And, this time it’s not about higher latte prices.
According to Yahoo Finance, channeling a recent YouGov survey …
Starbuck’s brand image has gotten slammed.
The coffee giant’s consumer perception levels – measured by the YouGov BrandIndex — have fallen by two-thirds since late January.
The timing of the drop coincides with CEO Howard Schultz’s response to President Trump’s executive order … the one intended to slow the flow refugees entering the US.
Schultz announced — with great fanfare — that Starbucks would hire 10,000 refugees worldwide in the next five years.
Take that, Donald!
Also according to YouGov, 2 days before Starbucks’ announcement, 30% of consumers said they’d consider buying from Starbucks the next time they were craving coffee.
Now, the percentage is down to 24%.
What’s going on?
My take …
Apparently, Schultz didn’t learn from his disastrous 2015 “Race Together” initiative.
Remember: baristas were directed to chat up customers on racial tension while they were waiting for their lattes.
That program landed with a thud and was quickly deep-sixed.
Or, maybe Schultz has other motives.
Maybe he’s really concerned about refugees … that’s a possibility.
Or, maybe he’s positioning himself for 2020 … a real possibility since he was reportedly angling for Hillary’s VP slot.
Or, maybe he figures that Starbuck’s image is just fine with his core customers … who are in philosophical alignment.
We’ll see, when the rubber hits the road … when their lattes are being mixed by the new wave baristas.
Then, it’ll be real, not just academic.
It’ll be interesting to watch Starbuck’s sales.