When I heard that coffee futures were reaching record highs, I got a bad case of the jitters. What would happen to my morning cup of Joe? How expensive could it get? Could I afford enough coffee to get me through the day?

I set out on a mission to find out.

Caffeine is the world's most popular drug, and coffee is the second-most-traded commodity after oil. On the futures market, traders buy coffee shipments months or years in advance — so price spikes can indicate what the rest of us might be paying down the road. After the pandemic began, prices for coffee futures rose, along with everything else. Accordingly, the consumer price index showed a steep increase in prices for store-bought coffee throughout 2022.

The problems didn't stop there. Thanks to severe droughts in 2023, major harvests in Brazil and Vietnam did badly, and water in the Panama Canal ran low, slowing ship traffic. Coffee futures started to tick up. Then, this past November, the commodity skyrocketed. Brazil, which exports the lion's share of the industry's preferred arabica beans, was beginning its growing season as the country's worst drought on record stretched into a second year. The clouds that usually shade coffee trees went missing. It would be the second bad harvest in a row. When the news hit, traders rushed to lock in arabica contracts, sending prices to all-time highs in December. Now prices are more than double their 2023 peak. Robusta beans, often used in instant coffee, hit their own record high this month.

Is this the end of coffee as we know it?

Climate experts say the underlying supply problems aren't going anywhere. Over the next two decades, bad harvests could become the norm, wild arabica coffee could move from thriving to endangered, and the land available for coffee cultivation is expected to shrink by half or more. While the coffee market has some flexibility to keep prices down, the long-term outlook for America's favorite beverage is bleak.

Coffee prices have already been going up for a few years. This past summer, brands like Folgers and Maxwell House raised their prices to pass on previous commodity increases to customers. Prices at my local café went up $0.35, so I started grinding my coffee at home. But, the addict that I am, I kept caffeinating. We all did.

This "inelastic demand" gives companies plenty of wiggle room to raise prices without worrying that people will stop buying coffee entirely. Both Folgers' parent company, J.M. Smucker, and Maxwell's parent company, Nestlé, reported higher coffee sales in the US last year despite raising consumer prices. But how much higher could prices get?

People who brew their coffee at home "are going to feel it," Jay Zagorsky, a professor at Boston University's Questrom School of Business, said. Since coffee beans are the only ingredient in a tub of Folgers, commodity price increases have a direct impact on grocery prices. Two decades ago, US Department of Agriculture economists looked at how commodity coffee price swings affected grocery shelves. They found that every $0.10 increase in futures led to an immediate $0.02 increase in prices for canisters of ground coffee. When commodity prices stayed high, the rest of the increase was passed on over the course of a year. According to consumer price index data from January, grocery coffee prices are already more than 3% higher than they were this time last year — instant coffee alone rose 7%. And Illy recently told Bloomberg that a 25% hike in prices in the next few months was not out of the question.

To counteract low supply, coffee retailers can fudge the quality: Robusta beans, which have a harsher flavor than arabica, can be mixed into blends, for example. Smucker recently told investors that for Folgers and its other coffee brands, the company had "the ability to flex formulas and still deliver the exact same consumer experience." In Indonesia, coffee shops are even mixing corn and rice with their coffee beans to stretch supplies. Some people have called this phenomenon of companies swapping in cheaper and lower-quality ingredients "flavorflation."

In cafés, Zagorsky said, commodity price swings have a less noticeable impact because most of the cost of a latte is not beans but labor. "If I was Starbucks, I'd worry much more about the unionization drive," he said. Massive companies such as Starbucks can manage the uncertainty around commodity prices by locking in multiyear contracts, playing the market, and hedging their bets. Last year, Starbucks actually came out ahead on coffee futures. The company expects that it has enough beans in storage or contracted to last through at least September. In December, its CEO said it would not raise its North American store menu prices before then — though it is removing some discounts.

Small roasters buy quality beans for more than the commodity price, but unlike Starbucks, they are more sensitive to price swings. Over an Americano (her) and an afternoon decaf (me), Daria Whalen, a coffee buyer for Ritual Coffee in San Francisco, admitted she's worried.

She opened a 12-ounce bag of coffee and poured a handful of beans onto the table. She pointed out slight variations in their size, explaining that these beans came from five different farms in a family co-op that pays coffee pickers Colombia's minimum wage. In an industry rife with shady labor practices, from child labor to human trafficking, buying from farms that pay decent wages is "one of the only things we have left," Whalen said.

This bag retails for $25, more than five times the price of Folgers at Costco. It's not clear how much more consumers would be willing to pay. Thankfully, the more flexible part of that price is the flavor: Coffee beans are rated on a point scale, like wine. To adapt to a temporary price spike, Whalen said, she will choose beans that taste good but fall lower on that scale.

The big question for Whalen is what happens when the climate crisis makes these supply shocks more frequent. "I have anxiety, like probably 85% of the population," Whalen said. "So on some days, you catch me at cup four of coffee and I'm like, 'There's not going to be any coffee anymore.'"

The climate crisis is already changing coffee growing. The past two years have been the hottest on record, bringing more evaporation and making droughts more severe. Coffee harvests have suffered. "In the last year, I saw scorched coffee beans. Coffee beans that were shriveled because of extreme heat," Whalen said. She has also seen warmer temperatures nurture a disease called coffee leaf rust, push back growing seasons, and affect shipping logistics.

A 2022 data synthesis projected double-digit losses over the next few decades in the land that's good for cultivating coffee beans. Some areas will become newly available for coffee, but that won't be nearly enough to balance the losses. Unfortunately for connoisseurs, that new land will likely work best for robusta beans, not arabica beans.

In response to the changes, more growers are drying beans rather than washing them to save on water. That changes flavor profiles, favoring fruity flavors like blueberries, Whalen said: "Sometimes you can get a ferment-y flavor that we would call a defect, but a lot of people really love that."

There's some adapting that farms and supply chains can do, but these efforts may still fall short if countries don't aggressively limit their fossil fuel emissions. One study found that under a business-as-usual scenario, even with best practices in place for coffee growing and logistics, Starbucks could see persistent bean shortages as early as 2029. In its most recent annual report, Starbucks acknowledged that the climate crisis could materially influence its financial performance, particularly if it meant the company couldn't meet demand.

"If you care about your coffee," Regina Rodrigues Rodrigues, a Brazilian climate scientist, said, "you can't support any policies that allow the continued burning of fossil fuels. That's the thing."

