Starbucks racial bias row: Will closing 8000 stores on May 29 fix the issue?
Following this incident, the US coffee chain apologized on Twitter by saying, We regret that our practices and training led to the reprehensible outcome at our Philadelphia store. Further, it added, Were taking immediate action to learn from this and be better. Starbucks CEO Kevin Johnson, who expressed his regret about the incident, reportedly said, Ive spent the last few days in Philadelphia with my leadership team listening to the community, learning what we did wrong and the steps we need to take to fix it.
In an attempt to offer a "safe space" to customers, the US coffee chain, Starbucks, has announced that it will close 8,000 stores on May 29 to provide its employees with racial-bias training. This announcement was greeted by a storm of headlines and a flurry of social media commentary. Starbucks is at the centre of a social media storm prompted by a Philadelphia cafe manager`s decision to call police on the two men, who had not made a purchase and were waiting on a friend. They were released without charges, said a Reuters report.
Following this incident, the US coffee chain apologized on Twitter by saying, “We regret that our practices and training led to the reprehensible outcome at our Philadelphia store.” Further, it added, “We’re taking immediate action to learn from this and be better.” Starbucks CEO Kevin Johnson, who expressed his regret about the incident, reportedly said, “I’ve spent the last few days in Philadelphia with my leadership team listening to the community, learning what we did wrong and the steps we need to take to fix it.”
“While this is not limited to Starbucks, we’re committed to being a part of the solution. Closing our stores for racial bias training is just one step in a journey that requires dedication from every level of our company and partnerships in our local communities,” Kevin added.
Meanwhile, the company turned to long-time leader Howard Schultz on Wednesday to make the case that the US coffee chain accused of racial profiling is committed to offering a "safe space" to customers.
Closing 8,000 company-owned cafes on the afternoon of May 29 "to do significant training with our people is just the beginning of what we will do to transform the way we do business and educate our people on unconscious bias," Schultz, Starbucks` co-founder and executive chairman, reportedly told CBS This Morning.
According to Reuters, Howard Schultz joined CEO Kevin Johnson and other executives for a meeting with Philadelphia clergy and community leaders later in the day. Schultz`s appearance on Wednesday marked his return to the limelight after stepping down as CEO last year. Daily management has been left to Johnson, who lacks his predecessor`s experience with social issues and damage control.
Video of the Philadelphia arrests spawned protests and calls for boycotts at the chain whose US traffic has flattened in recent years because of intense competition.
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Wedbush analyst Nick Setyan reportedly said that closing 8,000 stores for training on May 29 could result in $5 million to $7 million in lost sales. Starbucks directed cafe employees to welcome customers, protesters and people who are "visiting for any reason", said the Reuters report.
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