Starbucks has announced a major shift in its code of conduct, officially ending the long-standing policy that allowed non-paying customers to sit and stay at their locations without making a purchase.
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New Policy Prioritizes Paying Customers
In a statement to media, Jaci Anderson, Starbucks’ director of corporate communications, explained the motivation behind the policy update:
“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.”
The new policy, effective January 27, 2025, will apply to over 10,000 company-owned Starbucks locations across North America, excluding licensed stores in airports, Target, and other third-party venues.
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Previous “Third Place Policy” Repealed
The change marks the end of the “Third Place Policy”, which previously allowed guests to use Starbucks spaces, including restrooms, cafes, and patios, without requiring a purchase. The policy was implemented in 2018 following national controversy when two Black men, Rashon Nelson and Donte Robinson, were arrested at a Philadelphia Starbucks for trespassing while waiting for a business meeting without making a purchase.
The arrest sparked nationwide protests, accusations of racial bias, and calls for a boycott. Starbucks responded by closing 8,000 stores for employee racial bias training.
At the time, former CEO Kevin Johnson condemned the incident as “reprehensible” and publicly apologized to Nelson and Robinson, who later settled with Starbucks and the city. The city settlement was for a symbolic $1 each, while the city pledged $200,000 toward programs supporting young entrepreneurs.

Why the Policy Change Now?
The decision to revise the policy comes amid a broader corporate reset under new CEO Brian Niccol, who joined the company from Chipotle in September 2024. Niccol has been working to boost sales after Starbucks experienced a 7% global sales decline in Q4 2024.
The updated Code of Conduct will be clearly displayed in all stores and aims to create a better environment for both customers and employees while keeping the “third place” philosophy of being a welcoming community space.