Environmental concerns also popped up the last time coffee futures spiked, back in 1977. One environmentalist called the price increase "merely another way of telling us that the 4 billion souls on this planet must compete for a steadily shrinking supply of farm produce." That prediction turned out to be wrong. Since the 1960s, agricultural production has grown every decade. In fact, so much new land has been used for coffee that prices haven't even kept pace with overall inflation — Zagorsky pointed out that, adjusted for inflation, 1 pound of coffee today is still cheaper than 1 pound in 1980.

Looking back, it's tempting to hope that the world is crying wolf, but adaptive measures came with downsides. Agriculture boomed thanks to the clearing of forests and an unprecedented application of fossil fuels, both in fertilizers and as fuel for transporting food along vast global supply chains. One study estimated that most of the growth in agricultural production since the 1970s has not been in line with safe environmental practices. Now, as the world warms, agricultural growth is starting to slow, even as demand for coffee continues to rise. We have not solved our coffee problems; we have merely postponed them.

Is sad, watery 1950s diner coffee our fate? Or will we find new ways to make coffee growing productive and resilient? Zagorsky said that the futures market predicts a price decrease. But beyond that, he doesn't want to make any predictions. "Economists are terrible at guessing the future," he said.

So I took my fears and uncertainty to someone willing to predict the future: Dr. Honeybrew, a coffee fortune teller in Manhattan's East Village. Honeybrew took a look at the coffee dregs in my tiny espresso cup to read the future of coffee itself.

"Everyone is plunging a straw down in the ground and just sucking up all of the richness, all of the life, all of the power from the soil," he said. "This is Mother Nature's way of saying, 'You know what? In return, I'm going to give you guys the shittiest beans.'"

Honeybrew foresaw the sting of change. The chaos of revolution. And a shared love of coffee that, against all odds, could bring Americans back together. Really, he said, coffee's future hinges on the leadership of Melania Trump: "If the Trump family brings to the White House a cocker spaniel," Honeybrew said, "it will be a very good omen."

What Honeybrew didn't speculate on is the future-shaping potential of the Trump administration's recent activity: how new tariffs might increase coffee prices, whether cuts at the National Weather Service could make it harder to predict harvests, and how leaving the Paris agreement could make the underlying problems worse. Without a major course correction, even a cocker spaniel in the Oval Office probably won't save coffee.

Meg Duff is a reporter covering climate change and the environment.

• Starbucks announced on Monday it would be laying off 1,100 corporate employees.
• The coffee chain also said it would be removing 13 menu items on March 4.
• Among the menu items disappearing are nine of the chain's Frappuccino drinks.

Starbucks is shaking up its menu, trimming down offerings as part of a wave of bigger changes at the company.

A Starbucks representative told Business Insider the chain is removing several items from its menu that are less popular with guests, can be difficult or time-consuming to make, or are similar to other items on the menu.

"As part of our plan to get back to Starbucks, we're simplifying our menu to focus on fewer, more popular items, executed with excellence," the chain told Business Insider in an email. "This will make way for innovation, help reduce wait times, improve quality and consistency, and align with our core identity as a coffee company."

Starbucks plans to reduce its menu by roughly 30% by September.

The changes will make room for new menu items, as well as Starbucks' soon-to-be-released spring menu, which includes its lavender beverages lineup and a new drink, the Iced Cherry Chai.

A majority of the cut menu items include its Frappuccino offerings, as well as its matcha lemonade and Honey Almondmilk Flat White.

The changes come amid other shakeups at the company as it seeks to turn around declining sales. On Monday, Brian Niccol, who joined Starbucks as its CEO in September, announced the company would lay off 1,100 corporate employees this week.

"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," Niccol said in a letter sent to employees. "Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration."

The company said that employees affected by the layoffs will be notified by midday Tuesday. Starbucks store employees will not be affected by the layoffs.

Here's the full list of Starbucks menu items being removed on March 4

1. Iced Matcha Lemonade
2. Espresso Frappuccino
3. Caffè Vanilla Frappuccino
4. White Chocolate Mocha Frappuccino
5. Java Chip Frappuccino
6. Chai Crème Frappuccino
7. Caramel Ribbon Crunch Crème Frappuccino
8. Double Chocolaty Chip Crème Frappuccino
9. Chocolate Cookie Crumble Crème Frappuccino
10. White Chocolate Crème Frappuccino
11. White Hot Chocolate
12. Royal English Breakfast Latte
13. Honey Almondmilk Flat White

• Starbucks said it would lay off 1,100 corporate employees this week.
• The coffee chain said it would notify affected employees by midday Tuesday.
• CEO Brian Niccol is trying to turn around results at the Seattle-based chain.

Starbucks said it would lay off 1,100 corporate employees this week and halt hiring for hundreds of open roles.

Employees whose jobs are being eliminated will hear from Starbucks by midday Tuesday, the company said.

"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," CEO Brian Niccol said in a letter on Monday announcing the layoffs. "Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration."

The company said employees at Starbucks' stores would not be affected by the layoffs.

Starbucks has 16,000 employees across its corporate offices and other areas of the business, such as roasting operations. It said that not all of those employees were on teams affected by the layoffs.

Starbucks has been seeking to rejuvenate sliding sales in the US, its main market. Niccol, who was named CEO in September, has said the company needs to prioritize the customer experience, including focusing more on baristas, whom the company calls "partners."

"I recognize the news is difficult," he said in the memo. "We believe it's a necessary change to position Starbucks for future success — and to ensure we deliver for our green apron partners and the customers they serve."

Starbucks has been making changes to its stores since Niccol joined the company.

Partners at stores are now encouraged to write notes to customers on their paper cups. Starbucks also rolled back its open-door policy and requires patrons to buy something in order to use the store's bathroom or get a cup of water.

Under Niccol, the company has also reduced the number of promotions it offers members of Starbucks' rewards program.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected] or via the encrypted messaging app Signal at 808-854-4501.

• Starbucks is mulling a change to how customers get coffee when they order through the chain's app.
• Customers have been asking to choose a specific pickup time, CEO Brian Niccol said.
• Mobile ordering is an area Niccol is looking at as Starbucks attempts a turnaround.

Starbucks might soon ask you to choose a time to pick up your morning cup of coffee.

CEO Brian Niccol told The Wall Street Journal that the chain was considering the change to its mobile ordering system to help customers and baristas.

Right now, Starbucks' mobile app gives customers a pickup time — sometimes as little as a few minutes — when they place an order. Niccol said that often doesn't reflect when the customer can actually stop by to get their drink, especially if they aren't near a store when they order.

"When you mobile order, you'll get a message that says that the beverage will be ready in three minutes," he told the Journal. "But you physically can't get there in three minutes."

