A few weeks ago, Starbucks announced that it would be ending its open-door policy, which allowed people to use the store’s seating and restrooms even if they didn’t make a purchase. The company stated that the change was made to “enhance” the customer experience. However, many critics have expressed that the move seems more focused on keeping out “the riff raff,” raising concerns about the company’s true intentions.
To refresh your memory on what prompted the first change, Starbucks implemented the open-door policy after facing accusations of racial profiling and discrimination when two Black men were arrested for sitting in a Starbucks café without buying anything back in 2018. The policy change happened because of public outcry and was shaped as an effort to be more inclusive, something that played into the politics of Starbucks’ core customers.
Rescinding such a rule could be viewed as the opposite, and it is proving to be a point of contention with the brand’s customers and employees – the very people charged with enforcing the new policy, including whether to call law enforcement. Despite a planned three-hour training session for all employees, union members specifically have raised issue with uncertainty around the revised code of conduct’s impact on each barista’s “everyday responsibility.”
Beyond the political considerations, we get to the issue of timing and when to announce changes that are upending the status quo. As we all know, we are currently living in a time where corporate policies are receiving increased scrutiny and attention. While Starbucks had indicated their policy change is a business decision based on operational needs, it was announced at a time when our country is focusing on broad rules changes regarding identity and nationality. It is difficult not to compare the two. If nothing else, the timing of the coffee chain’s announcement couldn’t be worse.
Here are a few thought starters you can discuss at your next team meeting to help your leaders and team see whether your business is ready to handle a crisis:
Discussion Questions:
- What would you do if your business was in Starbucks’ shoes?
- What policies does your organization have in place that, if reversed, could be controversial for critical stakeholders such as customers and employees?
- If you instituted a rule that received public backlash, how would you manage it? At what point would you walk it back, which risks backlash from those who supported the rule?
- How would you take the current political climate into account when deciding the right time to implement a major policy change in your business?
Kith facilitates crisis preparedness workshops that will help your company attain the clarity, trust, and speed you need to respond confidently – no dithering! – to any crisis. We’d be happy to have a conversation about how we can help your company be ready to chart an effective course to reputation protection.
