"When Howard Schultz joined-and later acquired-Starbucks in the 1980s, he was deeply inspired by the communal culture of Italian coffee bars. From the beginning, Schultz envisioned Starbucks as more than a transactional stop for coffee. He wanted to build a community-centered space for people to congregate and connect. That vision helped redefine what a coffee shop could be. In recent years, however, that vision has lost momentum."
"Shifts in how and where people work, rising costs, and intensifying competition have challenged Starbucks's dominance in the coffee shop landscape. In New York City, the company recently lost its position as the city's largest coffee chain to Dunkin', according to a report from the Center for an Urban Future. Starbucks has since closed 42 stores in the city-roughly 12% of its New York locations-as part of a broader $1 billion restructuring plan that shuttered 400 metropolitan stores nationwide."
"As part of that reset, CEO Brian Niccol, former CEO of Chipotle and Taco Bell, is attempting to reestablish Starbucks as a true "third place," distinct from both home and work. "The third place is not something we need to reinvent-it's who we are," Schultz said at the Starbucks Leadership Experience 2025. The strategy, branded "Back to Starbucks," calls for a shift away from the grab-and-go model that has dominated in recent years."
Howard Schultz modeled Starbucks on Italian coffee bars to create a community-centered 'third place' where people congregate rather than merely transact. Market shifts—changes in work patterns, rising costs, and intensifying competition—have weakened that positioning and reduced foot traffic. Starbucks lost its status as New York City's largest coffee chain to Dunkin' and closed 42 local stores as part of a $1 billion restructuring that shuttered 400 metropolitan locations nationwide. CEO Brian Niccol is implementing a "Back to Starbucks" strategy to revive the third-place ethos by renovating about 1,000 U.S. stores and emphasizing in-store amenities like comfy seating, couches, and power outlets.
Read at Fast Company
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