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Starbucks - calling police to remove customers

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Starbucks - calling police to remove customers

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In 2018 Starbucks found itself in hot water on April 12 that had nothing to do with brewing coffee.

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Starbucks found itself in hot water on April 12 that had nothing to do with brewing coffee. The manager at a downtown Philadelphia location of the popular chain called police to report two black men were sitting in the shop, waiting for a colleague. The two men were arrested, and held until the early hours of the next morning.

Condemnation of the arresting officers and the manager, who claimed company policy reserves seats for paying customers, highlighted a disconnect between Starbucks' image as a progressive, inclusive company and the way these men of color were treated. For communicators, this crisis offers substantial takeaways about the need for timely accountability and the power of social listening.

@Starbucks The police were called because these men hadn't ordered anything. They were waiting for a friend to show up, who did as they were taken out in handcuffs for doing nothing. All the other white ppl are wondering why it's never happened to us when we do the same thing. pic.twitter.com/0U4Pzs55Ci

- Melissa DePino (@missydepino) April 12, 2018

"When the anonymous black person enters the white space, others there immediately try to make sense of him or her-to figure out "who that is," or to gain a sense of the nature of the person's business and whether they need to be concerned." - Elijah Anderson, "The White Space" https://t.co/i3F7gg6cNC

- b-boy bouiebaisse (@jbouie) April 13, 2018

Ever since I posted this, I've had white strangers AND friends say "there must be something more to this story." That assumption is a big part of the problem. It does happen. All the time. Just not to you and me. Believe it and speak up.

- Melissa DePino (@missydepino) April 13, 2018

On Saturday, April 14, Starbucks issued a short apology that was universally condemned for its brevity and the generic nature of its wording. The next day, April 15, an apology from Starbucks CEO Kevin Johnson noted the brand's culture condemns racial discrimination and profiling. He promised the company would investigate why the incident led to such a "reprehensible outcome." Johnson also said regional VP Camille Hynes was in Philadelphia "to speak with partners, customers and community leaders as well as law enforcement."

Suffice to say, much damage was done. Black Lives Matter condemned the incident, citing it as another textbook example of the unsubstantiated fear that arises with black men simply being present in white spaces. #BoycottStarbucks trended all weekend, and protests outside the Starbucks in question are set to continue throughout the day Monday. As of this writing, protestors effectively have shut the location where the incident occurred, taking over the restaurant and confronting management at the establishment to request that the employee who called the police be fired.

Protests continue inside of center city @Starbucks store where two black men were arrested. @6abc pic.twitter.com/Bv9XIAPD8Y

- Jeannette Reyes (@6abcJeannette) April 16, 2018

Still in crisis management mode, Johnson went on "Good Morning America" today (April 16) to announce he was planning to meet the two men, hopefully this week, and that Starbucks would train its employees to not act on unconscious bias. He also reiterated his belief the situation should never have escalated to the point where an arrest was made.

FULL INTERVIEW: "I personally apologize..." Starbucks CEO Kevin Johnson one-on-one with @RobinRoberts in his first interview after two black men were handcuffed at a Philadelphia store.

FULL STORY: https://t.co/4CL5j2lPL7 pic.twitter.com/AVnguPqAxa

- Good Morning America (@GMA) April 16, 2018

Brand communicators know gathering information often is the first step in crisis management. Situations dictate how long fact gathering should last before the company or CEO enters the fray. In this case it seems three days was entirely too long to wait before getting involved in the conversation.

Nonetheless, Johnson was accountable, involving himself in the dialogue and conversations about unconscious bias and policy reform at Starbucks. Earlier today it was reported Johnson already was in Philadelphia and the manager and the company agreed to part ways. It wasn't too little, but time will tell if it was too late.

Some believe such accountability should acknowledge the company's past initiative encouraging conversations about race relations. In 2015, Starbucks launched a "Race Together" initiative where employees wrote the phrase on customer cups to start a dialogue about race relations in America. The initiative was retired after only a couple of weeks, with many pointing out the largely white makeup of Starbucks' leadership and deriding "Race Together" as nothing but a band-aid on a much larger wound. It also delayed customers from getting their coffee promptly.