That leads to a mismatch between "when the customer wants it and when we should be making it," the CEO said.

He added that some Starbucks customers had been asking to choose when they retrieve their order. "The number-one request is actually 'Let me pick what time I can come pick up my beverage,'" he said.

Starbucks' mobile ordering system has been a sore spot for customers and for the employees who make their drinks.

Some store employees, whom Starbucks refers to as "partners," told Business Insider last fall that their locations were often overwhelmed by the number of mobile orders. They said that led to long wait times for customers as the partners struggled to prepare drinks and catch up.

Workers told BI that promotions for members of Starbucks' rewards program, especially those offering customers a discount if they ordered several drinks at once, contributed to the problem. Under Niccol, Starbucks has reined in the number of promotions it offers to rewards members.

Niccol became Starbucks' CEO in September. Since then, he has detailed a turnaround plan for the coffee chain aimed at reversing sales declines.

Niccol said this month that Starbucks' mobile ordering system "chipped away" at the chain's "soul." He argued that many baristas were too busy preparing drinks to chat with customers and provide other personalized services that Niccol wants the chain to be known for.

Niccol told the Journal he wanted to improve Starbucks' mobile ordering system over the next year.

"At a minimum, we will be a lot better than where we are today," he said.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

• Starbucks is moving away from clear plastic cups in some locations.
• It has introduced opaque cups for its hot and cold drinks in 14 states.
• It's a big change for a brand known for its Instagrammable drinks.

Starbucks has rolled out opaque cups for its drinks in some states, marking a shift in presentation for a brand that's become known for designed-for-Instagram drinks.

A representative for the chain told BI that a "small number of stores" in the US transitioned to using "commercially compostable hot and cold cups because of local government requirements." The change went into effect on February 11 in 14 states, including California, Washington, and Massachusetts.

As of the end of December, the chain had over 17,000 stores across the US.

The new cups — which are white and feature flat or domed lids — look similar to the disposable paper cups the chain has historically used for to-go hot drinks. They bear the message, "This cup is compostable. Cheers to helping reduce waste together."

The website says they are made from fiber-based paper board with a bioplastic liner.

The move to opaque cups is a shift for a brand known for colorful drinks that often go viral on social media.

In 2019, Starbucks launched a limited-time-only drink, the Tie-Dye Frappuccino, a fruity drink with rainbow colors. Other notable — and Instagrammable — limited launches include the bright purple Unicorn Frappuccino in 2017 and the turquoise Crystal Ball Frappuccino in 2018.

Starbucks also sells some colorful items on its permanent menu, such as its magenta-colored Refreshers and its Chocolate-Covered Strawberry Crème Frappuccino Blended Beverage.

Mário Braz de Matos, the cofounder of the Singapore-based branding consultancy agency Flying Fish Lab, told BI that changing a product's packaging can "greatly impact a brand" from an experience and perception perspective.

"That's why brands are usually very careful to test any packaging changes that might significantly impact the user experience," he said.

"While there will be an impact on how 'Instagrammable' the beverages are in this new packaging, this must be weighed against its positive environmental impact," he said.

The transition to opaque compostable cups comes as Starbucks' CEO, Brian Niccol, attempts to reposition the brand and turn it into an inviting coffee shop where people want to spend time.

The brand has evolved significantly from its origins as a low-key Seattle coffee shop. In a podcast interview earlier this month, Niccol said mobile ordering has "chipped away" at the brand's "soul."

Niccol, who took over leadership of Starbucks in September, has said he will be simplifying the chain's offerings. In an earnings call on January 28, he said Starbucks had brought back using reusable ceramic mugs for hot drinks served in stores.

On the call, Niccol and Starbucks' finance chief also said the chain would remove 30% of its menu items to streamline service and introduce a new algorithm to smooth service for its mobile orders.

Starbucks' stock was trading at $112 early Thursday. It is up about 17% compared to a year ago.

• Brian Niccol, Starbucks' CEO, said the company is considering a large expansion in the Middle East and China.
• The brand will open 500 new outlets in the Middle East in the next five years, he said.
• Starbucks' sales in the Middle East have taken a hit due to boycotts over the war in Gaza.

Brian Niccol, Starbucks' CEO, said the coffee chain is eyeing a major expansion into the Middle East and Chinese markets.

In a Friday interview with Bloomberg, Niccol said that the chain's franchise operator in the Middle East, the Alshaya Group, will open 500 new stores in the region over the next five years. He said the opening of the new stores is projected to create 5,000 new jobs.

Niccol also talked about a large-scale expansion in China. He said the company is focused on how to get bigger in China "because the reality is, that market is going to continue to grow for us."

"Today, we have over 7,000 stores. There will be many more thousands of stores in China in our future," he added.

Niccol's comments about building Starbucks' presence in these two markets come after the brand saw losses in the Middle East last year, where it faced boycotts linked to the war in Gaza.

Starbucks' finance chief said in an earnings call in April that comparable store sales outside the US fell 6% in the second quarter of 2024, largely because its Middle East business had taken a hit. Starbucks said on its website in 2023 that it had nearly 2,000 stores operated by the Alshaya Group in the Middle East and North Africa region.

"The boycott and that whole information cycle, it's really unfortunate," Niccol told Bloomberg.

"Because obviously, it hurts the brand, it hurts our partners in the stores, and the thing that's really disappointing about it is, it's just not based on anything that's accurate or true, you know, we've never supported any militaries," Niccol said.

The chain also faces an uphill battle in China.

The market has been flooded with offerings from budget local coffee chains like Luckin Coffee, Cotti Coffee, and KFC's coffee wing, KCOFFEE. These chains are now competing with Starbucks for buy-in from China's cost-conscious consumers.

Comparable store sales in Starbucks China decreased by 6% in the latest quarter, which ended on December 29.

Niccol's vision for Starbucks

Niccol, who took the top job at Starbucks in September, has been making big changes at the company.

In October, he said he aimed to rebrand Starbucks as an inviting place for people to hang out.

Niccol said on the company's January 28 earnings call that Starbucks would simplify its offerings. It would also work to reduce wait times by improving its mobile ordering process and testing a new algorithm for mobile orders.

On the earnings call, Niccol and Starbucks' finance chief said the chain would cut 30% of its menu items to streamline service.

Representatives for Starbucks didn't respond to a request for comment from Business Insider, sent outside regular business hours.

• Starbucks is offering free coffee to loyalty members on Monday as a post-Super-Bowl deal.
• Starbucks Rewards members can get a free 12-ounce hot or iced coffee.
• Starbucks is offering fewer deals for loyalty members than the chain did a year ago.

