Starbucks Coffee

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Starbucks Coffee

• Can Customers Breastfeed in a Coffee Shop?

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Whole, Skim, or Breast milk?

• August 8, 2004
• Silver Springs, Maryland Starbucks
• Nurse-in Mothers, Fathers, Babies
• 100 protestors (30 mothers)
• The Idea 1 Month Earlier
• Lorig Charkoudian
• Breastfed 15 month old daughter

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So, why Starbucks?
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History of Starbucks

• Founded in 1971.
• Coffee, tea, and spice store.
• Named in honor of the first mate in Herman
  Melvilles Moby Dick.

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Howard Schultz

• Kitchen appliance salesman
• Hired by Starbucks in 1982
• Trip to Milan in 1983
• Left the company in 1985
• Bought the company in 1987

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Starbucks and Schultz

• IPO in 1992
• 8,337 stores
• 33 countries
• 4.1 billion in revenues
• Available in supermarkets and commercial airliners

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Starbucks Culture

• Third Space
• Employee Focus
• Corporate Social Responsibility

http//www.starbucks.com/aboutus/environment.asp
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Starbucks Culture

• 6 Principles
• Provide a great work environment and treat each
  other with respect and dignity.
• Embrace diversity as an essential component in
  the way we do business.

http//www.starbucks.com/aboutus/environment.asp
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Starbucks Culture

• 6 Principles
• Apply the highest standards of excellence to the
  purchasing, roasting and fresh delivery of our
  coffee.
• Develop enthusiastically satisfied customers all
  of the time.

http//www.starbucks.com/aboutus/environment.asp
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Starbucks Culture

• 6 Principles
• Contribute positively to our communities and our
  environment.
• Recognize that profitability is essential to our
  future success.

http//www.starbucks.com/aboutus/environment.asp
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• Who thought to target Starbucks?

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Lorig Charkoudian

• Conflict Resolution
• Marylands Top 100 Women
• Accomplishments
• Adjunct professor _at_ University of Baltimore
• 1995-present Executive Director and Founder of
  Community Mediation Program
• Awards
• 1999 Unsung Hero Award
• 1997 Brick Award Human Rights Community
  Builder Award

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Lorigs Demands Response

• Breastfeeding policy in all Starbucks
• www.nurseatstarbucks.com
• Letters to CEO, Orin C. Smith
• Its about public acceptance of breastfeeding
• Lorig Charkoudian

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Starbucks Response

• Starbucks complies with all applicable state and
  local laws regarding breastfeeding
• Concerned customers should avert their eyes or
  move to a different location within the store
• Audrey Lincoff
• Starbucks Spokeswoman

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Breastfeeding Legislation

• May 22, 2003 Maryland Governor Robert L.
  Ehrlich, Jr. signed legislation regarding public
  breastfeeding
• Maryland Code Title XX, Subtitle XIII
• a) A mother may breast-feed her child in any
  public or private location in which the mother
  and child are authorized to be.
• b) A person may not restrict or limit the right
  of a mother to breast-feed her child.

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Breastfeeding Legislation

• 16 states currently have no legislation
• Language
• irrespective of whether the nipple of the
  mothers breast is uncovered during or incidental
  to the breastfeeding
• conducted in a modest manner
• New Jersey and Connecticut
• Fine or imprisonment for limiting a mothers
  right to breastfeed
• Hawaii and Illinois
• Proceedings for limiting a mothers right to
  breastfeed
• Other legislation Jury duty and sales tax
  exemption

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Industry Responses

• McDonalds
• No comment
• Burger King
• Corporate wide policy
• We want to be a family-friendly place
• Rob Doughty

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Past Problems

• 1995 Jeremy Dorosin
• Faulty espresso machine
• Received loaner
• Purchased wedding gift
• Chain of Complaint
• Store manager
• Corporate Service Supervisor
• District manager
• Too little, too late
• Jeremy Dorosin

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In a matter of weeks

• May 5, 1995 Wall Street Journal
• 3 radio shows
• 3 television program appearances
• New York Times article
• www.starbucked.com
• Timeline 6 weeks

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Conflicting Customer Segments

• If you look at the clientele during business
  hours, youll find a lot of young mothers with
  children who come to congregate and talk. If
  they want to continue to attract this clientele,
  they need to change their policies. Elizabeth
  Zifcak
• In a place where I am eating and drinking, that
  is the last thing I want to see. Kalen Johnson

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Critical Issues

• Determine appropriate level of response.
• Identify costs (alienating customers).
• Determine corporate stance.
• Remaining aware of and communicating legislation
  changes.
• Corporate policy decision.

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Stakeholders

• Starbucks executives.
• Starbucks managers and employees.
• Breastfeeding advocates.
• Starbucks customers.
• Other corporate retailers.
• Legislators.

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Questions?

• Should Lorigs groups demands be taken
  seriously, or are they just another case of
  ridiculous requests which can be safely ignored
  by the company?
• Is there a reasonable way for Starbucks to
  satisfy all customer segments?

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Questions?

• Assuming Starbucks adopts an official policy, how
  can it effectively communicate the policy
  throughout the company?
• When state laws which affect store operations
  change, how can Starbucks communicate the new
  laws to stores in that state to ensure that all
  stores are in compliance?

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Discussion