Under Johnson's leadership, Starbucks has an opportunity to engage in social listening that it has long been lauded for and learn from the responses to his statement. In response to his statement's claim that the incident should never have escalated to the point of arrest, for example, one Twitter user had this to say:

"Our manager never intended for these men to be arrested...this should never have escalated as it did."

Calling the police introduces the prospect of arrest, and since the police are armed, the prospect of violence. Calling the police IS an escalation. https://t.co/eAHJ5SmPgX

- Gene "GD" Demby (@GeeDee215) April 15, 2018

Engaging with your followers about funny drink orders or anecdotes at the counter is one thing, but if Starbucks can instead leverage its reputation for social listening to function as an active conduit for meaningful discussions about race, class and "otherness" in modern society, then the brand can also position itself as the catalyst for conversations about corporate America that many believe are long overdue.
Starbucks did not immediately respond to our request for comment.
Follow Justin: @Joffaloff

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Starbucks' Late Crisis Response Offers PR Pros a Lesson in Social Listening

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Starbucks found itself in hot water on April 12 that had nothing to do with brewing coffee. The manager at a downtown Philadelphia location of the popular chain called police to report two black men were sitting in the shop, waiting for a colleague.

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The company has sensationally admitted that around 11 million of its cars worldwide were ‘rigged’ to cheat emissions testing, wiping millions off VW’s share value and raising serious questions about cars and the environment.

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German car manufacturer Volkswagen is in full PR crisis mode this week, having become embroiled in one of the biggest scandals to hit the automotive industry in recent years.

The company has sensationally admitted that around 11 million of its cars worldwide were 'rigged' to cheat emissions testing, wiping millions off VW's share value and raising serious questions about cars and the environment.

It's a bombshell alright, but how is Volkswagen handling the crisis?

First of all the company's CEO, Martin Winterkorn, faced up to the cameras, admitting that his company had deliberately set out to deceive US environmental regulators: "We totally screwed up," he acknowledged.

"I personally am deeply sorry that we have broken the trust of our customers and the public," he went on. "We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case. Volkswagen has ordered an external investigation of this matter."

The company's official 188-word statement hit more or less the right notes, words like 'trust' (three times), 'transparency', 'urgency', 'openly' all doing their best to show how committed VW is to doing, as they say, "everything necessary to reverse the damage this has caused".

One of the first casualties of the investigation, almost inevitably, was CEO Winterkorn himself who stepped down while registering his shock "that misconduct on such a scale was possible in the Volkswagen Group". He added that he was not aware of any wrongdoing on his part.

Getting rid of the boss is part of the damage-limitation process, but in this case it will be months or even years before the extent of the damage is apparent. Behind the scenes, we can assume that everything possible is being done to get to the bottom of what really happened, how and why. That information will have a major impact on VW, on the wider industry, and possibly even further afield - we shall see.

In the meantime, what is happening to Volkswagen should serve as a cautionary tale for companies everywhere - be prepared! You know not the day or the hour when disaster may come calling. Here are our five tips for handling a PR crisis:

By the time a crisis hits, it's too late to start planning so put 'risk' on the agenda now. What could possibly go wrong in your business? What is the worst case scenario - that's your starting point - and what steps would you take to deal with it? Media training might be required for senior executives who may some day have to face the cameras and explain some harsh truths. Right now, time is on your side so use that time to put a plan in place.

Tell your staff what's happening

In the scramble to deal with the outside world, it can be easy to overlook your primary audience - your own staff and employees. This audience should be briefed as frankly as possible, as quickly as possible. They are part of the crisis too, and it's important that they know what's going on.

Front up as soon as possible - and don't go away

Even if you don't have all the facts - and it's unlikely you will, not at the 'unfolding' stage - you must be prepared to show your face, even if it's just to admit that yes, there is a problem and yes, we are dealing with it. Don't allow a vacuum to develop, as this will quickly get filled by third-party views and opinions (social media is just perfect for fanning the flames). Front up, take responsibility, and tell the truth. Be available also while the story is developing so that you and not they are in control of the message.

Get to the bottom of what happened

Finding out the what, why and how is an essential part of dealing with any crisis. Depending on the scale of the issue - as with VW - there may need to be an external investigation; in any case it is imperative that the company in the eye of the storm is seen to be open and transparent with the facts. Keep a close eye on what people are saying, and be prepared to step in to fill any information void or address any inaccuracies.

