Starbucks burned by social-justice appeasement as growth stalls, stock plunges

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Posted 6/21/18 , edited 6/21/18
This is what happens when you try to appease the SJW's. They make absurd demands from you, try to make you follow their false logic which changes weekly, whatever you do is never enough, and then don't buy your shit because they don't have any money. Good job starbucks you destroyed yourself.

https://www.washingtontimes.com/news/2018/jun/20/starbucks-burned-social-justice-appeasement-growth/


Starbucks may have appeased progressives with its social-justice workshops and open-bathroom policy, but such moves have failed to caffeinate the company’s bottom line.

The coffee giant’s stock took a tumble Wednesday after CEO Kevin Johnsonannounced that Starbucks would close 150 company-owned stores next year instead of the expected 50, with an emphasis on underperforming shops in densely populated urban areas, and lowered growth projections.

Mr. Johnsonacknowledged that the decision to shut down 8,000 U.S. stores on May 29 for anti-bias training, driven by the high-profile arrests of two black men in Philadelphia, played a role in the company’s sluggish second-quarter performance.

“In this current quarter, certainly we had an unplanned initiative driven out of the Philadelphia incident, we closed all our stores for training, we had to delay some marketing, but none of that is an excuse,” Mr. Johnson told CNBC. “The fact is the way I think about a growth company at scale is we’ve got to deliver consistent growth, month after month, quarter after quarter, and year after year. And we have not done that.”

In response, Starbucks announced steps to streamline the company and increase its agility by “accelerating product innovation,” “leveraging the growing tea and refreshment category,” and responding to trends toward “health and wellness.”

The market wasn’t impressed. Starbucks shares fell Wednesday by 10 percent, hitting their lowest point in 52 weeks, while Morgan Stanley downgraded the company’s investment rating, citing flat growth in China and the decision to lower third-quarter U.S. growth projections from 3 to 1 percent.

Meanwhile, critics of the company-wide diversity workshops argued that Starbucks sent the wrong signal by bowing to social-justice protesters instead of tending to its business model.

“One would think Starbucks shareholders would be better served by leadership that prioritizes sound business principles over so-called social justice initiatives,” said Robert Kuykendall, spokesman for 2ndVote, a conservative corporate watchdog.

...

https://www.washingtontimes.com/news/2018/jun/20/starbucks-burned-social-justice-appeasement-growth/



It's going to be fun watching this giant shit storm in the future. Now the homeless can take hobo baths at starbucks and live in their stores. Maybe it will be good for virtue signaling liberals to spend some time with the people they virtue signal about.



Another problem with city stores: They tend to be magnets for homeless people and panhandlers, an issue that may bedevil Starbucks as a result of its May policy change requiring all stores to provide restroom and table access to non-paying guests.

The open-bathroom policy also comes with Starbucks trying to win back customers from upscale competitors by unveiling 20 to 30 Roastery and Tasting Rooms, which feature bean-roasting on-site, offer exclusive drinks, and promote its Reserve brand.

CNBC analyst Jim Cramer, who owns a restaurant in Brooklyn, asked Mr. Johnson how Starbucks can meet its targets when many stores may need to add employee shifts to keep a closer eye on restrooms.

“I know that when we have bathrooms that are not clean, when we have people who want to use the bathroom, and yes, they are not going to pay, I totally get that, but we have to add a shift member, and it hurts our profitability,” said Mr. Cramer. “I cannot believe that the licensees didn’t see that, too.”
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Posted 6/21/18 , edited 6/21/18
Looks like this CEO, Kevin Johnson is just using the falling sales growth to push his own opinions.

A quick five minutes of research indicates that it's a combination of other businesses (like McDonalds) expanding their own caffeinated offerings, and Starbucks shops themselves poaching business away from each other (no surprise there). Anyways, considering they have almost 14,000 shops in the US, it doesn't seem like that big a deal.
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Posted 6/21/18 , edited 6/21/18

Mishio1 wrote:
Looks like this CEO, Kevin Johnson is just using the falling sales growth to push his own opinions.

A quick five minutes of research indicates that it's a combination of other businesses (like McDonalds) expanding their own caffeinated offerings, and Starbucks shops themselves poaching business away from each other (no surprise there). Anyways, considering they have almost 14,000 shops in the US, it doesn't seem like that big a deal.


