The muiltinational company built on cynical tax strategies and exploiting workers cannot understand why people no longer flock to their coffee shops.
With sales falling Starbucks CEO Brian Niccol is embarking on a radical restructuring effort, which is expected to cost $1 billion. This will include shutting underperforming outlets. The flagship Starbucks roastery in Seattle, Washington has already been closed. Coincidentally the Seattle shop is one of the unionised Starbucks outlets. Another unionized outlet in Chicago, on Ridge Avenue, has also been closed.
The company are known for paying very little corporation tax in many countries. This is achieved by the Starbucks companies in these countries making royalty payments which virtually wipe out any profits made. The UK business paid no tax last year as it posted a £35m loss after paying £40m in royalty and licence fees to its parent company. The previous year Starbucks paid a paltry £7.2 million in tax against profits of £149 million. Starbucks also uses loans to its subsidiaries with interest payments deducted from profits to reduce tax liability.
Of course Starbucks could easily change the attitude of the public towards them and it might not cost as much as the $1 billion they are spending on restructuring. They could just try not being total arseholes to the countries they operate in and to their staff. The upside to them not being arseholes to their staff is they might just be that little bit happier about working in their outlets. This would likely be translated into better customer service. Nobody likes being served by someone who hates their job.