News Analysis
The Gist
- Brand vulnerability exposed. Starbucks protests during the Israel-Hamas conflict highlights the risks of corporate neutrality in politically charged situations.
- Social media's amplified impact. The case underscores how social media can escalate brand crises and broadens the scope of political involvement for businesses.
- Strategic PR crisis management. Starbucks' response to the backlash, including legal actions and dialogue moderation, showcases the complexities of navigating brand crises.
There are many signs of global volatility these days, but you know the world is truly hyper-volatile when even the choice of coffee becomes political. The recent Starbucks protests and the company's struggle with its image during the Israel-Hamas conflict demonstrates that attempting to be neutral can create significant brand risks because neutrality implies no stance on an issue. This situation underscores the importance of PR crisis management in navigating today's unpredictable marketing landscape.
The Starbucks Protests: The Tweet That Brought a War to Starbucks
The Starbucks protests linked to the Israel-Hamas conflict began when a barista union, Workers United, tweeted in solidarity with the Palestinians affected by the conflict. The tweet, which appeared shortly after a Hamas attack, contained the phrase "Solidarity with Palestine" and included the Starbucks logo.
The tweet was intended as an innocuous acknowledgment of the Palestinians and was removed 40 minutes after posting. However, Starbucks stated that its appearance generated a negative reaction among customers.
The CEO Response
Starbucks CEO Laxman Narasimhan commented on ensuing incidents of vandalism. “We see protesters influenced by misrepresentation on social media of what we stand for," he wrote. "We have worked with local authorities to ensure our partners and customers are safe. Nothing is more important. Our stance is clear. We stand for humanity."
Comment Sparks a Backlash
When Narasimhan's comment appeared online, it sparked backlash from both pro-Israel and pro-Palestinian activists. Both groups focused on Narasimhan's sentence: "We stand for humanity." Pro-Palestine activists perceived it as a withdrawal of support, while pro-Israel activists viewed it as a failure to firmly oppose Hamas. Consequently, the company's stores became targets for protests. It became apparent that Starbucks needed a PR crisis management strategy.
Lawsuits Filed
Starbucks filed a complaint against Workers United in U.S. District Court, claiming it was inappropriately associated with a political statement about the conflict. Workers United filed a countersuit.
Related Article: Adapting CX Strategies in Times of Crisis: Lessons From Global Disruptions
PR Crisis Management: When a Region’s Conflict Hits a Global Brand
Starbucks is a notable global brand that has been significantly impacted by the Israel-Hamas conflict because activists from both sides of the issue turned their attention to it — very unusual in an age where typically people with a shared perspective speak out against a brand, as seen in last year's Bud Light controversy.
Other Brands Impacted by the War
However, Starbucks is not the only brand impacted. CNBC reported that McDonald's experienced slower sales due to the Israel-Hamas conflict, with losses occurring in Middle Eastern restaurants. There are also reports of activist calls for boycotts of other American brands such as Domino's, Burger King and Coca-Cola.
Starbucks lost $11 billion in market value from the boycott, a 9.4% decline.
Other Contributing Factors
However, Starbucks faced other issues contributing to its share price loss. The stock price has been declining throughout 2023, and lagging holiday sales also cast a shadow on its revenue forecast.
Related Article: Why Is Starbucks so Successful Despite Its Mediocre Coffee?
Past Challenges to Brand Resonance
From a marketing viewpoint, the Starbucks protests introduce intriguing aspects of brand maintenance because they have heightened public attention on the Starbucks’ labor issues that have recently been in the news. One high-profile issue is the U.S. Supreme Court's recent acceptance to hear Starbucks' appeal of a lower court decision that determined the company must rehire a group of baristas. The lower court had ruled that Starbucks fired the workers in retaliation for their involvement in a national unionizing effort involving 380 stores.
A Non-Political Philosophy
Starbucks operates with a non-political philosophy. Like many corporations, its management does not typically comment on political issues or support individual political causes.
Starbucks’ Investments Overshadowed
The real politics for businesses often lie in a company's investment in projects closely related to their products, services and industries.
For example, Starbucks has invested over $25 million in programs meant to support coffee- and tea-growing communities, aiming to promote farmer equity and fair-trade practices.
