Starbucks’s value has sharply declined since mid-November, falling by about 9 percent, marking a decline of $11 billion in its market cap.
In an open letter to employees on Tuesday, Starbucks CEO Laxman Narasimhan condemned the vandalism of stores and escalating protests in the U.S. and abroad, attempting to clarify the company’s position amid the war on Gaza.
The renowned American coffee shop chain has been a target of severe boycotts after it sued the union organising its workers over a pro-Palestinian social media post from a coalition account.
Starbucks wanted to stop the union called Starbucks Workers United, which represents some 9,000 workers, from using its name and logo, saying the company had no official stance on the war and the union’s post might divide its customer base.
Now, Starbucks CEO is scaling back after a New York store had been spray-painted with pro-Palestinian graffiti, and several employees of stores have been bashed for being anti-Israel.
“While I am grateful for so much, I am concerned about the state of the world we live in. There are conflicts in many parts. It has unleashed violence against the innocent, hate and weaponized speech and lies — all of which we condemn,” Narasimhan wrote.
“Our stance is clear. We stand for humanity,” he added.
According to AP News, Seattle-based Starbucks won’t say how its sales have been impacted.
The company’s next quarterly sales report will come out in February. However, there are indications Starbucks is taking a sales hit.
Amid staff strikes and growing boycotts, Starbucks has been hit by an $11 billion value loss, AP News reported.
Since November 16, shares plummeted 8.96%, triggering a 12-day consecutive decline—the longest in its history, per a report.
“Since November 16, coinciding with the Red Cup Day promotion, Starbucks’ shares have nosedived by 8.96%, accounting for the mammoth $11 billion loss. This catastrophic plummeting, along with reports of sluggish sales and a lukewarm reception to their holiday lineup, has cast a shadow over the company’s prospects,” the report added.