Starbucks considers ending coffee chain's open-bathroom policy
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The battle over the Starbucks (NASDAQ:SBUX) bathroom has resurfaced following comments from longtime CEO Howard Schultz, who returned to the helm of the company back in April. "We have to harden our stores and provide safety for our people," he told The New York Times
DealBook D.C. Policy Forum, attributing the U-turn to security issues. "I don't know if we can keep our bathrooms open."
Backdrop: The company announced its open-bathroom policy in 2018 in response to an incident in which two Black men were arrested at a Starbucks (SBUX) in Philadelphia. The pair were reported to the police by an employee after they were denied use of the store's bathroom and asked to leave because they hadn't made a purchase. When they did not comply, the store manager called the police, saying the men were trespassing, and a viral video of the incident went on to make national news and prompt outrage against Starbucks (SBUX).
In response, the coffee chain apologized for the event and closed all of its U.S. stores for a day for staff to attend an anti-bias training. Schultz, who was executive chairman at the time, influenced the decision to open "restrooms, cafes and patios" to all customers regardless of whether they make a purchase. "We don't want to become a public bathroom, but we're going to make the right decision 100% of the time and give people the key, because we don't want anyone at Starbucks to feel as if we are not giving access to you to the bathroom because you are 'less than.'"
Outlook: Starbucks (SBUX) is dealing with other sensitive workplace situations as of late, like a union drive that is strengthening across the country. "We can't ignore what is happening in the country as it relates to companies throughout the country being assaulted, in many ways, by the threat of unionization," Schultz told baristas on his first day back as Starbucks (SBUX) CEO in April. Shares of the company have fallen with the broader market this year, tumbling 32% YTD.