What's Behind the Starbucks Boycott?
Starbucks may face a plummet of sales, consumers, and employees.
What happened? Starbucks sued Starbucks Workers United for trademark infringement in use of the company's name in a recently uploaded statement via X (Twitter) that expressed the company's stance on the Israel-Hamas war, confirming solidarity with Palestine. This has caused those in support of Palestine to boycott in response of Starbucks' lawsuit.
What it means? This means that Starbucks may face a plummet of sales, consumers, and employees. This situation can also harm the company's reputation. This connects to my beat as it demonstrates how businesses are affected by the media along with how customer engagement impacts a business as well.
By the numbers: Starbucks saw a $2 billion dollar drop in sales during the year of 2020 due to the COVID-19 pandemic. The company's revenue increases about 10% to 12% a year, making the decline of 2020 the first time in history for the company to hit that big of a reduction.
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