What Would Starbucks Do? Navigating a PR Crisis

Known for its exceptional coffee and warm ambiance, Starbucks found itself in a challenging predicament, putting its beloved brand on the line.

How a company tackles adversity can send ripples throughout its customer base, sway shareholder trust, and determine its ultimate triumph.

Let’s dive into Starbucks' playbook for crisis management, dissect the effectiveness of their tactics, and unearth invaluable insights that can guide other businesses through comparable trials.

The Brand Image

Starbucks has skillfully crafted a renowned image as a bastion of exceptional coffee and a welcoming haven. The company's brand essence is intertwined with its coffee mastery, dedication to ethically sourced beans, and unwavering commitment to social and environmental responsibility. It's not just a coffee shop; it's your "third place" where you can unwind, get some work done, or catch up with friends over your favorite brew. And you can't miss their famous green Siren logo, it's like an old friend who's always there to welcome you.

What sets Starbucks apart is their exceptional customer service and the warm, inclusive vibe they foster. They've become a symbol of premium coffee experiences, a brand that's embraced by coffee lovers worldwide.

The Crisis

The Starbucks crisis revolved around a pivotal incident in one of its stores, igniting a firestorm of controversy and public outcry. In the spring of 2018, a video emerged on social media, unveiling the distressing scene of two gentlemen of African descent being apprehended at a Starbucks establishment in the heart of Philadelphia.

The incident unfolded when these two individuals, who were merely awaiting a friend, found themselves denied access to the store's restroom. This unfortunate situation prompted the store manager to involve law enforcement, asserting that the gentlemen were trespassing. The viral spread of this video shone a spotlight on deeply concerning matters of racial profiling and discrimination.

To understand the origins of this crisis, one must look to a blend of store policies and employee training practices. Notably, Starbucks had a policy in place, mandating that individuals who did not make a purchase were required to do so before using the store's facilities.

The Impact

In the immediate aftermath of the video's circulation, a groundswell of public criticism erupted, accompanied by allegations of racial bias and calls for a Starbucks boycott.

This occurrence triggered protests, garnered extensive media attention, and inflicted a significant blow to the company's reputation. Starbucks, known for its long-standing commitment to inclusivity and providing a welcoming environment, suffered considerable damage to its image.

Furthermore, the incident brought to the forefront broader issues concerning racial inequality and discrimination within the retail sector, compelling Starbucks to address these systemic challenges directly.

This crisis not only presented an immediate challenge to Starbucks' public image but also served as a crucial test of the company's crisis management capabilities.

So…

What Did Starbucks Do?

• Prompt Measures: Recognising the urgency of the situation, Starbucks acted swiftly in response to the crisis. Within just 24 hours of the incident, the company's CEO, Kevin Johnson, publicly extended his apology to the affected individuals, expressing deep regret for the unfortunate events that had transpired.

  Starbucks promptly took action by announcing the temporary closure of over 8,000 company-owned stores across the United States for a half-day of racial bias training. This decisive move showcased their commitment to addressing the underlying issues and putting concrete measures in place to prevent similar incidents in the future.

• Engaging Communication Channels: Starbucks employed an array of communication channels to gracefully address the crisis at hand. The company gracefully harnessed the power of popular social media platforms like Twitter and Facebook to artfully disseminate its messages. Starbucks extended warm public apologies and offered timely updates on its official social media accounts, fostering direct engagement with both customers and the general public.

  In addition, the CEO and Chairman gracefully participated in several media interviews to elegantly convey the company's stance and unwavering commitment to resolving the crisis. Starbucks also gracefully utilised traditional media outlets, issuing polished press releases and official statements, ensuring a broad and cohesive message across diverse communication channels. This elegant and comprehensive approach sought to deliver prompt, transparent information while delicately engaging with stakeholders during the challenging times.

