The Starbucks Coffee brand just took a major hit after the company’s CEO declared that he would hire 10,000 Muslim “refugees” in response to President Donald Trump’s temporary travel moratorium in January.
Starbucks CEO Howard Schultz criticized President Trump for putting a temporary hold on immigration from a list of seven countries that are known to be havens for terrorists. Schultz stated that he planned to hire 10,000 Muslim refugees over five years in protest against Trump’s order.
The statement has proven to do more damage to the Starbucks brand name than Mr. Schultz could’ve ever imagined by alienating a good deal of its customer base. Perception levels of the Starbucks brand name fell by an incredible two-thirds since its January announcement, according to a YouGov survey, as reported by Yahoo Finance.
The survey measures how potential customers feel about a company’s brand and asks if they have “heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative.”
In the week preceding the company’s January refugees announcement, 30% of respondents said they would consider spending money at Starbucks. But after the statement that number fell to 24 percent, the survey discovered.
The result of Starbuck’s announcement was a #BoycottStarbucks movement on Twitter which resulted in resentment from Americans who took the comment as a statement to hire immigrants over Americans who are in need of jobs.
Benefiting from this movement are Starbuck’s direct competition like Dunkin’ Donuts along with the mom and pop coffee stores who struggle to stay alive in a bad economy.