Howard Schultz, the chief executive officer of Starbucks has sent an urgent memo to franchises across the United States: All immigrants who have served as support personnel, or alongside US troops would be given preference in the hiring process. Over the next 5 years, Starbucks has committed itself to hiring 10,000 refugees amid a firestorm of protest against Donald Trump’s immigration plan. The main country targeted by the immigration law is Syria, but 6 other Muslim-majority countries are also included in the list. Schultz is a committed Democrat, and was an ardent supporter of Hillary R. Clinton. In an extraordinary display of defiance, Schultz pushed back against Trump on multiple fronts, including the following:

  • Starbucks will continue to support coffee growers in Mexico
  • Starbucks will provide healthcare to all eligible workers if Obamacare is repealed and replaced
  • How is Starbucks Performing with Its Mobile Order and Pay App?

    In 2015, Starbucks launched a pay app for mobile orders. It was designed to make Starbucks outlets more efficient. Unfortunately, too many Starbucks customers are using the app, eroding its efficacy, and making it a lengthy and difficult process for the company and queued customers. The chief operating officer of Starbucks, Kevin Johnson, alluded to the long lines that are evident at Starbucks during peak hours. This is a disincentive to customers wanting their coffee in the morning, lunchtime and after work. Mobile ordering has resulted in severe congestion for most Starbucks outlets, according to CEO Howard Schultz.

    On Friday, 27 January 2017, Starbucks shares dropped 4%. The reason for this sharp decline is same-store sales decreased across the US and fell shy of shareholder expectations. Of equal concern is the impending resignation of Howard Schultz in 2017. Schultz will be replaced by former CEO of Juniper Networks, Johnson. Investors and traders are reacting negatively to these issues, and it reflects in the lukewarm performance of Starbucks stock.

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