Starbucks’ ‘Open-Door Policy’ Reversal, Explained—Why It Matters

15 Jan 2025 by Stephanie Gravalese · Forbes

Third spaces like coffeehouses are more than places to grab a drink—they’re cultural hubs where ... [+] communities connect.Getty Images

What happens when your neighborhood coffee shop tightens its doors? Starbucks, long synonymous with the idea of a “third place” between home and work, has reversed its open-door policy. Now, only paying customers can use its spaces. This change raises important questions: What does this mean for coffeehouses, for the concept of third places, and for the way we connect over food and drink?

Why Did Starbucks Reverse Its Open-Door Policy?

On January 13, 2025, Starbucks announced its decision to reverse its open-door policy, marking a significant shift in its operations. The new policy, effective January 27, will be displayed in all stores and includes a detailed code of conduct. It bans discrimination, harassment, outside alcohol consumption, smoking, vaping, drug use, and panhandling.

This reversal comes nearly seven years after Starbucks introduced the open-door policy in 2018, following public outcry over the controversial arrests of two Black men at a Philadelphia store. That incident sparked conversations about racial bias and access to public spaces. Starbucks framed the original policy as a commitment to inclusivity, allowing anyone to use its spaces regardless of whether they made a purchase.

Now, the company is taking a different approach. Jaci Anderson, Starbucks’ director of corporate communications, explained the rationale in a statement:

“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. 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.”

Safety concerns have driven some of these changes. In 2022, Starbucks closed 16 stores in major cities, citing issues such as drug use, disruptive behavior, and employee safety. The company’s new policy aims to address these challenges and create a more controlled and welcoming environment—reflecting broader industry trends where other retailers have adopted similar measures.

What Are Third Places, And Why Are They Important?

Third spaces like coffee shops are more than places to grab a drink—they’re cultural hubs where ... [+] communities connect.getty

Sociologist Ray Oldenburg coined the term “third place” to describe places where people gather outside the home and workplace to build community and share experiences. Coffeehouses, pubs and libraries have long served as quintessential third places, fostering creativity, conversation, and connection.

Starbucks popularized the third-space concept globally, embedding it into its brand identity. By offering free Wi-Fi, comfortable seating, and a welcoming atmosphere, Starbucks became a go-to spot for everything from casual meetings to remote work. For decades, it showcased how food and beverage spaces could transcend consumption to become cultural hubs.

But even Starbucks has had to adapt. Rising operational costs, shifting consumer habits, and digital alternatives have reshaped how third places exist today.

Are America’s Third Places Disappearing?

Rising costs, shifting habits, and the pandemic have accelerated the decline of third spaces across ... [+] the U.S.getty

The decline of third places in America is not new, but its impact is growing. These spaces play a vital role in fostering social connections and supporting community well-being.

In 2019, a study published in Health & Place emphasized how third places—like coffee shops and hair salons—helped reduce loneliness and stress, creating informal networks of support.

But even before the pandemic, closures of these spaces were on the rise, leading researchers to warn about the potential consequences for public health.

COVID-19 exacerbated the problem.

A 2023 study in The Journal of Transport & Health found that pandemic-era third-space closures negatively affected mental health, especially among marginalized groups. Dissatisfaction with virtual alternatives worsened the problem, particularly for non-white, LGBTQ+, and low-income individuals.

Several factors continue to threaten third places today:

Efficiency Over Community: Mobile ordering, drive-throughs, and delivery apps prioritize speed and convenience over in-store ambiance.
Economic Pressures: Rising rents, labor costs, and thin margins have forced many independent coffeehouses to close, leaving chains like Starbucks as the primary providers of gathering spaces.
Post-Pandemic Shifts: More people are opting for takeout or working remotely, reducing foot traffic to physical spaces.

The result? Fewer opportunities for casual, unstructured interactions. A 2024 article from the Congress for the New Urbanism (Public Square) warned that the disappearance of these spaces threatens the social fabric of communities but also offered solutions—such as mixed-use developments and zoning reforms—to address the issue.

What Could This Policy Change Mean for Third Places?

Starbucks’ move toward efficiency reflects a broader trend prioritizing convenience over community.Denver Post via Getty Images

Starbucks’ decision reflects a broader shift toward efficiency and profitability, signaling a move away from its traditional role as a community hub.

One key indicator is its growing reliance on drive-thrus. As of 2023, 70% of Starbucks’ 9,300 corporate U.S. stores featured drive-thru lanes, according to CFO Rachel Ruggeri. Speaking at the TD Cowen Future of the Consumer Conference, Ruggeri noted that these locations generate the highest return, underscoring the company’s focus on convenience.

This pivot challenges Starbucks’ role as a leisurely third place, positioning it instead as an efficient quick-service chain catering to on-the-go consumers. While this model boosts financial performance, it may come at the expense of the cultural and social connections coffeehouses have historically provided.

Where Do We Go From Here?

As Starbucks evolves, independent cafes and innovative spaces may redefine the future of third ... [+] spaces.Getty Images

The shrinking of third places doesn’t mean their disappearance—it signals an opportunity for reinvention. As Starbucks evolves, other food and beverage spaces might step in to fill the void.

Independent Cafes: Locally-owned coffeehouses can offer personalized, community-centered experiences that Starbucks’ current model may lack.
Multifunctional Spaces: Blending dining, coworking, and events could redefine the concept of third places for modern consumers.
Digital Third Places: Online platforms, while lacking physical presence, may offer new ways to foster connection.

Starbucks’ policy reversal highlights a broader cultural shift, but it doesn’t diminish the timeless need for spaces where people can connect, converse, and unwind.

A Shift in How We Connect

As Starbucks redefines its role, one question remains: How do we preserve the essence of third spaces in a world driven by efficiency?

Whether through independent cafes, innovative hybrid spaces, or nostalgia for simpler times, third spaces will continue to evolve. They remind us of a simple truth: Our need to gather over food and drink is as old as culture itself—and just as vital to our future.