Starbucks Closing Stores Cost $6 Million in 2008 - Business Insider

Starbucks' 2018 Store Closures

In 2018, Starbucks closed all its US stores for a half-day to conduct racial-bias training for its employees. This decision followed the viral video of two black men being arrested at a Philadelphia Starbucks.

Financial Implications

This closure cost the company an estimated $6 million in lost revenue. This was not unprecedented, however; in 2008, a similar company-wide closure also resulted in an approximate $6 million loss.

Historical Context

The 2008 closures occurred when Starbucks was struggling financially and needed to retrain employees to turn the company around.

In 2011, Howard Schultz's book, Onward, detailed the 2008 event. He highlighted its importance in reviving employee morale and trust.

• Despite the financial loss, the 2008 closures are viewed as a critical step towards the company's recovery.
• The 2018 closures follow a similar pattern, aiming to address crucial issues and re-emphasize core values.

Outcome

Both instances demonstrate Starbucks' commitment to investing in employee training and cultural change, even at significant financial cost. The closures were seen as symbolic acts that reinforced internal values and restored trust.