First of all, you want to make sure that whatever happened does not happen again. Take the appropriate operational or procedural steps to close off that eventuality. Then from a communications point of view, conduct a thorough review of your response to the crisis and decide what worked, what didn't, and how the crisis plan can be refined if the worst case scenario happens again.
Cullen Communications provides crisis management support and media training.

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German car manufacturer Volkswagen is in full PR crisis mode this week, having become embroiled in one of the biggest scandals to hit the automotive industry in recent years. The company has sensationally admitted that around 11 million of its cars worldwide were 'rigged' to cheat emissions testing, wiping millions off VW's share value and raising serious questions about cars and the environment.

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In 2015 The company came under a storm of criticism after The New York Times charged that Coca-Cola was funding obesity research that attempted to disprove the link between obesity and diet and shift the problem to lack of exercise.

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Communications experts praise Coca-Cola's recent response to criticisms as an example of first-class corporate crisis management. Specifically, they point to The Wall Street Journal op-ed by Coca-Cola CEO Muhtar Kent.

The company came under a storm of criticism after The New York Times charged that Coca-Cola was funding obesity research that attempted to disprove the link between obesity and diet and shift the problem to lack of exercise. The article says Coca-Cola, desperate to halt sliding sales, financed the new nonprofit Global Energy Balance Network. Critics call it a front group created to espouse misinformation and deflect the role of soft drinks in the spread of obesity and Type 2 diabetes

Corporations under fire can look to Kent's op-ed for guidance when responding to attacks and considering apologies.

Kent outlines the company's response and admits the company's misstep while not exactly apologizing in his op-ed, Coca-Cola: We'll Do Better. In a matter-of-fact tone, Kent takes the accusations head on, acknowledging the accusations that it has deceived the public about its support for scientific research. He defends the company by saying it is attempting to tackle the global obesity epidemic and has always had good intentions.

A New Strategy

Kent also admits the company's strategy "is not working." "I am disappointed that some actions we have taken to fund scientific research and health and well-being programs have served only to create more confusion and mistrust," he writes.

He explains how the company will act going forward. First, he says it will act with even more transparency. The company will publish a list of health and well-being partnerships and research activities it has funded in the past five years on its website and will update the list every six months.

The company will continue its efforts to provide healthy options, he says, such as waters, lower-calorie and lower-sugar drinks, diet soda and zero-calorie drinks. At the same time, he inserts a sales plug by referring to Coca-Cola's wide range of beverage options.

The op-ed stresses the company's commitment to fighting obesity. "We want to get focused on real change, and we have a great opportunity ahead of us," he says. "We are determined to get this right."

Download the 2018 Ultimate Guide to Media Monitoring, Measurement & Analytics for PR & Marketing

The Three O's

Mark Braykovich, vice president at Atlanta-based The Wilbert Group, says Kent successfully filled the three O's of crisis management:

Own up to it. Assuming responsibility at some level usually helps the corporate reputation over the long run.

Get the CEO Out front. The CEO is the best spokesperson for the corporation. Most PR disasters happen when companies shield the CEO, or the CEO appears to have little interest in the problem.

Make an Outsized response. Overaction is preferable to small measures or ignoring the critics. Kent directs the president of Coca-Cola North America to create an oversight committee of independent experts to provide governance on company investments in academic research, and engage experts to explore opportunities for research and health initiatives.

Braykovich says he gives Kent an A for using the three O's.

Bottom Line: Coca-Cola's response to accusations that it financed a front group to protect its interests at the expense of public health is a case study in PR crisis management. The op-ed by Coca-Cola CEO Muhtar Kent epitomizes a corporate response that contains the essential elements of effective corporate PR crisis management.

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Case Study: Coca-Cola PR Crisis Management

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Communications experts praise Coca-Cola's recent response to criticisms as an example of first-class corporate crisis management. Specifically, they point to The Wall Street Journal op-ed by Coca-Cola CEO Muhtar Kent. The company came under a storm of criticism after The New York Times charged that Coca-Cola was funding obesity research that attempted to disprove the ...