Starbucks has announced a significant shift in its customer policy, reversing a five-year-old rule that allowed non-paying visitors to use its restrooms and linger in its cafes. The policy, introduced in 2018 following a high-profile discrimination controversy, will now require customers to make a purchase to access facilities or remain on the premises.

The updated code of conduct, set to take effect on January 27, reflects CEO Brian Niccol's strategy to reinvigorate the brand, improve customer experience, and address declining sales. The new guidelines will be implemented across all 11,000 Starbucks locations in North America.

"Starbucks spaces are for use by our partners and customers - this includes our cafes, patios, and restrooms," the company stated. A Starbucks spokesperson added, "By setting clear expectations for behavior and use of our spaces, we can create a better environment for everyone."

The updated rules also ban behaviors such as panhandling, smoking, vaping, and consuming outside alcohol. Employees will undergo training to ensure consistent enforcement of the new policy.

Starbucks adopted its open-door policy in 2018 after an incident at a Philadelphia location sparked public outrage. Two Black men, Rashon Nelson and Donte Robinson, were arrested while waiting for a friend. The incident, widely perceived as discriminatory, led Starbucks to close its stores nationwide for employee racial bias training. The two men later received an undisclosed settlement from the company.

The fallout extended to Starbucks management, with former regional manager Shannon Phillips suing the company over her termination, alleging racial discrimination. Phillips was awarded $25.6 million in damages in 2023.

While the open-door policy positioned Starbucks as a welcoming "third place" between home and work, it created operational challenges. Employees faced safety concerns, and some locations became hubs for disruptive behavior. In 2022, former CEO Howard Schultz cited mental health crises and staff safety as reasons why the company might need to reconsider its restroom policy. That same year, Starbucks closed over a dozen urban locations, citing safety issues.

Niccol's leadership has sought to address these challenges while revitalizing Starbucks' image. He has emphasized returning to the company's roots as a community coffeehouse, focusing on in-store experiences. "There's a shared sense that we have drifted from our core," Niccol said in September. "We're committed to elevating the in-store experience - ensuring our spaces reflect the sights, smells, and sounds that define Starbucks."

In a bid to encourage customers to spend more time in its cafes, Starbucks is introducing new perks for in-store orders. Customers will receive free refills of hot or iced coffee served in ceramic mugs or reusable glasses they bring themselves. Previously, this benefit was limited to members of the Starbucks loyalty program.

The company also hopes the updated policies will create a safer and more comfortable environment for paying customers and employees. Niccol's strategy includes clear behavioral guidelines and efforts to redefine the Starbucks experience as a space for connection and community.

Starbucks' decision comes amid broader discussions about private businesses' roles in providing public amenities. With many U.S. cities lacking adequate public restroom facilities, chains like Starbucks have often filled the gap. However, the strain of accommodating non-paying visitors has pushed some companies to reevaluate their policies.

The updated guidelines align with Starbucks' efforts to balance inclusivity with operational efficiency. While the policy shift may attract criticism, the company hopes it will lead to a more sustainable and welcoming environment for its core customers.