How Starbucks Prevents Further Damage From Brewing

By Sierra Goodman

Starbucks is known for taking a stand on political issues such as gay rights, gun control, immigration, race and environmental concerns. When the coffee company was confronted with a racial profiling crisis earlier this month, the company leaned on their corporate values to address the issue quickly and implement steps toward a solution.

On April 12, two African-American men by the name of Donte Robinson and Rashon Nelson went to a Starbucks in Philadelphia for a business meeting. While waiting for another person, Nelson asked the manager if he could use the restroom but was declined because he did not buy anything. After Nelson returned to his table, the manager asked them if they wanted to order drinks. When they declined the manager proceeded to call police for suspicion of trespassing. This all occurred in the span of two minutes. Shortly after the call, police arrived and asked the men to leave. When Robinson and Nelson refused, police arrested them with double lock handcuffs without their rights read or an explanation. Starbucks did not press charges.

The incident has received an enormous amount of media attention. Starbucks customers took videos and posted on social media to document and share. Starbucks is now facing a crisis due to the fierce criticism from protests at the Philadelphia location and social media with the hashtag #BoycottStarbucks. On April 14, two days after the incident, executive chairman and past CEO, Howard Schultz; current CEO, Kevin Johnson; and Starbucks corporate released separate statements apologizing for the situation.

Johnson appeared on Good Morning America for a one-on-one interview with Robin Roberts. He made a personal apology to Nelson and Robinson, addressed how Starbucks plans to prevent something like that from ever happening again, and created a dialogue about how the company will address racial profiling. Since then, a spokeswoman followed up on the statements made in the interview citing that Johnson did indeed meet with the two men but declined any comment on details. After further investigation, the manager who called the police on Nelson and Robinson has been terminated.

Johnson’s response has received positive feedback from the media for the way he took full responsibility. Starbucks executives have been applauded for their responses on other media platforms and full cooperation with Philadelphia Mayor, Jim Kenney, and the Philadelphia Commission on Human Relations.’

Johnson noted that the company does not have a company-wide policy about asking people to leave the store. The company leaves safety and customer service protocol up to store managers. However, they acknowledged that the incident is at odds with the common practices at Starbucks. The stores are used as “community” hubs, where people may come to use the WiFi and hang out without buying anything.

Starbucks has always made its mission to connect with people one way or another through its coffee “to inspire and nurture the human spirit.” Schultz has taken that mission seriously by implementing widely recognized CSR practices including the use of ethically and sustainably sourced products, environmentally friendly operations and socially conscious programs. Many Starbucks campaigns have reflected its mission and practices to make an impact on the world and the customers the company serves.

For instance, in 2015 Starbucks implemented a ‘Race Together’ campaign giving baristas the option to write the words ‘race together’ on a customer’s cup. The idea was to encourage people to talk about race. The campaign faced backlash for multiple reasons but the company moved forward feeling it was “well worth the discomfort.”

On April 17, Starbucks announced that all U.S. company-owned stores will close on May 29, to conduct a racial-bias training. The curriculum will be designed by nationally recognized experts to address implicit bias, promote conscious inclusion, prevent discrimination and ensure everyone at Starbucks feels safe and welcome. They hope to make a change for the company and help other organizations to learn from example as well.

There has been question to whether the training session will actually work and make an impact in their stores nationwide. Only time will tell. For now, here are four takeaways from Starbucks’ response to the crisis:

  1. They had established CSR practices and attempted proactive efforts toward corporate responsibility to race.
  2. Leadership responded in a timely manner and closed the store location to allow a justified protest.
  3. They took full responsibility without blaming other variables and apologized to the victims and others affected.
  4. They set a plan in action to prevent future incidents and communicated it to the public, media and other officials throughout the process.

Other organizations should take note of the steps Starbucks took to ensure a timely and well-communicated response to a situation that could have otherwise blown out of proportion.

Five Characteristics of Gen Z and How They are Changing PR

By Kate Miller

Breaking news: Most students attending college right now are not millennials, even though older people still categorize us as millennials. According to The Huffington Post, if you were born in 1995 or later you are part of “Gen Z.” Sorry to all of the thirty somethings who still want to relate to college kids. A “millennial” is a person who is or becomes a young adult in the year 2000.