Starbucks is handing out free coffee to members of its loyalty program on Monday.

The chain is offering Starbucks Rewards members a free 12-ounce hot or iced coffee all day on Monday. The promotion, called "Starbucks Monday," is meant to be a free pick-me-up as members return to work the day after the Super Bowl.

"With the Big Game on Sunday, Feb. 9, many Americans will spend the day going big — which may lead to a long Monday," Starbucks said in a statement announcing the deal.

Loyalty members can get the free coffee using a coupon in the Starbucks mobile app, the company said.

Still, Starbucks has been offering fewer promotions since last fall when it cut back on deals under CEO Brian Niccol. The company said that it would give members points instead of offering as many free items or discounts.

"As we've shifted out of discounts into more broad-based marketing, that's helped us reach a broader base of customers," Niccol said on an earnings call last month.

Some Starbucks baristas previously told Business Insider that they were often overwhelmed by mobile orders when the company offered rewards members deals.

The cutback on promotions is one of several changes that Niccol has overseen so far as Starbucks' CEO.

Starbucks also aired a commercial called "Hello Again" during pre-Super Bowl coverage on Sunday.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected]

• Dunkin' roasted Starbucks in its Super Bowl advertisement.
• The ad jabbed at Starbucks' long wait times and extensive customization options.
• Starbucks has recently discussed efforts to reduce wait times and simplify its menu.

Dunkin' used the biggest ad space of the year to jab at Starbucks.

The Super Bowl advertisement, which featured the actor-sibling duo Ben and Casey Affleck and the football coach Bill Belichick decked out in Dunkin' merch, depicted a competition among coffee brands.

Toward the end, the Affleck brothers and Belichick took turns roasting a group of baristas dressed in green jackets, which resembled Starbucks' signature green aprons and uniforms.

Though the trio did not explicitly mention Starbucks, they targeted some of the chain's widely publicized problems, such as long wait times and the extensive customization options that have contributed to them.

When one of the green-clad baristas addressed the Dunkin' team by saying, "About to get roasted! Like a dark seasonal roast with coriander and slight balsamic drizzle," Belichick replied, "Sounds like what's in my garbage disposal."

Ben Affleck then asked, "How much to wait a half hour to get my name spelled wrong on the cup?"

Casey Affleck piled on: "Nobody wants a goat milk double half-caff soy milk capp. You could just brew it — it's beans and water."

Representatives for Dunkin' and Starbucks did not respond to requests for comment sent outside regular business hours.

In an extended six-minute version of the ad, they also targeted McDonald's, where coffee and breakfast are an increasingly important part of the menu.

Starbucks' new CEO, Brian Niccol, has been working to simplify the chain's offerings and reduce wait times by streamlining its mobile ordering system, including by testing a new algorithm for mobile orders.

On the company's January 28 earnings call, Niccol and Starbucks' finance chief said the chain would also cut 30% of its menu items in a bid to streamline service.

A Starbucks representative confirmed to BI on Wednesday that the chain planned to lower the cap on the number of drinks customers could buy in one mobile order to 12 from 15 and remove some customization options for its mobile orders.

Niccol, who said mobile orderings had "chipped away" at the company's "soul," is trying to make Starbucks a cozy coffeehouse where customers can hang out. Dunkin', meanwhile, has long been known as a cheaper to-go coffee shop with little comfortable seating.

• Starbucks CEO Brian Niccol said mobile ordering "chipped away" at the brand's soul.
• In a Rapid Response interview, he said mobile ordering caused the brand to lose touch with its customers.
• Since he took on the top job in September, he has worked to make stores more inviting.

Brian Niccol, Starbucks' CEO, said that mobile ordering "chipped away" at the brand's soul.

In a Tuesday podcast interview with Rapid Response's Bob Safian, Niccol said, "I think one of the things that veered Starbucks a little bit off was the whole mobile ordering, the COVID situation."

Niccol added that he thought mobile orders affected the "connection" Starbucks has with customers because staff just used labels, and "stopped writing on the cups."

He said that the company also focused on how to "remove seconds from the proposition" instead of maintaining the "experience and the connection" for customers.

He said that, at the moment, Starbucks outlets have no control over how many mobile orders they receive, and this puts pressure on the baristas to "just get drinks out the door" instead of connecting with customers.

Niccol added that, on average, mobile-ordered drinks sit on the counter for six to eight minutes, so the customer doesn't end up with the best product.

"It's been sitting there, and then usually what happens is you ask our barista to remake it," he said.

In an earnings call on January 28, Niccol introduced a new algorithm for mobile orders in an effort to make mobile ordering a lot smoother.

Since the CEO moved from Chipotle for the top job in September, he's tried to make Starbucks coffeeshops more inviting.

That involves changes like having more comfortable chairs in the cafés and serving customers their coffee in ceramic mugs again.

In an internal memo obtained by Business Insider on January 27, the chain directed staff to start writing messages to customers on single-use coffee cups to add a more personalized touch.

On the January 28 earnings call, Niccol and Starbucks' finance chief said the chain would also reduce the number of items on the menu and add digital menu boards to stores.

Representatives of Starbucks did not respond to a request for comment from Business Insider sent outside regular business hours.

• On a recent trip to India, I went to Starbucks, Domino's, McDonald's, and Burger King.
• I would eat at Domino's and McDonald's more if they had similar menus in the US.
• My Starbucks experience was similar to home, but it felt much more like a sit-down restaurant.

One of my favorite things about traveling is getting to try new foods.

However, I often travel with my kids, who aren't very adventurous eaters. That means I find myself frequenting popular fast-food chains around the world more often than I'd like.

On a recent trip to India, we ended up at Starbucks, Domino's, McDonald's, and Burger King. In a way, seeing how the country adopted these familiar concepts was its own kind of cultural experience.

Here's how the American fast-food chains' locations in India compared to ones we're used to in the US.

The first familiar chain we visited was Starbucks.

On my first morning in India, I desperately needed coffee, and I had a feeling Starbucks would be reliable and easy to navigate.

When I walked in, it looked similar to almost every other location I've been to. The menu had many US standards, with some Indian-inspired drinks and food items mixed in, which I appreciated.

I stuck to the basic latte I usually order at home. However, I was more adventurous when it came to my meal: a delicious masala potato puff.

Sitting down to eat at Starbucks isn't all that familiar to me.

After ordering, I quickly realized there was a key difference between this Starbucks and the one down the street from my house. Instead of waiting around for my name to be called, I was told to take a seat, and my order would be brought out to me.