• Employee Training and Policy Improvements: Starbucks demonstrated an acknowledgment of the imperative to embrace inclusivity and eliminate implicit bias among its dedicated workforce. So, they rolled out an extensive training program with a strong focus on raising awareness and preventing racial bias.

  This effort, aptly named "Starbucks Bias Training," meant temporarily shutting down over 8,000 company-owned stores across the United States for half a day. This allowed 175,000 employees to partake in valuable racial bias education. These training sessions were carefully designed to help employees recognise their unconscious biases, nurture empathy, and equip them with the right tools to ensure that everyone feels included and welcomed in their stores.

• Restoring Trust and Reputation: When an organisation faces a crisis or significant challenges, the journey to rebuilding trust and reputation is a crucial one. It's like stitching back together the fabric of credibility, image, and faith in the eyes of those who matter most. This involves setting in motion long-term strategies aimed at regaining the trust of stakeholders, reviving a positive brand image, and reinstating confidence in the organisation's values and actions.

  Starbucks, in its quest to heal and restore, extended its reach into local communities and engaged in various social initiatives. They rolled up their sleeves, actively participating in community events, lending their support to local organisations, and sparking social impact programs. These initiatives were a testament to Starbucks' dedication to social responsibility and their earnest desire to be a positive force within the communities they serve.

  Throughout the crisis and beyond, Starbucks kept the lines of communication open, maintaining a consistent message and brand identity. They remained committed to their principles of diversity, inclusivity, and social responsibility. By continuously reinforcing these values in both their messaging and actions, Starbucks aimed to rebuild trust and ensure that their brand image harmoniously resonated with their core values.

  The role of Howard Schultz, Starbucks' Chairman, was pivotal in steering the company through these tough times. Here's how he made a difference:

  Swift Response and Accountability: No time was wasted in response to the crisis. Just days after the incident, Schultz made a public apology, expressing his deep regret for what had occurred in the Philadelphia store. He did not mince words in acknowledging the gravity of the situation, stating that the incident was "reprehensible" and "wrong." This immediate response sent a clear message that Starbucks was ready to own up to its mistakes and make things right.

  Connecting with the Community: Schultz knew it was crucial to engage with the community and genuinely address the concerns of those affected by the incident. He personally met with Rashon Nelson and Donte Robinson, the two men who had been wrongfully arrested, and offered a sincere apology. Schultz didn't stop there; he continued to have conversations with community leaders, activists, and Starbucks employees to gain insights and find solutions to the issue of racial bias.

  Leading the Charge for Positive Change: Schultz took on a pivotal role in driving meaningful changes within Starbucks to prevent future incidents and create a more welcoming environment. He was the driving force behind the decision to close stores for racial bias training, emphasising the importance of educating and raising awareness among employees. Schultz also threw his weight behind revising company policies and guidelines to root out any potential biases and ensure fair treatment for all customers.

  Preserving the Starbucks Legacy: As the Chairman, Schultz had a deep appreciation for the Starbucks brand and its long-term vision. Throughout the crisis, he made sure that the company's actions were in sync with its core values and overarching goals. By prioritising the preservation of Starbucks' brand reputation and staying committed to social responsibility, there was a possibility to steer the crisis management strategy in the right direction.

  Parting Thoughts

  The Starbucks crisis management case study is a treasure trove of insights on how a company can navigate a tough situation that threatens its reputation and brand. It's like a guidebook that shows us the ropes. It tells us that responding quickly, being transparent in your communication, and taking proactive steps to tackle the real issues are crucial. Starbucks owned up to their mistakes, trained their employees, and tweaked their policies to create a more inclusive environment.

  Now, here's the good part. We can all learn from this case. Businesses, big and small, in any industry, can use these lessons to prepare themselves for a crisis, keep their reputation intact, and make sure their stakeholders keep the faith. It's all about being ready for the storm, communicating openly, training your team, reviewing your policies, and holding your leaders accountable. These lessons are like a roadmap to crisis management success.