Starbucks Memo

This memo is a strategic plan of how Starbucks should respond to the breastfeeding issue amongst not only its customers in Maryland but throughout the United States. It will outline the steps and suggestions needed to bring a resolution to this problem.

Background

The fourth guiding principle of Starbucks is to “Develop enthusiastically satisfied customers all the time”. Having top quality customer service is a part of the Starbucks brand. The incident below describes the situation that caused conflict with our mother with baby’s consumer market.

• In July, Lorig Charkoudian was asked to find a new location to breastfeed her 15 month old daughter in a Starbucks store in Maryland after the Starbucks employee received multiple complaints
• Lorig Charkoudian is an activist for residents in the city of Baltimore  and has been deeply involved in various causes and movements
• August 8, 2004, a Nurse-in also known as a sit-in was staged at the Starbucks location with 100 people
• The 100 people consisted of children, mothers, fathers, grandmothers and friends
• Starbucks responds with “Starbucks complies with all applicable state and local laws regarding breast feeding and that Starbucks would instruct our Maryland store partners to inform any concerned customer that by Maryland law”
• Ms. Lorig is not satisfied with the company’s response and wants Starbucks to allow breastfeeding in all of its 5,882 U.S. shops.

Discussion

This issue should be taken seriously before it gets out of hand.  As an activist of the community Lorig Charkoudian can make things very bad for the Starbucks brand.  The employee should have never approached the customer since it is legal for mothers to breastfeed in the state of Maryland. The “Nurse-in” has caused many problems with our target customer based. If we succumb to the breastfeeding issue what is to stop someone from requesting the company get involved in issues due to age, religion, gender, and sex.

It is up to the company analyst to decide what role mothers with newborns play into the future of the Starbucks Company. If we create a comfortable atmosphere for Breastfeeding mothers will it lead to isolation of our primary customer base? If they are an integral role within the company I have outline recommendations and changes we should incorporate in specific areas to satisfy both sides of the spectrum. If they have no effect on forecasted sales we should stand behind our first public statement of following whatever state and local laws allow in terms of breastfeeding.  

Recommendations

These recommendations are based off what is best for the Starbucks Company and its growth. It is better to get in front of the situation instead of expecting it to pass. The first step is to admit we were wrong as a company. The other steps are listed below:

1. Apologize to Ms. Lorig Charkoudian in a written letter outlining Starbucks new initiative with a $30 gift card to be used at any Starbucks of her choosing
2. All Starbucks employees will be required to attend a sensitivity training along with the 20 hours of online and in-store-on-the-job-training
3. In the Silver Spring, Maryland location where the incident happen create a breastfeeding section. In other locations with a very high demand also open other breastfeeding section within the Starbucks. The area will be open to all customers but will primarily be for mothers who want to breastfeed
4. Allow mothers of infants to have a free small coffee during select hours for one week in August to celebrate Breastfeeding Awareness Month
5. Pick a charity that donates to mothers with newborns and collect donations. Allow guest the opportunity to sign an artwork that represents the charity and post it around the store.

Other Issues

The stores with the Breastfeeding section will be experimental to see if we should create more breastfeeding sections or get rid of the entire idea. After a year Starbucks should follow-up with customers in the Starbucks store where the breastfeeding section were created to get opinions on new initiatives. Starbucks should speak with Owners to see if there was a change in profit due to these breastfeeding sections. Starbucks should check with Managers to see if there was a change in the culture within the store. The Breastfeeding section will only be placed in stores with a very high demand. Did we lose, gain or maintain customers with these new initiatives? Compare the results and move forward from there.