How Starbucks Is Changing Its Coffee Shops

Why It Matters

The redesign positions Starbucks to capture more in‑store spend, improve customer satisfaction, and differentiate its brand through a community‑focused, data‑driven experience.

Key Takeaways

• Starbucks added 25,000 seats to boost in‑store traffic
• Green Apron service standardizes customer experience and partner training
• Store managers now control inventory decisions, enhancing responsiveness
• Goal of 90% daily replenishment improves product availability
• Multi‑channel model (mobile, drive‑thru, cafe) drives overall sales growth

Summary

Starbucks is undertaking a sweeping redesign of its coffee shops, emphasizing more seating, a unified service standard, and greater store‑level autonomy. Chief Operating Officer Mike Grahams explained that the company has re‑introduced roughly 25,000 seats across locations, turning former take‑out‑only spaces into vibrant gathering spots while maintaining drive‑thru and mobile‑order capabilities.

The initiative is anchored by the Green Apron service model, which codifies customer‑service expectations and provides extensive training for partners. At the same time, Starbucks is empowering managers to make real‑time inventory decisions, exemplified by a partner who was given control over water ordering, reducing stockouts and improving the “you sell more stuff when you have it on hand” mantra. A target of 90% daily replenishment by year‑end aims to keep popular items stocked and accelerate promotional rollouts.

Notable examples include the 23rd and Park location, where seats were retrofitted into a former pickup‑only store, and a Buffalo café where a customer used a power‑outlet‑filled table for a video conference. Grahams highlighted that over half of Starbucks’ customers now use the cafe for sit‑down visits, reinforcing the brand’s role as a community hub.

The broader implication is a more flexible store footprint that can thrive on smaller lots, while the integrated four‑channel approach (mobile, drive‑thru, delivery, and in‑store) creates cross‑selling opportunities and strengthens loyalty. By marrying increased seating with operational agility, Starbucks aims to capture higher transaction values and sustain growth in a competitive coffee market.

Original Description

What is the status of Starbucks’ turnaround?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Mike Grams, the chief operating officer of the coffee shop giant.

Grams joined us from a Starbucks Reserve location in New York City following the company’s Investor Day presentation.

He spoke extensively about the company’s various plans to improve the operations inside the chain’s coffeehouses.

That includes the remodels the chain is making to make even the smallest locations friendlier for in-store customers. He also explains why that is important for a company that has mobile order, drive-thru and delivery.

Grams discusses the chain’s “Green Apron” service model and why that model both helps with manager morale as well as service time. He also gives an update on the chain’s push to improve service times and what else the company plans to do to speed service.

We also talk about Starbucks’ expansion plans and why the company believes it can fit 5,000 more shops, at least, in the U.S.

We’re talking Starbucks on A Deeper Dive so please check it out.