Starbucks Korea Closes Stores for Employee Training After Backlash
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: seekingalpha
- Store Closure Reason: Starbucks Korea announced it will close all stores on June 22 for mandatory employee training in response to a customer boycott triggered by a controversial promotional campaign, highlighting the company's commitment to addressing public sentiment.
- Training Content and Context: The training will focus on modern Korean history and social sensitivity, particularly regarding the 1980 Gwangju uprising, aiming to better align corporate messaging with public sentiment and prevent similar incidents in the future.
- Management Changes: The backlash resulted in the dismissal of Starbucks Korea head Sohn Jeong-hyun and prompted public apologies from leadership, reflecting the pressure the company faces regarding brand image and public trust, with reports of a sales impact.
- Internal Process Reforms: Starbucks Korea will revise its internal approval processes to include social sensitivity checks and cross-departmental reviews for future campaigns, aiming to enhance brand image and customer loyalty by ensuring alignment with societal expectations.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 99.820
Low
59.00
Averages
96.12
High
115.00
Current: 99.820
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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