Starbucks is in trouble. After a year of declining sales, boycotts, and executive turnover, the coffee giant has brought in former Chipotle CEO Bryan Niccol to turn things around. The Wall Street Journal recently sat down with Niccol to discuss his strategy, and while some of his ideas seem logical—revamping mobile ordering, rethinking store layouts, and focusing on the coffeehouse vibe—he’s still missing the core issue.
Let’s take a step back. Close your eyes and imagine walking into any coffee shop. What do you see?
Most customers have a laptop, tablet, or phone in front of them, working away. Those who aren’t solo are likely having a business meeting, interviewing for a job, or catching up with a friend. These aren’t loud, disruptive people; they’re professionals, creatives, and students in a casual business setting.
This is Starbucks’ real customer base.
The Starbucks Identity Crisis
For decades, Starbucks built its reputation as the brand you brought back to the office. It wasn’t just about the coffee—it was about the experience, the familiarity, and the premium feel of walking into a meeting with that green-and-white cup in hand.
But somewhere along the way, Starbucks lost sight of this. Instead of focusing on the people who actually use their spaces, they’ve leaned too hard into mobile orders and drive-thru efficiency. While convenient, this shift has made the in-store experience feel transactional, chaotic, and uninspiring.
Niccol acknowledges some of these issues in the WSJ interview, particularly around store design. He points out that Starbucks has become more of a fulfillment center than a coffeehouse, with baristas struggling to balance in-person and mobile orders. He wants to improve the store layout and bring back that cozy coffeehouse vibe. That’s a step in the right direction, but it’s not enough.
How to Fix Starbucks
If I were leading Starbucks, here’s how I’d realign the brand with its actual customers:
1. Lean into the Business Crowd
Starbucks’ core demographic isn’t teenagers looking for sugar-filled Frappuccinos—it’s business professionals, freelancers, and remote workers.
✓ Design stores with smaller meeting spaces.
✓ Add better acoustic paneling and separators for privacy.
✓ Increase the number of electrical outlets.
✓ Introduce private conference rooms with glass walls so people can see business interactions while having the option to reserve spaces.
2. Implement a Two-Concept Program
Starbucks is trying to be everything to everyone, and it’s not working. The solution? Split the model into two distinct experiences:
Grab-and-Go/Drive-Thru: A streamlined, high-efficiency setup for customers who want quick coffee and nothing else.
Co-Working Space: A refined in-store experience designed for professionals, with designated seating areas for work, meetings, and collaboration.
3. Introduce Co-Working Membership Perks
Starbucks has the potential to redefine how business happens in coffee shops. They could offer a membership model with perks such as:
• The ability to reserve tables or private rooms.
• Discounts on bulk orders for meetings.
• Complimentary food tastings (similar to Costco’s sample model) to drive more food sales.
• Exclusive networking events for professionals.
The Real Problem: It’s Not About the Coffee
Starbucks—and most coffee shops, for that matter—still don’t seem to grasp why people are there. It’s not just about caffeine. It’s about an environment that fosters productivity, networking, and casual business interactions. We’ve been using coffee shops as remote offices since the rise of laptops and Wi-Fi, yet no major brand has fully capitalized on this behavior.
If Starbucks wants to turn things around, they need to stop treating their spaces like glorified fast-food joints and start designing them for the people who actually use them.
The question is: Will they listen?
What do you think? Would you pay for a Starbucks co-working membership? Have they lost touch with their core audience? I’d love to hear your thoughts.
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