Wait, are you suggesting the reality of situation isn't how a Ruji thread presented it?

>.>
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Posted 6/21/18 , edited 6/21/18
since Starbucks coffee is nasty by default and costs too much perhaps that is what destroyed them. after all too much caffeine is bad thing on two fronts, can cause health issues both during (heart attacks) and later (cancer). not the normal coffee down here for us poor folks, but implying those double and triple shot espressos, etc. at least now people can use the bathroom and shoot up to beat the heat/cold so it's a win/win.
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Posted 6/21/18 , edited 6/21/18

runec wrote:


Mishio1 wrote:
Looks like this CEO, Kevin Johnson is just using the falling sales growth to push his own opinions.

A quick five minutes of research indicates that it's a combination of other businesses (like McDonalds) expanding their own caffeinated offerings, and Starbucks shops themselves poaching business away from each other (no surprise there). Anyways, considering they have almost 14,000 shops in the US, it doesn't seem like that big a deal.


Wait, are you suggesting the reality of situation isn't how a Ruji thread presented it?

>.>


Shocking, I know.
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Posted 6/21/18 , edited 6/21/18

Rujikin wrote:

This is what happens when you try to appease the SJW's.


Uh. No.
This is what happens when a growth company begins to mature, naturally.
In fact, this is probably the best time to purchase stock in "SBUX" (Starbucks) due to their promise to return around $25b to shareholders in the form of dividends and buybacks by 2020.
Their forward yield is at 2.7% with 20% dividend yield growth prospect? Yes, please.
SBUX will be rocky for a while with Schultz leaving in five days, but not something too heinous.

Blaming it on their "appeasement of the SJWs" is just some kind of faulty "let's make this political" logic.
SBUX has been shaky long before their "Philidelphia Issue" - it just impacted their quarterly sales.
Whoever didn't expect SBUX to fall in the light of lower quarterly sales and Schultz leaving would have to have been blind, since SBUX has been struggling to find their ground for over a year now.
Their plan is to expand some of the "local shop" logic into their Starbucks stores - roasting their own beans, crafted drinks that reflect local flavors, etc. over the next year or two.
This means they're going to have to close stores that aren't pulling in enough profits on their own or are too close to a "hub store" that will be switching to this model.
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Posted 6/21/18 , edited 6/21/18

Starbucks may have appeased progressives with its social-justice workshops and open-bathroom policy, but such moves have failed to caffeinate the company’s bottom line.


That pun is bad, and the writer should feel bad.

WTF is with the "edited ___ hours from now" notes? This just in; CR is psychic.
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Posted 6/21/18 , edited 6/21/18

Cardamom_Ginger wrote:
WTF is with the "edited ___ hours from now" notes? This just in; CR is psychic.


Its been doing that since the last maintenance. Presumably something wrong with the clock used to set timestamps, or something.
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Posted 6/21/18 , edited 6/22/18

Mishio1 wrote:



Its been doing that since the last maintenance. Presumably something wrong with the clock used to set timestamps, or something.


Thanks. I hadn't noticed until this thread.
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Posted 6/24/18 , edited 6/24/18
I read recently somewhere that there are an average of 4 Starbucks stores within a mile radius of ANY GIVEN STARBUCKS. I live in a city and I have seen as many of three in a quarter square mile. I know of one street where there's two Starbucks stores on the same side of the street- about a mile from the other. That kind of over-saturation of brick&mortar stores is what's hurting them- these stores are now effectively competing with each other for business. They overexpanded. And yet I haven't been to one yet that wasn't busy doing business. If the Open-Door to non-consumer policy was going to hurt them, it would take time. Not like a month.
The problem is the people who most hate their stance and hate Starbucks were never going to be customers anyway. So they haven't lost any customers- and if they begin to, it will take time before the data gets back to corporate management, and then gets public enough to harm their stock price. Seriously those kind of market reactions take years, not months.

I don't typically patron Starbucks- and this policy wouldn't keep me away. But it WOULD if I go into Starbucks more than once and am accosted by vagrants. Nobody wants that. It's the reason I never go into public libraries anymore.
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Posted 6/24/18 , edited 6/29/18
The Starbucks in my neighborhood is worse it's a homeless camp it so smelly and filthy I go elsewhere for my coffee.
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