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Sunday, February 25, 2007

Schultz is Worried About Starbucks Brand but Forgets The People Behind It

Starbucks Union sees the angle missed by Company Chairman Howard Schultz in his memo to a handful of Starbucks senior officials. The Union says, Schultz is Worried About Starbucks Brand but Forgets to Mention Key Factor: Barista Discontent.

I should add that Schultz takes quality coffee for granted. The leaked document is once again an evidence that the Chairman cares less about the people growing the bean. For Schultz, coffee is naturally brown. Starbucks is taking advantage of the farmers and the company's strategic planners have just gotten the green light to feel good about their "Corporate Social Responsibility" as they prepare the forecast for 2008 .

Schultz is Worried About Starbucks Brand but Forgets to Mention Key Factor: Barista Discontent
Starbucks Union
February 24, 2007

Starbucks Gossip published an internal memo from Chairman Howard Schultz reflecting his concern about damage to the Starbucks brand. Schultz forgot to mention how he's imperiled the brand by refusing positive change for baristas and coffee farmers. For example:

- Management refuses to schedule enough workers on the shop floor to meet customer demand leaving baristas exhausted and customers frustrated.

- Customers are becoming increasingly weary of Starbucks disingenuous socially responsibility spin especially its claim to being a leader in employee health care when it actually insure a lower percentage of its workforce than notorious Wal-Mart (47% vs. 42%).

- Wage caps at Starbucks are driving out the senior baristas whom customers know well and appreciate.

- By refusing to sign a voluntary licensing agreement to increase the earnings of Ethiopian coffee farmers, Starbucks undermines its stated commitment to farmers and damages the company's credibility overall.

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