Starbucks Marks 1,000 Renovations in Turnaround Push
Starbucks has completed more than 1,000 café renovations over the past nine months as part of a roughly $1 billion effort to restore a traditional coffeehouse feel, with thousands more planned for the next fiscal year. The remodels are a centerpiece of the Back to Starbucks turnaround led by Chief Executive Brian Niccol, who marked his two-year anniversary leading the company this week. The renovations add armchairs, rugs, ceramics, houseplants, curtains, mirrors and colorful wall paint to stores, along with settee chairs equipped with electrical outlets. The company is spending about $150,000 per store, roughly one-tenth of the cost of prior remodels, and completing the work overnight so locations do not close during the day, according to Dawn Clark, senior vice president of coffeehouse design. Starbucks has identified $2 billion in cost savings to help offset the spending. In a letter on Thursday, Niccol declared that Starbucks is back, citing coffee cup doodles, condiment bars, ceramic mugs, free refills and retrofitted stores. The company said it bought 200,000 Sharpies so baristas can write personalized messages on cups under its Green Apron Service program.