Although many of us thought we were millennials up until recently, there are some key differences between us and “true millennials.”

  1. We are global.

Since our generation grew up with technology, Gen Zer’s relate closer with internet users across the world than the generations above. We are considered the first to be fully global: meaning we think, relate and interact with a global mindset. Ask yourself if you could go a week without your device or even a day? Huffington Post found 40 percent of Gen Z self-identifies as “digital device addicts.” This is contributing to the change in strategic marketing strategies across the board.

Think about how many TV ads Starbucks put out about the new unicorn frappuccino. I have yet to see one. There very well could be, but Starbucks is targeting “Gen-zennials” a Ketchum term for the cohort of 16-24 year olds in between generations. This Starbucks campaign is meant to be instagrammed.

We are a generation that has device dependency that leaves little time for TV consumption, and little interest for traditional advertising and news consumption causing brands to have to change their strategy. When marketing products, keep in mind that times have changed and Gen Z relates to diversity and responds to visuals. If you are starting a campaign, make sure to tailor it to social media and make sure it is sharable.

  1. We are individuals.

Generational hipsters were born social and started developing a brand for themselves from a young age. Myspace, Tumblr, Musically, Facebook, Snapchat, Instagram, Reddit, Weheartit, Vine etc.; 92 percent of Gen Z has a digital footprint. Local coffee shops, #exploregon and thrifting have become a generational norm. Gen Z looks for uniqueness in their brand and what they consume. They are focused on being different, embracing globalization and diversity.

Being unique is trendy. This is creating even more need for PR professionals to target messaging to specific groups due to the expansive individuality and diversity of this generation. Take a look at Lynda.com and Facebook blueprint. In order to strategically target Gen Z, it is becoming essential to understand your target market and to use paid media as an advantage for your brand.

  1. We are constantly multitasking.

Due to the constant speed of social media, especially on channels like Snapchat and Vine, Gen Z is developing a shorter attention span. There is an instant gratification expectation. We are reshaping the way PR professionals are setting up campaigns because when we are doing five things at once there is a lack of observation and attention to detail that PR professionals pride themselves in. It takes a visual appeal to grab the attention of a Gen Z. But this should not dismiss the work ethic of Gen Z and the way they are reshaping the classroom and workplace in PR.

Gen Z has created a shift within the work and play boundaries, multitasking is increasing productivity for offices, and making work environments more desirable due to the blurred lines. This requires PR professionals to step up their game and target audiences in a compelling and relatable way. When creating messaging keep it short and sweet because your messaging is getting read in between a scroll.

  1. We are self-starters.

Because Gen Z was immersed in technology growing up, they are thinking entrepreneurially. Gen Z likes independence, they are self-starters and 72 percent of teens in Gen Z desire to start their own business one day. A lot of what has shaped Gen Z is growing up in the recession in 2008 which is apparent in how much they value experiences and how frugal they are with their money.

Gen Z is not seeing the value in higher education like previous generations and employers are predicting more young adults go straight into the workforce. The cost versus gain to of school does not seem to be paying off in comparison to the loans Gen Zer’s will be paying off long after.

Gen Z values efficiency and knowledge is included. If there is a way for them to learn something in a more affordable, timely manner that is less traditional, they will most likely take that route. When targeting this audience taking an approach like Starbucks’ unicorn drink, five days only, for a drink most consumers wouldn’t traditionally purchase, not only makes Gen Z want to consume because of the uniqueness, but the limited time increases value for Gen Zer’s.

  1. We have high expectations.

Gen Z expects brands to be loyal to them instead of the other way around. They want to feel appreciated. If they do not feel valued and appreciated they will take their loyalty somewhere else. Because Gen Z has grown up in a culture of innovation and technological advancements, they now expect this level of innovation instead of being amazed by how incredibly advanced technology truly is. As a PR person, sharing the values of the brand and how much you value your customers through messaging is crucial.

Gen Z is changing the PR and marketing world dramatically, causing us to be more strategic and technological when running campaigns. As a Gen Zer, I am sure some of these findings are relatable. Keep in mind now more than ever the importance of targeting.