Starbucks India retains welcome mat, no plans to restrict restroom and facility access amid global changes

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Starbucks is unlikely to implement any policy in India to restrict restroom use or access to its facilities without a purchase, the American coffeehouse chain told Moneycontrol in an emailed statement.

Starbucks this week reversed a policy it introduced in 2018 that allowed people to hang out in its coffee shops even if they had not bought something. The recent policy shift occurred in North America, where Starbucks announced that customers must make a purchase to use its amenities, a significant departure from its earlier inclusive policy.

"The Coffeehouse Code of Conduct impacts company-owned stores in the US and Canada (North America) only. There is no plan to implement similar changes in other parts of the world at this time," said a spokesperson for Starbucks' global operations.  Starbucks India operates as a 50:50 joint venture between Starbucks Corporation and Tata Consumer Products, under the brand name Tata Starbucks Private Limited. Established in 2012, the coffee chain has more than 450 outlets in the country.

However, despite being the largest such chain in India, the company is adjusting its expansion plans , as fewer customers are walking into its cafes, Tata Consumer CEO Sunil D'Souza told Reuters in December last year.  Indian consumers are scaling back on discretionary spending as persistent inflation puts pressure on middle-class budgets. Products like premium coffee and café treats are increasingly being perceived as indulgences rather than everyday essentials.

"Traffic is the issue, ticket size is not, because once the consumer enters, we do see spending happening. Revenue grew only 2 percent," D'Souza said in a post-earnings call in November.

The latest policy change in North America, set to take effect on January 27, is reportedly aimed at addressing declining sales. However, it will not directly affect international markets (including India) at this time, the company's Asia-Pacific spokesperson said in an emailed statement.

"We want everyone to feel welcome and comfortable in our stores. Implementing a Coffeehouse Code of Conduct is something most retailers already have and is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit. This means our cafes, patios, and restrooms are for customers and partners. By setting clear expectations for behavior and use of our spaces, we can create a better environment for everyone. These updates are part of a broader set of changes we are making to enhance the cafe experience as we work to get back to Starbucks," the Starbucks statement added.