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Starbucks' 'Brand Perception' Takes A Massive Hit After Announcing Plans To Hire 10,000 Refugees

Starbucks' 'Brand Perception' Takes A Massive Hit After Announcing Plans To Hire 10,000 Refugees

Tyler Durdens picture
Feb 24, 2017 7:05 PM  Zero Hedge

About a month ago, Starbucks CEO Howard Schultz decided to 'take a stand' in defiance of Trump's immigration executive order and penned a message to the world vowing, among other things, to hire 10,000 refugees over the next 5 years and "build bridges, not walls, with Mexico".  Here are some excerpts from the politically charged message drafted by Schultz with "deep concern and a heavy heart":

I write to you today with deep concern, a heavy heart and a resolute promise. Let me begin with the news that is immediately in front of us: we have all been witness to the confusion, surprise and opposition to the Executive Order that President Trump issued on Friday, effectively banning people from several predominantly Muslim countries from entering the United States, including refugees fleeing wars. I can assure you that our Partner Resources team has been in direct contact with the partners who are impacted by this immigration ban, and we are doing everything possible to support and help them to navigate through this confusing period.

 

Hiring Refugees: We have a long history of hiring young people looking for opportunities and a pathway to a new life around the world. This is why we are doubling down on this commitment by working with our equity market employees as well as joint venture and licensed market partners in a concerted effort to welcome and seek opportunities for those fleeing war, violence, persecution and discrimination.  There are more than 65 million citizens of the world recognized as refugees by the United Nations, and we are developing plans to hire 10,000 of them over five years in the 75 countries around the world where Starbucks does business.

 

Building Bridges, Not Walls, With Mexico: We have been open for business in Mexico since 2002, and have since opened almost 600 stores in 60 cities across the country, which together employ over 7,000 Mexican partners who proudly wear the green apron. Coffee is what unites our common heritage, and as I told Alberto Torrado, the leader of our partnership with Alsea in Mexico, we stand ready to help and support our Mexican customers, partners and their families as they navigate what impact proposed trade sanctions, immigration restrictions and taxes might have on their business and their trust of Americans.

Unfortunately, Schultz quickly found out the hard way that while most adult-aged Americans can agree that they like coffee, roughly 50% disagree with his leftist political opinions.  Which, according to Yahoo Finance, has sent the company's "brand perception" into a downward spiral since January 29th.

The coffee giant's consumer perception levels have fallen by two-thirds since late January, according to YouGov BrandIndex.

 

The perception tracker measures if respondents have "heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative." In Starbucks' case, perception is still overall positive, but significantly lower than it was prior to CEO Howard Schultz published a public letter outlining the company's plans to give refugees jobs.

 

YouGov says that there's reason to believe backlash will impact the chain's bottom line. Two days before Starbucks' announcement, 30% of consumers said they'd consider buying from Starbucks the next time they were craving coffee, the highest proportion in nearly a year. Now, the percentage is down to 24%, according to YouGov.

read more
http://www.zerohedge.com/news/2017-02-24/starbucks-brand-perception-takes-massive-hit-after-announcing-plans-hire-10000-refug

"We are shaped by our thoughts; we become what we think. When the mind is pure, joy follows like a shadow that never leaves."

Comments

  • At least Starbucks CEO will have the consolation that most of his coffee imbibing visitors from now on will be Liberal Mexican University students and conversation will be in line with the beliefs of management.

    "We are shaped by our thoughts; we become what we think. When the mind is pure, joy follows like a shadow that never leaves."

  • tazweisstazweiss Member, Permitted to post new threads
    At least the CEO is open about being so anti-American.

    If the politicians treat people this poorly when they're armed to the teeth,

    just imagine what they'll be willing to do once they've disarmed everyone.

  • Starbucks have Starbucks representation in China.  Notably the big cities like Shanghai and Beijing staffed of course by ethnic Chinese :)  

    "We are shaped by our thoughts; we become what we think. When the mind is pure, joy follows like a shadow that never leaves."

  • Lynsey_ADMIN_Lynsey_ADMIN_ Administrator

    Starbucks CEO Howard Schultz is weeks from stepping down after his anti-Trump vow to hire 10,000 refugees backfired, provoked a boycott by Donald supporters and hit sales

    • Howard Schultz will be replaced as Starbucks CEO by Kevin Johnson on April 3
    • The 63-year-old made the announcement in December and  will remain at the company as executive chairman
    • He will focus on innovation and building up Starbucks' high-end coffee shops
    • Schultz, originally from Brooklyn, has an estimated net worth of $3.1billion
    • He is 'definitely being pursued' as a Democratic presidency candidate in 2020


    Howard Schultz, the current CEO of Starbucks, is weeks away from stepping down from his role at the giant coffee chain next month.

    The move, which was announced in December of last year, comes after his vow to hire thousands refugees in response to President Donald Trump's first travel ban appeared to hurt customer sentiment and dent their sales.

    Trump supporters have called for a boycott of the chain since January 29, when Schultz vowed to hire 10,000 refugees over five years.

    In the announcement that he was stepping down, Schultz said he 'will shift his focus to innovation, design and development of Starbucks Reserve® Roasteries around the world, expansion of the Starbucks Reserve® retail store format and the company's social impact initiatives' and 'focus on Starbucks next wave of retail innovation.'

    Schultz has always been vocal about the need for greater sensitivity in balancing profit margins while advancing socio-economic conscientiousness. 

     He was also a public Clinton supporter and prominent democrat, and even considered as a running mate for the Democratic nominee at one point.


    http://www.dailymail.co.uk/news/article-4329198/Starbucks-Howard-Schultz-step-CEO-April.html
    "Before you embark on a Journey of Revenge, Dig Two Graves" Confucius (504 bc)
    “The darkest places in hell are reserved for those who maintain their neutrality in times of moral crisis.”
    "If angry, count to ten. This will give you time to find a weapon." - Will Spencer
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