Starbucks CEO Laxman Narasimhan spoke for the first time on Tuesday by name about the crisis gripping the world's largest coffee chain amid an iron sword war. From what was said in the letter, it seems that the CEO preferred to walk between the drops rather than take a position on the situation in Israel and Gaza.
Two months ago, one of Starbucks' independent labor organizations posted on Twitter calling for "solidarity with Palestine," and its members even participated in pro-Palestinian demonstrations across the United States. While the post was removed after the organization was widely criticized, Starbucks itself said in a statement that it disagreed with the views of the protesting workers ("The words and actions of the organization belong to them and only to them"). But it soon became clear that this was only the beginning of the saga. Since then, the organization and the chain have filed mutual lawsuits against each other, and Starbucks has been called for a boycott from both sides: mainly from pro-Palestinian elements who protested that the chain disavowed the committee's post and even committed acts of vandalism in several cafes, but also from supporters of Israel who could not distinguish between the position of the organization, which represents only 360 American stores (out of about 16,000 stores in the entire US), and the position of the network management.
Starbucks workers' union, photo: Facebook
The calls for a boycott and confusion have done their job: In the past month, Starbucks' shares have collapsed by about six percent, while the chain's market value has plummeted by more than $11 billion.
Now, in an attempt to steady the ship, Narasimhan, 56, who took office last April, sent an open year-end letter to the chain's employees, whom he called "partners."
After opening remarks and a few greetings, Narasimhan wrote the following: "I am concerned about the state of the world in which we live. Many parts of it experience conflicts. Innocent people fall victim to violence, hatred and false discourse – all of which we condemn. In cities around the world, including here in North America, protests are intensifying. Many of our stores have suffered incidents of vandalism. We see protesters affected by misrepresentations on social media about what we stand for. We have worked with local authorities to ensure the safety of our partners and customers. There is nothing more important than that. Our position is clear: we support humanity.
Starbucks's chief executive said protesters vandalizing its stores over the Israel-Hamas war have the wrong impression of the company and its beliefs https://t.co/uCJzxNacY1 https://t.co/uCJzxNacY1
— The Wall Street Journal (@WSJ) December 19, 2023
Narasimhan continued, "No one can solve the world's problems alone, but we can offer a place where people can come, meet, find common ground, feel like they belong and bring a little joy. We call it 'third place'. In my daily meditation, I pray for peace – and immediately," concluded the CEO, who chose not to directly address the war.
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