Transcript Document

Starbucks Coffee
Can Customers Breastfeed in a Coffee Shop?
Whole, Skim, or Breast milk?
• August 8, 2004
– Silver Springs, Maryland Starbucks
– “Nurse-in”: Mothers, Fathers, Babies
– ~100 protestors (30 mothers)
• The Idea: 1 Month Earlier
– Lorig Charkoudian
– Breastfed 15 month old daughter
So, why Starbucks?
History of Starbucks
• Founded in 1971.
• Coffee, tea, and spice store.
• Named in honor of the first mate in
Herman Melville’s Moby Dick.
Howard Schultz
• Kitchen appliance salesman
• Hired by Starbucks in 1982
• Trip to Milan in 1983
• Left the company in 1985
• Bought the company in 1987
Starbucks and Schultz
• IPO in 1992
• 8,337 stores
• 33 countries
• $4.1 billion in revenues
• Available in supermarkets and
commercial airliners
Starbucks’ Culture
• Third Space
• Employee Focus
• Corporate Social Responsibility
http://www.starbucks.com/aboutus/environment.asp
Starbucks’ Culture
• 6 Principles:
– Provide a great work
environment and treat each
other with respect and dignity.
– Embrace diversity as an
essential component in the way
we do business.
http://www.starbucks.com/aboutus/environment.asp
Starbucks’ Culture
• 6 Principles:
– Apply the highest standards of
excellence to the purchasing,
roasting and fresh delivery of
our coffee.
– Develop enthusiastically
satisfied customers all of the
time.
http://www.starbucks.com/aboutus/environment.asp
Starbucks’ Culture
• 6 Principles:
– Contribute positively to our
communities and our
environment.
– Recognize that profitability is
essential to our future success.
http://www.starbucks.com/aboutus/environment.asp
Who thought to target Starbucks?
Lorig Charkoudian
• Conflict Resolution
• Maryland’s Top 100 Women
• Accomplishments
– Adjunct professor @ University of
Baltimore
– 1995-present: Executive Director and
Founder of Community Mediation Program
• Awards
– 1999: Unsung Hero Award
– 1997: Brick Award & Human Rights
Community Builder Award
Lorig’s Demands & Response
• Breastfeeding policy in all Starbucks
• www.nurseatstarbucks.com
– Letters to CEO, Orin C. Smith
“It’s about public acceptance of
breastfeeding”
Lorig Charkoudian
Starbucks Response
“Starbucks complies with all applicable
state and local laws regarding
breastfeeding”
“Concerned customers should avert their
eyes or move to a different location
within the store”
Audrey Lincoff
Starbucks Spokeswoman
Breastfeeding Legislation
• May 22, 2003: Maryland Governor
Robert L. Ehrlich, Jr. signed legislation
regarding public breastfeeding
• Maryland Code Title XX, Subtitle XIII
a) A mother may breast-feed her child in any
public or private location in which the
mother and child are authorized to be.
b) A person may not restrict or limit the
right of a mother to breast-feed her child.
Breastfeeding Legislation
• 16 states currently have no legislation
• Language
– “irrespective of whether the nipple of the mother’s
breast is uncovered during or incidental to the
breastfeeding”
– “conducted in a modest manner”
• New Jersey and Connecticut
– Fine or imprisonment for limiting a mother’s right
to breastfeed
• Hawaii and Illinois
– Proceedings for limiting a mother’s right to
breastfeed
• Other legislation: Jury duty and sales tax
exemption
Industry Responses
• McDonald’s
– No comment
• Burger King
– Corporate wide policy
– “We want to be a family-friendly place”
Rob Doughty
Past Problems
• 1995: Jeremy Dorosin
• Faulty espresso machine
– Received “loaner”
– Purchased wedding gift
• Chain of Complaint
– Store manager
– Corporate Service Supervisor
– District manager
“Too little, too late”
Jeremy Dorosin
In a matter of weeks…
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May 5, 1995: Wall Street Journal
3 radio shows
3 television program appearances
New York Times article
www.starbucked.com
Timeline: ~6 weeks
Conflicting Customer Segments
“If you look at the clientele during
business hours, you’ll find a lot of
young mothers with children who
come to congregate and talk. If they
want to continue to attract this
clientele, they need to change their
policies.” Elizabeth Zifcak
“In a place where I am eating and
drinking, that is the last thing I want
to see.” Kalen Johnson
Critical Issues
• Determine appropriate level of
response.
• Identify costs (alienating customers).
• Determine corporate stance.
• Remaining aware of and
communicating legislation changes.
• Corporate policy decision.
Stakeholders
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Starbucks executives.
Starbucks managers and employees.
Breastfeeding advocates.
Starbucks customers.
Other corporate retailers.
Legislators.
Questions?
• Should Lorig’s group’s demands be
taken seriously, or are they just
another case of ridiculous requests
which can be safely ignored by the
company?
• Is there a reasonable way for
Starbucks to satisfy all customer
segments?
Questions?
• Assuming Starbucks adopts an official
policy, how can it effectively
communicate the policy throughout
the company?
• When state laws which affect store
operations change, how can Starbucks
communicate the new laws to stores in
that state to ensure that all stores are
in compliance?
Discussion