Starbucks Corp (NASDAQ:SBUX) stock rose 6.40% (As on January 29, 11:21:13 AM UTC-4, Source: Google Finance) after the company’s quarterly sales declined less than expected, signalling that the customer retreat that had rattled the coffee chain is starting to subside. Same-store sales fell 4% in the fiscal quarter ended December 29. That’s an improvement from the 7% slump Starbucks reported in the prior quarter and a smaller decline than analysts polled by Bloomberg were anticipating of 5.5%.

Moreover, Starbucks is looking to prioritize customers and improve the in-store experience, starting with the US and Canada. As part of those efforts, the company has started restricting cafe access to paying customers and their guests, a reversal from an open-door policy that was adopted in 2018 after two Black men were arrested for waiting in a Philadelphia store without ordering. The new rules have divided baristas. The company is also looking to cut 30% of its food and beverage lineup, Niccol said. He wants to simplify baristas’ jobs to help customers who order in-store to get their drinks in four minutes or less. There’s also a feature in development for the company’s app that would let customers select a pick-up time slot. The company is planning to lay off corporate workers by early March. Niccol said in an earlier memo announcing the cuts that Starbucks has too many layers of management and there needs to be more clarity on who makes decisions and is accountable for achieving goals. Starbucks in October suspended guidance for the fiscal year that started September 30, saying the move would give Niccol a chance to assess the business and solidify a turnaround plan.

In addition, Starbucks is trying to reestablish itself as a gathering place, and this week announced that it will start using ceramic mugs and offering in-store customers free refills of coffee or tea. The company is also trying to appeal to customers with a new rule that requires people to buy something if they want to hang out or use the restroom.

SBUX in the first quarter of FY 25 has reported the adjusted earnings per share of 69 cents, beating the analysts’ estimates for the adjusted earnings per share of 67 cents. The company had reported the adjusted revenue of $9.4 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $9.3 billion. US same-store sales also fell 4 percent in the first quarter. China’s same-store sales fell 6 percent in the fiscal first quarter.