Drinks were served in mugs and glasses rather than disposable cups, and meals came on dishes rather than in thin wrappers.

I liked that my Starbucks experience in India felt more like a sit-down restaurant than a quick-service coffee shop.

Another notable departure is that the Starbucks I visited in Delhi didn't open as early as I expected.

I assumed the chain accommodated morning caffeine fiends like myself everywhere in the world — many locations in the US open as early as 5 a.m. — but I had to wait for this Starbucks to open at 9 a.m.

Domino's in India surprised me.

I find Domino's locations in the US to be mediocre, but my kids love the chain. I was intrigued when I saw the American pizza place scattered throughout India, and eventually, we stopped at one.

I had a hard time deciding between the peppy paneer, indi tandoor, and cheese volcano. I love cheese, though, so I went for the volcano, which included a huge cup of cheese in the center of a pizza topped with a variety of veggies.

I really enjoyed it — I wish Domino's would bring volcano pizzas to the US.

The tables were turned when it came to who enjoyed Domino's more.

My son ordered a kids' meal (which came with a drink and dessert) and stuck with his normal Margherita pizza.

He said it wasn't as good as Domino's at home because the crust didn't seem the same, but overall, he was happy. Domino's chains near us in the US don't even sell kids' meals, and he liked the novelty.

I wish McDonald's back home had some of the Indian offerings.

My family rarely eats at McDonald's in the US, but we went to two different locations in India. One was in an abandoned mall, and the other was in the upscale Connaught Place shopping area.

The ambiance at each was different, but the Indian-inspired menu was the same.

One of my biggest takeaways was that it felt odd to be at a McDonald's that didn't have hamburgers. Cows are considered sacred in Hinduism, the most common religion in India, so many places don't serve beef.

Instead, the chain had chicken, potato, and veggie burgers. My kids and I shared a few different types, all of which we enjoyed.

My favorite was the McAloo tikki burger, which consisted of a patty made out of potato, peas, and spices topped with a tangy tomato-mayo. I'd go to McDonald's more often if it had something similar back home.

My pizza-loving son tried a McPuff. The pizza puff looked promising, but we ultimately deemed it mediocre.

We got special drinks at McDonald's, too.

My kids and I shared fries and sodas at McDonald's that were nearly identical to what we have in the US. However, we also had the option to add ice cream to our drinks, which was new and exciting.

My daughter really enjoyed her orange soda with vanilla ice cream.

Burger King had all sorts of unexpected menu items.

On our final night, my son and I got takeout from Burger King and met friends who were eating at a nearby KFC. It seemed like an odd last dinner to have in India, but it was convenient and quick.

Similar to McDonald's, Burger King had a menu full of chicken patties and veggie burgers. The chain also served mutton in place of beef.

The menu included some locally inspired dishes, like a paneer wrap, but I was more surprised to see tacos and an extensive selection of desserts for sale.

Our food was flavorful and good.

I was tempted to try the tacos. However, my favorite curry in India was makhani dal, so I decided to try a crispy vegetarian makhani burger. It was very good.

I paired my burger with cheese fries and a side of Fiery Hell Dip, which luckily wasn't as spicy as it sounded.

I'm actually kind of glad my kids have made these fast-food visits a habit.

I wouldn't want to eat every meal at American restaurants when I'm abroad. However, I have to admit occasional visits to familiar chains are fun.

It makes my kids happy, but more than that, I feel like paying attention to the little (or big) differences helps me learn a little more about our destination.

Plus, it's always fun to try specialty items we can't get back at home.

• Starbucks is testing a new algorithm to help fill mobile orders.
• The algorithm prevents mobile orders from hitting Starbucks baristas all at once.
• The orders have overwhelmed stores and lengthened wait times, employees have said.

Starbucks wants to make sure customers aren't caught up in counter chaos at busy times.

The coffee chain has been struggling with how to serve walk-in customers as well as those who've ordered on the app without staff getting overwhelmed and consumers having to wait around. It says it's experimenting with a new algorithm in a few stores that "smooths out those rushes of mobile orders" that some baristas have complained about.

Starbucks will also start to separate mobile and for-here orders using risers and shelves at the pick up counter, and is developing an option that would allow customers to schedule a time to pick up their order, CEO Brian Niccol said on an earnings call Tuesday.

Some stores have struggled to fill mobile orders without long wait times, Starbucks store workers, whom the chain calls "partners," told Business Insider last year. Starbucks mobile orders hit stores in real-time, which can lead to a bunch of orders piling up at once and overwhelming staff, the partners said.

On Tuesday, Niccol said that Starbucks is tackling "bottleneck situations where the mobile ordering really overwhelms the production experience, to the point where we can no longer provide a great service experience."

Niccol has said he wants to improve customer service and make Starbucks stores places where customers want to linger.

At Starbucks' drive-thru lanes, it's easier to space out orders and give partners more time to prepare food and drinks as customers wait in line, Niccol said. "We know how to get the window times we're after," he said.

By contrast, "there's no gating on the mobile orders," Niccol said.

Baristas often end up making mobile orders for customers who aren't at the store yet while making people who ordered in-store wait longer, he said. Pick-up counters get crowded, and partners don't have time to chat with customers or provide good service, Niccol added.

"We gotta fix it," he said.

Starbucks is using the algorithm in just three stores at the moment, but early results show improvements in financial performance as well as employee and customer satisfaction, Niccol said.

"It sequences those mobile orders, so it can allow the café order to get fulfilled in a timely fashion and with a touch of humanity," Niccol said.

The algorithm is one of several changes that Starbucks has made lately. Earlier this month, the chain said it would start requiring visitors to make a purchase in order to get a free cup of water or use the restroom.

Starbucks has also reduced promotions for rewards members, reintroduced self-service bars for milk and other condiments to its stores, and asked baristas to start writing messages on to-go cups.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

• Starbucks CEO Brian Niccol can't get enough of the chain's ceramic mugs for in-store customers.
• He mentioned them thrice in a Tuesday earnings call, during which the chain reported a 4% sales dip.
• The reintroduced mugs are part of Niccol's efforts to make Starbucks a more inviting place.

Brian Niccol can't get enough of Starbucks' ceramic mugs.

Since the CEO moved from Chipotle for the top job in September, he's focused on making Starbucks more inviting for customers to hang out.

Niccol introduced several changes, including having more comfortable chairs in the cafés and serving customers their coffee in ceramic mugs again.

On the company's Tuesday earnings call, he brought up the mugs three times.

