Since Starbucks announced its plan to hire 10,000 refugees to keep them in the country despite any executive orders given by President Trump, the public actually disapproved of this plan, and many Trump supporters began boycotting Starbucks, and now official numbers show that Starbuck’s public approval ratings are slipping quickly.
Schultz in a letter to employees said the promise of the American Dream was “being called into question” and that “the civility and human rights we have all taken for granted for so long are under attack.”
Since publishing this letter, “consumer perception levels took an immediate hit as measured by YouGov BrandIndex’s Buzz score, falling by two-thirds between January 29 and February 13, and have not recovered,” the Daily Mail reports.
The Daily Mail has more:
Starbucks’ vow to hire thousands refugees in response to President Donald Trump’s first travel ban appears to be hurting customer sentiment of the coffee chain, and financial analysts say it is denting their sales.
Trump supporters have called for a boycott of the chain since January 29, when Starbucks Chief Executive Howard Schultz vowed to hire 10,000 refugees over five years.
Schultz in a letter to employees said the promise of the American Dream was ‘being called into question’ and that ‘the civility and human rights we have all taken for granted for so long are under attack.’
After the letter was made public, consumer perception levels took an immediate hit as measured by YouGov BrandIndex’s Buzz score, falling by two-thirds between January 29 and February 13, and have not recovered.
YouGov BrandIndex, which tracks consumers’ sentiment toward companies and their willingness to purchase from those brands, noted that the data around this boycott is different because both measures are declining.
Analysts at Credit Suisse also believe the coffee giant’s move has had a negative impact on recent sales, and could continue to hurt them in the near future, CNBC reported.
Starbucks Buzz score fell to 4 from 12 during that time. Such scores can range from 100 to -100 and are compiled by subtracting negative feedback from positive. A zero score means equal positive and negative feedback.
Prior to Schultz’s refugee comments, 30 per cent of consumers said they would consider buying from Starbucks the next time they made a coffee purchase.
That fell to a low of 24 per cent and now stands at 26 per cent, according to a YouGov spokesman.
‘Consumer perception dropped almost immediately,’ said YouGov BrandIndex CEO Ted Marzilli, who added that the statistically significant drop in purchase consideration data showed that consumers became less keen to buy from Starbucks.