Portugal Colonial - Starbucks shift on non-paying visitors stirs debate in US

In a new code of conduct issued Monday, the hot drink behemoth that boasts 29,000 retail stores in 78 markets said it wanted "to ensure our spaces are prioritized for use by our customers."

That includes the chain's cafes, patios and restrooms, according to the policy, which Starbucks noted is something most retailers enforce.

US retailers like Starbucks that bill themselves as a so-called "third space" -- a gathering place outside the home or office -- face a dilemma in a country where public restrooms are sparse.

The question of bathroom access has been a fraught one for Starbucks, with the issue thrust into the spotlight in 2018 when two Black men were refused access to a branch bathroom while they waited for a friend.

When they sat in the Philadelphia location's seating area without ordering, staff called the police, sparking a PR disaster. The men were arrested but never charged.

Following the debacle, Starbucks adopted an "open bathroom" policy meaning its restrooms -- at the cafes that had them -- would be open to all.

But in 2022 interim chief executive Howard Schultz said the policy might have to end, owing to safety issues from people with mental health problems.

- 'Harden our stores' -

"We have to harden our stores and provide safety for our people," Schultz said at the time. "I don't know if we can keep our bathrooms open."

In one busy Manhattan location, where the policy was not yet displayed on the door as planned, a barista who declined to be named said "people are still gonna try and go in there -- the homeless of course -- that's for sure."

The Midtown branch was equipped with a single toilet, fitted with a numerical lock, with a steady stream of people using the facility after obtaining the code from staff.

"But if people follow the rules it should be better," the barista added, suggesting the policy would make life easier for staff.

At another location a few blocks away, an employee said "it's fine" for non-paying visitors to use the restroom and the cafe seating area, apparently unaware of the new policy.

Starbucks customer Noelle Devoe speculated on X that the policy would not be used against "college kids or professionals."

"It'll just be a way for them to kick out those they feel are undesirable," she said.

Starbucks posted a 3 percent decline in global net revenue for the fourth quarter year-on-year, to $9.1 billion, in October 2024.

The results showed that sales are continuing to fall, as the new CEO vowed a strategic overhaul to turn the company around.

The caffeinated giant claims in its corporate motto to be "nurturing the human spirit... one neighborhood at a time."

C.Amaral--PC