"We reintroduced ceramic mugs and handwritten notes on cups to better connect with customers and elevate the café experience for those who choose to stay and work," he said in his opening statements.

He then coined the term "mug hug," referring to customers enjoying their coffee in the cafés.

"They're holding on to that ceramic mug and they're enjoying their moment in the café, and there's not all this congestion surrounding the counter. So, it's just a much more pleasant, peaceful coffee experience," Niccol said.

He said that the chain has been working to clear counter space from a deluge of mobile orders.

Toward the end of the call, he said the ceramic mugs and other "for-here" tableware make the customer feel like Starbucks is a spot where they can "slow down," connect with others or take time for themselves.

It's unclear when Starbucks stopped serving in-store coffee in mugs. The company has continued to use them in some stores, including internationally. The company's annual reports last featured photos of the ceramic mugs in 2006, after which they displayed disposable cups and to-go bags.

The company did not respond to BI's request for comment.

Starbucks' cups have been a large part of its brand identity. It coined November 17 its "Red Cup Day," when customers can get reusable 16-ounce red cups with the purchase of a holiday drink.

Starbucks is working on a slew of changes

In an internal memo obtained by BI on Tuesday, the chain directed staff to start writing messages to customers on single-use coffee cups.

"Handwritten notes on our cups have proven to be a simple, yet meaningful action that fosters moments of connection with our customers," the memo read. "To build on that, we are updating our expectation for writing on cups. Starting 2/24, the expectation will shift to include a personalized note on all cups."

The company suggested employees write a simple affirmation, such as "You're amazing," or "Hello again" for regulars.

The coffee chain, which has been struggling with sliding sales in recent quarters, seems to be turning around. Comparable sales fell 4% for the quarter ended December 29, the company said on Tuesday, a smaller decline than predicted by analysts.

On the earnings call, Niccol and Starbucks' finance chief said other changes slated for this year include reducing the number of items on the menu, introducing a new algorithm for mobile orders, and adding digital menu boards.

The company's stock was flat after hours. It's up 6.7% in the last year.

• Starbucks CEO Brian Niccol said the coffee giant will cut 30% of its menu offerings this year.
• In an earnings call, Niccol told investors the cuts are part of Starbucks' plan to streamline service.
• Since becoming CEO in September, Niccol has rolled out efforts to "get back to Starbucks."

Starbucks' increasingly complicated menu is a thing of the past, CEO Brian Niccol told investors during a Tuesday earnings call.

Niccol said the international coffee chain plans to cut 30% of its food and drink offerings by the end of its fiscal year — which for the company is in September — as part of his effort to streamline service at Starbucks stores.

"We've been focused on simplifying our menu to position partners for success, improve consistency, drive customer satisfaction, and enhance our economics," Niccol said. "As part of this work, we made some late simplifications to our holiday product line-up and believe we have more opportunity ahead as we follow a discipline stage-gate process to innovate and bring to market, fewer, better beverage and food offerings that reflect our premium positioning."

The Starbucks corporate office will continue to work with its in-store partners for inspiration on new product lines based on changing consumer preferences like it did with its lavender drinks last year, Niccol said, as well as release new cultural offerings like its current Dubai matcha drink.

A representative for Starbucks declined to answer specific questions about the planned menu simplification — such as which menu items will be targeted or when the cuts will be made — when reached by Business Insider.

The new CEO, who took the job in September 2024, has rolled out several "back to Starbucks" initiatives in an attempt to fix slumping sales at the coffee giant and improve the chain's reputation, which in recent years has been marred by inconsistent drink preparations and long wait times. One longtime barista previously told Business Insider the chain has become a "soulless fast-food empire" rather than the quirky local coffee shop it started as.

Niccol's strategy — which includes rolling back surcharges for non-dairy creamers, bringing back handwritten notes on your coffee cup, and installing new, more comfortable decor — has earned the approval of Starbucks' former CEO, Howard Schultz, who last year said he has total faith in Niccol's back-to-basics plan.

It also appears to be resonating with customers and shareholders, as the company's first-quarter earnings beat expectations, despite a decline in sales, and shares are up more than 10% in the last month.

• Starbucks reported first-quarter earnings late Tuesday.
• The results beat expectations, although comparable sales still fell.
• New Starbucks CEO Brian Niccol has been making changes at the chain.

Starbucks has turned to a new CEO and a new strategy to stop sales tumbling. Although it's early days, it looks like the first steps have added a small caffeine boost to the company.

Comparable sales fell 4% for the quarter ended December 29, the company said on Tuesday. While still a decline, analysts surveyed by Bloomberg were expecting a drop of 5.3%. Net revenue reached $9.4 billion, also slightly beating estimates.

Starbucks is in the middle of a turnaround effort. Sales have fallen in recent quarters, and store workers have told Business Insider that they are often understaffed and struggle to make drinks and food in a timely manner.

CEO Brian Niccol, who joined the company from Chipotle in September, pointed to several improvements planned for this year on the earnings call on Tuesday. Among them are reducing the number of items on Starbucks' menu, using a new algorithm to handle mobile orders, and adding digital menu boards to stores.

The company is also backing away from a previous goal of $4 billion in savings by 2028, CFO Rachel Ruggeri said on the call, though Starbucks is still looking for efficiencies, she added.

Her comments took some of the wind out of Starbucks' shares after hours, which retreated from an increase of about 4% to trade up about 0.6%.

Niccol has said that he wants to cut wait times for orders to four minutes or less while also making Starbucks stores places where customers want to hang out.

The changes so far include limiting bathroom access and free water to paying customers, as well as asking baristas to add handwritten notes to to-go cups.

"While we're only one quarter into our turnaround, we're moving quickly to act on the 'Back to Starbucks' efforts and we've seen a positive response," Niccol.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

• Starbucks wants store workers to add smiley faces and inspirational messages to cups.
• The requirement, spelled out in a memo, also suggests writing customer names by hand.
• It's the latest change coming to Starbucks as the chain tries to improve results.

Your morning pick-me-up from Starbucks could soon come with another form of motivation such as a smiley face or inspirational message.

The coffee chain is telling Starbucks employees to write messages to customers on single-use coffee cups starting on February 24, according to a memo obtained by Business Insider.

The memo includes suggestions for employees, whom Starbucks calls "partners." Among them: Use a sharpie to write "a simple affirmation" such as "you're amazing" on the cup to give it a personal touch.

The memo also tells partners that they can write the customer's name — a habit that has been the butt of jokes when Starbucks workers previously spelled patrons' names wrong on cups — or use "hello again" for someone who stops by regularly.

