Back in January, Starbucks CEO Howard Schultz promised to hire 10,000 refugees over the next five years in retaliation to President Donald Trump’s strict immigration policies. In Schultz effort to stick it to the President, he may have damaged the future of Starbucks. After the politically charged refugee initiative was announcement conservatives vowed to boycott Starbucks. A couple of months since has proven that the company’s brand has reportedly taken a devastating hit.
The company YouGov BrandIndex analysis and tracks public perception of thousands of brands. They found that consumer perception of Starbucks took a walk off a short cliff after the refugee stunt. YouGov BrandIndex also uses what they call a “Buzz score” to keep track of companies ratings. Starbucks’ “Buzz score” points dropped by two-thirds between January 29 and February 13. CEO Ted Marzilli of YouGov BrandIndex told The Daily Mail that consumers perception of Starbucks “dropped almost immediately” after the refugee announcement. According to YouGov, Currently, only 26 percent of consumers say they would buy from Starbucks. And that number is only slightly better than the lowest point when just 24 percent.
With those kinds of numbers, the future for Starbucks is looking as grime as their UC-Berkeley location after far-left protesters were done with it.
Jason West, Analysts for Credit Suisse found similar data, telling CNBC that Starbucks saw a “sudden drop in brand sentiment following the announcement of the refugee hiring initiative on Jan. 29th, to flattish from a run-rate of ~+80 (on an index of -100 to +100).” West stated, “Net sentiment has since recovered, but has seen significant volatility in recent weeks.”
The numbers prove that Americans would like their coffee without a side order of politics.
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