Starbucks to invest $1 billion in store renovations

Starbucks is investing $1 billion to renovate up to 9,000 company-operated stores in North America, aiming to transform them into inviting community spaces. The initiative, led by CEO Brian Niccol, seeks to revive the concept of the coffee shop as a ‘third place’ between home and work.

The redesign moves away from the minimalist, high-speed digital focus that became prevalent during the pandemic. New store features include leather armchairs, rugs, houseplants, hardcover books, and soft lighting. The company has already added approximately 25,000 new seats, with about 1,500 stores expected to have completed renovations by the end of September.

This strategy contrasts with competitors like Dutch Bros and Luckin Coffee, which focus on small-scale, quick-service models. By encouraging customers to linger longer, Starbucks hopes to increase visit frequency and average spend per customer. The plan is part of a broader turnaround effort that includes menu updates and improved customer service.