Starbucks' Howard Schultz: 'Ashamed' by arrests at Philadelphia store

Starbucks faces image crisis after arrest of 2 black men    
     Apr. 17 2018 7:30

Starbucks faces image crisis after arrest of 2 black men Apr. 17 2018 7:30

Starbucks' announcement about this "racial-bias education" comes five days after two black men were arrested at one of its locations in Philadelphia, Pennsylvania.

Video of the arrest filmed by a customer at the shop has been shared thousands of times on social media and prompted a rebuke by the company's CEO.

On May 29, over 175,000 employees across the United States will undergo racial bias education in order to "prevent discrimination and ensure everyone inside a Starbucks store feels safe and welcome". It will also be incorporating it into the training for all new employees.

Starbucks, which was once ridiculed for urging its employees to write "Race Together" on coffee cups to start a national conversation on race relations, has found itself through the looking glass: under fire for its treatment of black people.

All Starbucks company-owned retail stores and corporate offices will be closed in the afternoon of Tuesday, May 29.

After the arrest of two black men who sat in a Philadelphia Starbucks without buying a drink, Starbucks is going through a public relations tailspin - and the company can't seem to say mea culpa fast enough. She gives the address of the Starbucks store.

In an interview with Gayle King on "CBS This Morning", Schultz says that the arrest of the two men, who had the police called on them while they were waiting for a third friend to arrive before placing their order, was "reprehensible". I take it personally, and we're committed to making it right. "We're taking a hard look at who we are as a company". To be sure, Starbucks doesn't split out USA revenue from the Americas, so Bloomberg's estimates are on an average per-store basis - and based on figures for fiscal 2017, which ended October 1 past year (the company also owns stores in Canada and Brazil).

"As far as the company's initiative to rectify this situation by closing all stores for racial bias education training, it's a positive start", Mr. McCallum said.

The (estimated) cost could well be worth it for the coffee behemoth, as it faces opprobrium in its home - and biggest - market after a manager summoned police after two men waited at a Starbucks table without ordering.

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