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Starbucks’s CEO Just Announced a Big Change to Win Back Customers — And It Came With Hundreds of Store Closures

Erika Willitzer
6 hours ago
3 min read

You may have seen the headlines lately: Starbucks is closing more than 400 stores and rolling out a bold plan to bring customers back through its doors. It sounds dramatic — and it is — but there’s a strategy behind the headlines that small business owners can learn from. (Fast Company)

Let’s unpack it.

What Starbucks Is Changing — And Why

Under CEO Brian Niccol (who previously led turnaround work at Chipotle and Taco Bell), Starbucks has shifted course from pure convenience and speed back toward connection and experience. (Inc.com)

A few key pieces:

The “Back to Starbucks” Strategy

Starbucks wants to reestablish itself as your go-to third place — not just someplace you grab coffee fast, but a place you enjoy being in. That means:

Cozy seating
Outlets for laptops
More welcoming interior design
A focus on human connection over efficiency alone

This effort to “put the Starbucks experience back at the center” is known internally as their Back to Starbucks strategy. (About Starbucks)

Hundreds of Store Closures

At the same time, the company has announced it will shutter roughly 400 underperforming U.S. stores. These closures are part of a broader, ~$1 billion restructuring plan intended to focus resources where they’ll have the most impact. (Straight Arrow News)

Niccol explained that some stores simply can’t be remodeled into the inviting environments Starbucks now prioritizes — so the best choice is to close them rather than keep them open as weaker traffic drivers. (About Starbucks)

So Why Did This Happen?

Starbucks isn’t just doing this for fun — there’s data behind the decision:

Customer patterns have shifted — many consumers who once came into stores daily are now visiting less often, citing higher prices and long wait times. (EMARKETER)
Pickup-only formats and hyper-efficiency models helped with speed, but may have eroded the warm, inviting feel that originally made Starbucks special. (Fast Casual)
Revamping stores and slowing closures are calculated moves to rebuild traffic where it counts most. (QSR Magazine)

In short: Starbucks realized that experience still matters — and that convenience alone isn’t enough to keep customers loyal.

What Small Business Owners Can Learn From This

Whether you run a cafe, boutique, or service business, there are some clear lessons here:

📌 1. Don’t Lose What Made You Special

Starbucks didn’t start as just another transactional stop — it created an experience. Over time, when that experience was downplayed in favor of speed and tech, customers drifted. Lesson: Always protect what makes your brand unique — even as you grow or streamline operations.

📌 2. Experience Trumps Convenience — Sometimes

Tech and efficiency can boost sales in the short term, but customers remember how you made them feel more than how quickly you served them. Lesson: Invest in your space, customer interaction, and environment. A memorable experience builds loyalty that price wars can’t win.

📌 3. Make Data-Driven Decisions — Even When They Hurt

Closing hundreds of stores wasn’t easy, but Starbucks looked at performance data and made tough calls to strengthen the whole system rather than maintain weaknesses. Lesson: Regularly review what’s working and what isn’t. Don’t be afraid to cut underperforming offerings or rethink your approach — for the right reasons.

📌 4. Focus on the Long Game

Starbucks is in this for the long haul — investing in remodels, staff training, and customer culture — not just short-term metrics.👉 Lesson: Sometimes the best investment is not into more customers, but better experiences for the ones you already have.

What This Means for Your Business Today

If you’ve been wondering whether small businesses still have a place in a world increasingly dominated by quick transactions and automation — the Starbucks story says yes — as long as you offer something worth coming back for.

Customers want: