Struggling Starbucks: Why the Expensive Renovations Encouraging Longer Stays Aren't Paying Off (Comparison Between Japan and Overseas)

In response to the global decline in same-store sales that began in 2024, Starbucks has launched a major renovation initiative under the slogan "Back to Starbucks," focusing on expanding seating, improving comfort, and refreshing store layouts to encourage longer visits. By the fall of 2025, the international division's recovery led to a positive turn in same-store sales for the first time in seven quarters. However, sales in the U.S. remained flat, and profits were pressured by restructuring costs, including layoffs and store closures, amounting to around 100 billion yen. This indicates that "investment in space ≠ immediate recovery." In Japan, the "third place" concept remains strong, with unique landscape-conscious stores and diverse seating options being well-received. In contrast, in the U.S., the impact of inflation has led to dining-out savings, a focus on mobile orders and drive-thrus, and an operational inertia that prioritizes turnover, which offsets the effects of renovations. Restoring seating capacity is a crucial step in reclaiming the brand's roots, but to achieve results, it is necessary to redesign who will stay longer, when, and for what purpose in each region. This involves optimizing the menu, pricing, pick-up experience, staff allocation, and turnover KPIs. In the short term, increased costs will pressure profits, making it difficult to see immediate results, but in the medium term, the ability to "monetize the value of staying" will be the key to success.