First, Starbucks is a beloved brand with wonderful people. We are woven into the fabric of people’s lives and the communities we serve. Second, there’s a shared sense that we have drifted from our core. We have an opportunity to make the store experience better for our partners and, in turn, for our customers," he said in an open letter to employees.

He touched on what the chain's store should be in the letter.

"Our stores have always been more than a place to get a drink. They’ve been a gathering space, a community center where conversations are sparked, friendships form, and everyone is greeted by a welcoming barista. A visit to Starbucks is about connection and joy, and of course great coffee," he added.

And, while he did not use the term "third place" in the letter, those words came up when the new CEO welcomed Starbucks founder and former CEO Howard Schultz on stage at the 2025 Starbucks Leadership Experience.

Howard Schultz backs Brian Niccol

Schultz, who reclaimed the CEO chair twice after giving it up, has not always been openly supportive of his replacements. In this case, he seems very excited about Niccol, who used to run Chipotle.

“When I heard you speak for the first time about Back to Starbucks, I did a cartwheel in my living room!” said Schultz. “It’s short, it’s to the point, and it’s exactly the tip of the spear of who we should be, and who we are. And we are above all else, a coffee company.” 

Schultz also made it clear that the idea of a third place remained important to him.

“The third place is not something we need to reinvent — it’s who we are,” Schultz said. “People all over the world are longing for human connection… We are a company that is steeped in humanity. We are steeped in human connection, because of all of you and the people you represent.” 

Starbucks is making changes

During recent visits, the changes feel subtle but intentional. My local store has always been friendly, but the effort to make the café feel welcoming now seems more deliberate, with baristas engaging customers who aren’t just passing through to grab a mobile order.

I’ve also noticed that the return of the self-serve milk and condiment station has changed how people use the space. Instead of immediately leaving, customers linger, adjust their drinks, and strike up short conversations.

On multiple visits, I heard tables chatting with each other, something that largely disappeared during the post-Covid period. The overall mood feels less transactional and more like a neighborhood coffee shop than a corporate chain.

"Under Niccol, Starbucks has brought back its tradition of baristas doodling on cups in Sharpie pens; reinstated self-serve milk and sugar stations; cut 30% of the food and drink menu; ended its open-bathroom policy for non-paying customers; and laid off 1,100 corporate employees in February," CNN reported.

The chain is also reversing some changes it made during the Covid pandemic. In those days, even when dining rooms were open, seating was cut, and stores were optimized for takeout and delivery.

"The chain is also trying to win back customers looking to sit down for a cup of coffee by renovating 1,000 stores — 10% of its company-owned US locations — with chairs, couches, tables and power outlets over the next year. Starbucks aims to make changes to all of its US stores within the next three years," the news site added.

Early results have been positive

Under Niccol, Starbucks reported its first positive comparable-store results in seven quarters, according to its fourth-quarter earnings release.

• Global comparable store sales increased 1%, primarily driven by a 1% increase in comparable transactions.
• North America and U.S. comparable store sales were flat, driven by a 1% increase in average ticket, offset by a 1% decline in comparable transactions.
• International comparable store sales increased 3%, driven by a 6% increase in comparable transactions, partially offset by a 3% decline in average ticket.
• China comparable store sales increased 2%, driven by a 9% increase in comparable transactions, partially offset by a 7% decline in average ticket.

Although a 1% increase may seem modest, comparable-store sales growth is a key indicator that customer traffic is stabilizing. This is critical for a turnaround built on getting people to stay longer, not just order more.

Analysts like the changes, albeit not the pace of them.

“We acknowledge the turnaround has taken longer than we expected, now likely moving into early-to-mid 2026,” BTIG analyst Peter Saleh said in a recent email report. “We think once these start working, the impact will be significant,” Saleh said.

More Restaurants 

• Taco Bell and KFC work on simplifying their restaurants
• Chick-fil-A making major change to 425 restaurants nationwide
• Bankrupt beer and pizza restaurant chain closes locations
• Restaurant chain famed for rude waiters closes multiple locations

Goldman Sachs analysts shared a similar analysis.

"The investment firm notes the promising clarity surrounding Starbucks' turnaround plan, particularly with the expedited implementation of the Green Apron service model across U.S. locations. However, Goldman Sachs advises caution, suggesting that these strategic initiatives may take time to yield significant profit improvements," GuruFocus shared.

Related: 52-year-old restaurant closes as owners make heartfelt plea

Starbucks can recapture its mojo

As a nearly daily Starbucks customer, it's fair to say I have changed my habits a little bit since Niccol began making changes.

My local Starbucks changed its dining room, adding more small tables. In a recent visit on a long driving trip, I had intended to just order, use the restroom, and leave, but ended up working for nearly three hours.

I've always found baristas friendly and don't want to make anyone handwrite a meaningless platitude on my cup, but the overall plan remains strong, and the execution has been good.

Related: Iconic Italian restaurant chain shut down over 200 locations