The old joke of “a Starbucks on every corner” might be slowing down, but the issues of growing too fast are not new for the coffee giant. CEO Howard Schultz returned to the company during the last period of adjustment, and his current retirement from the company has a familiar feel to it.
Back in May the Seattle City Council unanimously passed the “head tax” under the auspices of raising funds for the homeless. But in the face of opposition from Seattle’s largest businesses, and a certain legal challenge to the law itself, the council has reversed themselves.
Starbucks will be closing around 8,000 company owned stores on the afternoon of May 29th, to give mandantory training to over 175K employees on what the coffee giant is calling “Racial-Bias Education”. The closing and training had been announced weeks ago in the aftermath of an incident in Philadelphia were a Starbuck manager called the police on two black customers sitting in the store
In the words of our own @trumwill, “This will end badly.” Starbucks has announced a new policy that touts anyone can sit on their properties or use the restrooms whether they are a paying customer or not.
Dubbed the “Seattle head tax”, the measure was touted to raise funds, combat homelessness, and build affordable housing by instituting a per-employee tax on companies such as Starbucks and Amazon, among others.
Starbucks and Walgreens have each made a heavy pitch to be beloved by their local communities. So why are the results so very different? Tod Kelly suggests it all comes down to what you truly believe.
A small conundrum comes along with what looks like great news.