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Starbucks $1bn Community Lounge Overhaul

Financial Times Companies •
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Starbucks is investing $1bn to transform up to 9,000 cafés into “community lounges” with leather armchairs, rugs, and hardback books. The initiative, part of CEO Brian Niccol’s turnaround plan, aims to counter loneliness and digital isolation by fostering human connection. The design shift moves away from the austere post-pandemic aesthetic, contrasting with rivals like Dutch Bros, 7 Brew, and Luckin Coffee, which prioritize speed over seating.

Starbucks has already added 25,000 chairs, including named designs like Viola and Frasca. The upgrades, costing about $150,000 per store, are completed overnight to avoid closures. In Los Angeles, over 200 stores have been redone since 2025.

A Beverly Hills location features easy chairs, a banquette with outlets, bookshelves, and sage green walls. The company is also cutting costs with $2bn in savings planned. Despite layoffs in the design division, Starbucks continues hiring for construction sourcing roles to manage the investment.