However, these ongoing efforts often get overshadowed by individual stances that frequently dominate the news cycle.
Thinking About Politics
Politics, in rudimentary terms, means "the art and policy of dealing with people." In the past, the term was often restricted to policy discussions on Sunday morning news shows.
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But politics also refers to activities involved in influencing government actions.
The Impact of Social Media
The arrival of social media has broadened the scope of what politics means. The range of political actions, who sees them and who responds is much broader, with responses faster than what institutions have experienced in previous eras. The attack on the U.S. Capitol in January 2021 is a prime example of what social media commentary can lead to.
The prominence of wider media accessibility means that staying on message is a tremendous exercise and requires a strong PR crisis communication strategy. Executives must be prepared for the potential occurrence of a comment being perceived as too neutral for a public situation that is outside of a product, service or committed investment.
Related Article: Providing Customer Experience In Times of Crisis — Again
Avoiding Misrepresentation in the Marketing Message: What Should Marketers Do?
Conflicts like the Israel-Hamas war are dark topics that companies typically avoid. Management usually reserves commentary for complex social topics unless their resources are impacted.
But there are times when a response is necessary, so how can it be best done?
There are ways to create a constructive path forward when embroiled in a public conflict. Here are a few concepts to keep in mind:
PR Crisis Management Tip No. 1: Emphasize Empathy With a Point of View Rather Than Glossing Over It
Companies and marketers can find themselves in a tough spot when expressing support, especially when common ground is missing. However, some issues truly require specific acknowledgment of the emotion invested in them before discussing the principles your organization holds dear. Doing so can plant a seed for future reasonable dialogue in which common ground is possible.
It also helps with the acceptance of the message when a line is drawn. Those who oppose will still oppose, but the response may not be as vehement as one in response to a message lacking empathy.
PR Crisis Management Tip No. 2: Acknowledge That a Comment Will Likely Reach Beyond Company Walls
Comments aimed at employees and shareholders no longer stop at the rooms in which they are presented. Always expect that the audience will be larger than you realize.
PR Crisis Management Tip No. 3: Avoid Mixed Media Messages
Memes can help encourage a positive message, but they can also work against a brand, especially when intended humor or the mention of two topics in a social media post backfires.
Be cautious of snarky memes. They do not convey tone well, so it is possible to sound sharply critical and indicate taking a side. Any co-mingling of messages in a meme can inadvertently offend.
A brouhaha also disrupts any analytics plan because the engagement metric no longer represents measuring a brand message — only the response to an acerbic message, whether intentional or not. I can personally attest to ending business with a partner because they failed to recognize their posts as spreading misinformation.
Remind people of your online communication policy. Audit the profiles of key communicators for your brand — ensure that social media profiles indicate policies, such as how opinions and retweets do not reflect endorsements. The prominence of that phrase in a profile or pinned post is important for a reason.
PR Crisis Management Tip No. 4: Seek Good Moderators Where Possible
If necessary, choose experts such as historians and researchers — not charismatic popular thought leaders — to moderate dialogue between your company and opposing groups on the most charged issues. Discussions can be shared and recorded on LinkedIn Events and X (formerly Twitter) Spaces, allowing the casual nature of talks to help convey salient points to the public.
The right moderator choice can serve as a guidance counselor in those talks, highlighting the path forward.
Related Article: The Intersection of Public Relations and Customer Experience
The Epilogue to the Starbucks Crisis
Starbucks is finding its way forward in developing its crisis management. According to a recent CNBC report, the company is offering pay hikes to unionized workers. This move addresses a key labor issue and lays a foundation for resolving the legal action against Workers United.
As for public perception of its stance on the Israel-Hamas conflict and the Starbucks protests, time will tell how Starbucks will turn a corner. It is doing what it can to manage its message. Much of the decrease in protest will come from U.S. foreign policy toward Israel, as hopes for a ceasefire remain on the near horizon.
For marketers responsible for brand messaging and engaged in PR crisis management activities, such as those regarding the Starbucks protests, any movement away from responses perceived as volatile to more neutral, well-intended messages should be the goal of their efforts.