"Handwritten notes on our cups have proven to be a simple, yet meaningful action that fosters moments of connection with our customers," the memo reads.

Though the extra step isn't required until next month, it encourages partners to start doing it on Monday, the day the company is starting to implement changes such as the rollback of its open-door policy.

A Starbucks spokesperson confirmed the memo and said that writing on cups is part of an effort to make Starbucks "a welcoming coffeehouse."

One Starbucks partner at a store in the South told BI that the mandate is at odds with another goal that Starbucks CEO Brian Niccol has set — that of getting customers their orders in four minutes or less.

Writing or drawing on cups "will have a moderate to significant impact on times given how it impacts our beverage sequencing," the partner said. The partner declined to be identified by name, but BI has verified their identity.

Niccol first indicated that store partners would have to write messages for customers on to-go cups last fall.

It's one of several changes at Starbucks so far under Niccol's leadership, along with cutting back on promotions and requiring store visitors to make a purchase to get bathroom access or request a free cup of water.

Starbucks' sales in the US and globally declined last quarter. Niccol has said that he wants to win customers back by making Starbucks stores pleasant places to linger.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

Read the memo to Starbucks store employees:

New Expectation for Writing on Cups

Please review this update regarding writing on cups.

January 24, 2025

Store Operations

By Retail Communications

For US company-operated shift supervisors and above

ALERT

NEW

Handwritten notes on our cups have proven to be a simple, yet meaningful action that fosters moments of connection with our customers. To build on that, we are updating our expectation for writing on cups. Starting 2/24, the expectation will shift to include a personalized note on all cups. We encourage partners to begin activating on this change as early as 1/27 to incorporate this routine with other Back to Starbucks coffeehouse initiatives launching that day.

Forecasted hours will be adjusted where appropriate to reflect this addition to routines starting with the forecast for the week of 2/24, which is visible 2/6.

Impacted beverage and order routines have been updated to reflect this new expectation, a full list of these updated routines and recommendations for storing Sharpies can be found in the Additional Information section at the end of this message.

Not sure what to write? Partners can opt for the following when writing on cups (also keep in mind the guidelines shared about craft of connection in the December Monthly Update):

• Add the customer's name
• Draw a smiley face
• Write a simple affirmation ("You're amazing")
• Share well wishes ("Seize the Day")
• Leave a simple "hello again" for regulars

• Starbucks will soon require visitors to buy something to use the bathroom or to get free water.
• Some store employees say that limiting those amenities to paying customers might not be possible.
• Starbucks has told workers how to de-escalate tense interactions in advance of the new policies.

Some Starbucks store employees say the coffee chain's new bathroom and free water policies might not be enforceable.

Store managers have been explaining new guidelines, which are part of its "Coffeehouse Code of Conduct," to staff in three-hour long meetings this week.

One of the biggest changes: Starbucks visitors will need to buy something in order to get a cup of water or use the bathroom. That reverses Starbucks' previous open-door policy, which the chain implemented in 2018. Starbucks enacted it after a Black man who had not bought anything asked to use the restroom and was subsequently arrested at a store in Philadelphia.

One store manager told Business Insider that the new policy could make it easier to tell people who are being disruptive or potentially dangerous to leave the store.

"We're really being given more of an ability to protect the partners, especially in high-incident stores," the manager said. (Starbucks refers to its store employees as "partners.")

Making such "high-incident stores" lower-incident seems to fit with new CEO Brian Niccol's goal of making them places where people want to hang out. The company has been struggling with declining sales in the US and globally, and Niccol has been keen for the coffee shops to become spaces where customers linger longer.

However, other Starbucks store employees told BI that they foresee problems enforcing the new policy when it takes effect on Monday.

One partner at a store in Florida said that she and other employees there will likely keep giving out water, even if the visitor hasn't purchased anything, just to avoid confrontation.

"They're just going to walk over, scoop up a water, and give it to the person to get them the hell out of there and not argue," the partner said. "That's really what's going to happen."

"We're training our partners to ensure that everyone who visits our store has a great experience," Starbucks spokesperson Jaci Anderson told BI. "This starts with boosting our baristas' confidence by encouraging them to warmly acknowledge and engage with every person in our store, treating them with kindness, respect, and assuming positive intent."

During her store's three-hour-long meeting, the Florida partner told BI, her manager said partners should remind customers about the new policy if they ask for water or want to use the bathroom without a purchase. The manager provided de-escalation tactics in case the conversation got heated.

But the manager also said partners shouldn't follow patrons out of the store if they break that policy, she said. That advice is reminiscent of Starbucks' policy on dealing with shoplifters, which forbids partners from taking direct action to stop theft, the partner said.

"If you see someone and you know that they just put a bag of coffee down their shirt, it is against policy to confront them," the partner added. Starbucks confirmed that it trains partners to de-escalate and disengage if a person's behavior puts the safety of others in jeopardy.

Other retailers, including Walmart, have similar rules that prohibit store employees from taking action against potential thieves.

Another Starbucks partner at a store in the South agrees with the decision to reserve free water and bathroom access for paying customers. "I don't think it's right for people to use our bathrooms, which we have to clean and maintain, unless you're a paying customer," the partner said.

But he added that the bathrooms at his store don't have locks to access them, allowing anyone to use them. Instead, the partner said, his store will get signs for the bathrooms that say "Customers Only."

"The way my manager explained it is that it gives us the support to ask people to leave that are disruptive, but we're not going to be the bathroom police," he said of the new policy.

CEO Niccol has said that he wants to make Starbucks stores "inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between 'to-go' and 'for-here' service," he wrote in an open letter published after he started at the company in September.

Declining to hand out water and provide bathroom access appears to be at odds with Niccol's goal of making the stores places where people want to spend time, the partner in Florida said.

"We're supposed to be the third place where people come and hang out," the partner said. "That's where they've contradicted themselves."

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

• Starbucks' new CEO, Brian Niccol, made nearly $100 million in his first four months running the company.
• His total compensation between taking the gig in September and the end of 2024 was $95,801,676.
• The pay was mostly in stock awards but also included a $5 million bonus after one month on the job.

Starbucks' new CEO, Brian Niccol, made almost $100 million in his first four months at the company, a new filing shows.

Niccol's executive compensation package for 2024, valued at $95,801,676, encompasses the total pay he earned between taking the gig on September 9 and the end of the year.

While the compensation was mostly in stock awards — his base salary is $61,538, before his award of $90,291,772 worth of stocks — his pay package also included a $5 million sign-on bonus after completing his first month on the job.

