Starbucks announces new free refills policy, and more news ahead of earningsStarbucks announces new free refills policy, and more news ahead of earnings

Before Starbucks Corp. reports its first-quarter earnings of 2025 on Tuesday, there are several changes and updates to note, including a newly announced refill policy for café customers and insights into last year’s performance from the company’s newly released annual report.

Here are five things to know before Starbucks reports its first-quarter earnings:

Starbucks updates refill policy with café customers in mind

While Starbucks has been offering free refills of hot and iced coffee and tea for in-café Starbucks Rewards members for quite some time, the company is now expanding that policy to non-rewards members, effective Jan. 27.

According to Starbucks, customers who ask to enjoy their order “for here” will have their beverage served in a reusable ceramic mug or glass or a receptacle the customer brought from home.

During their in-café visit, customers can ask for free refills of hot brewed or iced coffee, or hot or iced tea. In-café or to-go customers can both take advantage of the newly returned condiment bar (with creamer, milk, and sweeteners) which was one of the third place-centric policies CEO Brian Niccol has brought back.

Expanding this free refill policy to non-rewards customers hits on three Starbucks goals simultaneously: shifting the focus away from just marketing to rewards members, embracing café culture again, and encouraging eco-friendly habits. 

Related:Starbucks to shrink menu by 30%, add smart tech to fix operational woes

The chain updated its coffeehouse code of conduct

As previously reported, Starbucks updated its code of conduct for customers and employees earlier this month. In more detail, the revised list of guidelines makes it clear that cafes “are for use by our partners and customers,” including bathrooms, which have switched back to being closed to the general public.

The rules also clarify the company ban on “misuse or disruption” of café spaces, discrimination, harassment, violence, abusive language, alcohol, smoking, drug use, and panhandling.

In effect, this updated policy addresses concerns by Starbucks customers and staff over the years pertaining to safety issues around non-customers using drugs in the bathrooms. 

Starbucks China CEO and chair Belinda Wong retires

Starbucks China CEO and chair Belinda Wong has retired after nearly 25 years with the company, as first reported by Yicai Global. Starbucks first announced Wong’s retirement in September in tandem with the promotion of Molly Liu’s promotion to CEO of the company. Liu had previously served as co-CEO with Wong. 

Wong has held the position of CEO of Starbucks China since 2011 and is retiring amid a time of uncertainty for the coffee chain’s largest international market.

Related:Egg prices rise against expected modest inflation backdrop

In recent years, Starbucks has struggled to compete with newer coffee brands, particularly Luckin Coffee. There have been growing rumors that Starbucks will divest from its China division,Last month, the division hired its first chief growth officer.

Brian Niccol earned more than $95 million in four months in 2024

While Starbucks CEO Niccol’s $1.6 million base salary and $10 million signing bonus were already known, the extent of the new CEO’s earnings in just four months in the 2024 fiscal year was revealed in the coffee chain’s annual report.

As first reported by the Wall Street Journal, Niccol earned $61,538 in his first four months on the job, but the real bulk of his earnings came from the first of a two-part $5 million signing bonus (with the second part coming in March), and $90 million in stock awards.

Shareholder calls for a report on ‘human rights risks’ related to unions

As Starbucks prepares for its annual shareholders’ meeting in March, the company is asking shareholders to vote against most new and noteworthy shareholder proposals, including a seemingly anti-union proposal that brings up a question of “human rights risks” related to union organizing.

Related:How White Castle plans to grow under outside leadership

The shareholder proposal accuses Starbucks union Workers United of “salting” or “planting” activists at company cafes and calls the union organizers “antagonistic” while calling for an investigation into human rights risks allegedly caused by the union.

Starbucks, which has been accused in the past of anti-union tactics, has asked shareholders to vote against this proposal.

Contact Joanna at [email protected]