Starbucks CEO’s Muslim Refugee Comments Hurt Customer Sentiment of Coffee Chain
Starbucks CEO’s refugee comments has hurt customer sentiment of the coffee chain.
In January Starbucks Corp. CEO Howard Schultz announced that the company would hire 10,000 refugees over the next five years after President Trump announced his temporary ban on refugees from terror states.
The Starbucks stock crashed after the announcement.
And customer sentiment has not yet recovered since the political stunt by CEO Howard Schultz.
Swiss financial services company Credit Suisse is warning that coffee giant Starbucks’ announcement of a plan to hire 10,000 Muslim refugees has clearly hurt the company by negatively impacting sales and damaging the company’s brand.
“Our work shows a sudden drop in brand sentiment following announcement of the refugee hiring initiative on Jan. 29th, to flattish from a run-rate of ~+80 (on an index of -100 to +100). Net sentiment has since recovered, but has seen significant volatility in recent weeks,” equity analyst Jason West said, according to CNBC.
At the end of February, it was reported that the Starbucks Coffee brand took a major hit after its Muslim “refugee” announcement made in January in response to President Donald Trump’s temporary travel moratorium.
According to the survey, after the company issued its anti-Trump statement, its brand name lost favor with customers. Perception levels of the Starbucks brand name fell by an incredible two-thirds since January, according to a YouGov survey, Yahoo Finance reported.