Starbucks plans $1 bln cafe makeover to lure customers back, FT reports

Starbucks is planning to spend approximately $1 billion to revamp its cafes, aiming to create a more welcoming atmosphere to entice customers to spend more time in its stores and purchase additional beverages, according to the Financial Times. The coffee chain intends to upgrade around 9,000 of its company-operated cafes in North America, with each store upgrade estimated to cost about $150,000, the FT reported, citing Starbucks' senior vice-president of coffee house design and concepts, Dawn Clark.

Around 1,500 stores are projected to undergo the renovations by the end of September, the report added. Dubbed "uplifts," the upgrades include the addition of chairs, rugs, bookshelves, plants, and softer furnishings, reviving Starbucks' "third place" concept, which serves as a space between home and work. This strategic move aligns with Chief Executive Brian Niccol's turnaround plan following two challenging years for the company.

In addition to the store upgrades, Starbucks is targeting cost savings of $2 billion over the next two years, the FT reported. The company claims that the store upgrades can be completed overnight at a fraction of the expense of previous remodels.