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Recent articles suggest Starbucks lost almost 7% of their customers because they acted socially responsibly.
Really???
That’s absurd. Starbucks did implement a new, ‘responsible’ bathroom policy that allows non-customers to use their restrooms. And Starbucks did lose customers. However, any problem with the toilets was in execution, not because Starbucks tried to do good.
My five-year old son, Rayden, thinks he knows what happened. “Dad, can we get out of here? This bathroom stinks!”
I sigh. “Hold your breath, Rayden. That’ll help. We’ll leave as soon as we can.”
Kids tell it like they smell it—and when a bathroom stinks, they want to leave.
Two years ago, Starbucks earned negative press when employees arrested two black men who asked to use the toilet. To ensure such decisions never happen again, Starbucks CEO took the lead: anyone can now use Starbucks bathrooms.
Perhaps poor strategy implementation lost Starbucks business. Shortly after the new rule was implemented, Starbucks reportedly suffered high numbers of blocked or closed stalls due to “extreme soiling caused by drug-using, incontent vagrants.” It’s also possible the reduced traffic was a planned business-tradeoff in return for higher coffee prices, or preparation for a new, app-driven, digital strategy.
Whatever drove away Starbucks customers, the dirty bathroom ruckus provides insight: when you shift social responsibility approach, you change your entire business. A different set of customers may interact with your offerings in new ways. Ask yourself: do you know your new clients and the impact they will have? If not, find out, and plan accordingly. Change approach where it makes sense.
When was the last time you let the basics crap out when you tried to broaden your world?
Please share your thoughts in the comments or by sending me an email: info@RodWallacePhD.Com.
Our society cannot just survive. For the sake of our children, it must thrive.
Rod
Dr. Rod Wallace is an economist, consultant, and speaker who helps businesses make more money by solving society’s problems. A Fulbright Fellow, he has led multi-organization billion-dollar initiatives worldwide and partnered with a Silicon Valley pioneer to explore the impact of Artificial Intelligence on society.
Rod speaks about how to integrate social responsibility into business to maximize profit and purpose. He highlights digital technology’s impact on society and the strategies and tools with which business can solve our big, systemic problems.
Contact Rod at info@RodWallacePhD.com.