The package also included $418,071 in additional compensation, which the filing indicates includes $143,567 of temporary housing expenses — as Niccol was not required to relocate from his home in Southern California to the company's headquarters in Seattle, and instead supercommutes using Starbucks' company jet.

Niccols' commute costs the company an additional $72,398 of expenses "related to his use of Starbucks aircraft for travel between his city of primary residence and Starbucks headquarters" and $19,367 "related to his other personal use of Company aircraft," the filing notes.

"Mr. Niccol's aircraft expenses represent the aggregate incremental cost incurred by the Company to operate the aircraft for such use, including fuel costs, flight crew travel expenses, in-flight catering, landing fees, communication expenses, and other trip-related variable costs, and do not include fixed costs that would be incurred regardless of whether there was any non-business use of the aircraft, such as aircraft purchase costs, pilot and crew salaries, insurance costs, and maintenance," the filing reads. "For trips that involve mixed non-business and business usage, we include the incremental cost of any non-business usage (i.e., the excess of the cost of the actual trip over the cost of a hypothetical trip without the non-business usage)."

Starbucks also footed the bill for $6,303 in COBRA insurance reimbursements, $48,671 in reimbursements in legal fees related to negotiations over the terms of his employment, and $127,765 worth of physical protection security expenses.

"Personal driver services were provided to Mr. Niccol at no incremental cost and is fulfilled by Starbucks salaried partners as part of his executive protection support," the filing reads.

• Starbucks is holding three-hour training sessions to implement the CEO's 'back to Starbucks' strategy.
• The training focuses on customer service, new workflows, and reversing the chain's open-door policy.
• Employees are also being taught how to de-escalate conflict with customers.

Starbucks is teaching staff how to de-escalate conflicts involving customers breaking its new in-store policies.

As part of new CEO Brian Niccol's vision to make its stores places where people want to hang out again, Starbucks is giving three-hour training sessions for store employees in the US.

In a segment of documents from the barista training, seen by BI and verified by Starbucks, employees are told to "leverage de-escalation tactics" if regular customers refuse to comply with the company's recent reversal of its open-door policy. It previously let non-paying guests use store facilities, like bathrooms, indoor communal areas, and patios.

The Seattle-headquartered coffee chain said earlier this month that from January 27, these spaces will only be reserved for staff, customers, and people accompanying those making purchases.

According to the documents, as part of the training, baristas are given a scenario where a regular customer who frequently visits the store sits in it for a "prolonged" period of time without buying anything.

It continues to say that when the staff member tells the guest the seating space is only intended for customers who purchase something, they share that they don't think they need to make a purchase to stay in the store.

The training advises that if the regular customer refuses to comply, employees should "listen to the customer's concern and kindly reiterate the intended use of our space."

Staff should then "leverage de-escalation tactics to prioritize empathy and understanding."

"Ask the shift supervisor or store manager for help if the conversation continues," it says.

One partner at a store in Florida who has taken the training said it had clear guidance on how to handle difficult customers. "If there's a situation that's escalating, move it aside, get your manager," the partner said. The message was clear: "Don't take it on your own."

One of the documents also sets out what baristas should do if a regular customer who does not make a purchase asks for their water bottle to be refilled.

"Politely share that water is available to customers who make a purchase," the document states.

"Note that we have bottled water for purchase," it says. "Kindly share you'd be happy to provide water if they make a purchase."

The partner BI spoke to said that in some circumstances, the easiest way to avoid conflict would be to give patrons water. "Some of these people, it could set them off," the partner said.

A Starbucks spokesperson told BI that, like other orders, water should be asked for when making a purchase to avoid interrupting baristas as they're preparing drinks. They said this has been an issue raised by employees.

They added that stores that want to provide easy access to water or experience high volumes of requests have the option of setting up self-service stations.

Starbucks' new training meetings are being rolled out across the company this week. They are intended to help implement Niccol's "back to Starbucks" strategy, which corporate communications director Jaci Anderson told Business Insider means making "tangible changes" in stores "to create a welcoming environment and win back customers."

Store managers will receive 40 hours of training to learn the new standards of service and how to train staff to bring the new vision to life. Store employees, who Starbucks calls "partners," will participate in three-hour sessions to discuss customer expectations, new workflows, and service standards.

• Starbucks is in the middle of a turnaround effort.
• The coffee chain is making changes, including some later this month, aimed at improving sales.
• Here are the biggest shifts, from more free refills to the end of Starbucks' open-door policy.

Starbucks is starting off 2025 with some big changes.

Former Chipotle CEO Brian Niccol took the helm of the coffee chain in September. Since then, Starbucks has announced a series of shifts meant to get customers ordering drinks and food again.

The turnaround attempt comes as Starbucks' sales, both in the US and globally, fell during its fourth quarter.

Here are the biggest changes that Starbucks has announced over the last few months:

Starbucks will require a purchase to hang out

Starbucks visitors will have to order something or be with someone who does in order to hang out at one of the chain's stores, starting January 27.

The coffee chain confirmed the change on January 13. It replaces the previous open-door policy, which Starbucks implemented after two black men were arrested in 2018 after one asked to use the bathroom at a Philadelphia store without buying anything.

The new policy, part of the "Coffeehouse Code of Conduct," is meant to "prioritize our paying customers who want to sit and enjoy our cafés or need to use the restroom during their visit," a Starbucks spokesperson told Business Insider.

Starbucks is offering free refills to more patrons

Another change taking effect on January 27 will allow all Starbucks customers, not just members of the chain's rewards program, to get free refills on many brewed coffees and teas.

Customers can get them by using a clean reusable cup of their own or an in-house ceramic one provided by the chain. They also have to order their drinks in-store, and refills are only available on a beverage during a single visit.

Starbucks' self-serve condiment bars are returning

Starbucks said last year that it would bring back self-service condiment bars in early 2025.

The change means customers will have to add their own milk, sugar, and other condiments to their drinks instead of relying on baristas to do it behind the counter. It will cut the time it takes baristas to serve hot cups of coffee, Niccol said on an earnings call in October.

Rewards members are getting fewer promotions through the app

The days of plentiful buy-one-get-one-free Frappuccino deals appear to be over.

Starbucks has been cutting back the number of promotions that it has offered rewards members through its app, the Wall Street Journal reported in October. It's part of a push to make the coffee chain feel more upscale, the Journal reported at the time.

The change was welcomed by some baristas, who previously said that they were overwhelmed when customers used the Starbucks mobile app to order multiple drinks at once, including through deals such as four beverages for $20.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].