Starbucks: Crisis response done right

Quest's Profitable MomentTwo black men were arrested at a Philadelphia Starbucks for...

Posted: Apr 20, 2018 12:22 PM
Updated: Apr 20, 2018 12:22 PM

Quest's Profitable Moment

Two black men were arrested at a Philadelphia Starbucks for doing absolutely nothing. A photograph of the incident was seen around the world.

It was a potential disaster for Starbucks. Recognizing that, CEO Kevin Johnson immediately came out and announced that Starbucks was going to put it right.

He said the store manager had been wrong to call the police. It was wrong to have the men arrested. The only ones not in the wrong were the two men waiting inside the Starbucks.

Not only did Johnson apologize, but he announced that 175,000 Starbucks employees in the United States would undergo unconscious bias training.

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You could say it was a textbook example of how to handle a PR disaster. But it's deeper than that for Starbucks.

If you look at the company's values and mission statements, the CEO was simply practicing what Starbucks preaches.

In trying to put things right, Johnson was making sure the company was living up to its principles.

This is a lesson for every other CEO out there: Don't head for the hills at the first sign of disaster like Facebook and Equifax. Take a sip from Starbucks' cup and face it head-on.

Do what's right. Your investors and your customers will thank you for it.

Big banks are minting money

President Trump has been very kind to America's biggest banks. His corporate tax cut has fueled blockbuster profits. And the recent market mayhem, which Trump played a role in, was good for banks, too. Morgan Stanley and Bank of America reported record earnings this week. And JPMorgan hauled in the biggest quarterly profit by a US bank. Ever. Yet the mega profits haven't impressed shareholders much. They know markets won't be volatile forever. And tax rates won't keep shrinking. The underlying business - lending money - will need to accelerate for banks to sustain the success. - Matt Egan

'Fearless Girl' is moving

The fate of the "Fearless Girl" statue is finally resolved: After spending more than a year staring up at the iconic "Charging Bull," the bronze statue will move to face the New York Stock Exchange by the end of the year. It's not a big change - right now, both "Fearless Girl" and the "Charging Bull" are in a small park a few blocks from Wall Street and the NYSE. But the relocation means that the statue, which has become a beloved symbol of empowerment and the push for gender equality, is ensured a long-term home in Manhattan's financial district. The bull might move, too, though the city hasn't said when or where. - Danielle Wiener-Bronner

Weak dollar is good for big US companies

Trump accused China of playing a currency devaluation game - days after the Treasury Department failed to call out China for currency manipulation. The dollar has lost ground versus the yuan and other currencies this year. That's great for blue chips like Oracle, FedEx and Nike. A weaker dollar makes their products less expensive overseas and lifts the value of international sales once they are translated back into dollars. But how much longer will the greenback stay in the doldrums? More Fed rate hikes should boost the dollar. Trump even said in January the dollar will get "stronger and stronger." - Paul R. La Monica

'Black Panther' comes to Saudi Arabia

Saudi Arabia ended a decades-long ban on movie theaters with a screening of Disney's "Black Panther" this week. The opening of the AMC theater in the Saudi capital of Riyadh is part of an economic overhaul that the kingdom hopes will spur growth and diversification, and reduce its economic dependence on oil. More theaters are expected: Both AMC and Vue International plan to open dozens of cinemas in the coming years. - Jill Disis

Quick takes

St. Louis Fed President James Bullard told Quest on Wednesday he worries that the flattening yield curve means a recession is on its way. Meanwhile, Trump picked a vice chairman and a Fed governor to fill two more empty seats on the Federal Reserve Board.

China introduced a huge import charge on US shipments of sorghum, a grain that is used to feed livestock and make a liquor that's very popular with Chinese drinkers.

Toys "R" Us rejected a $675 million bid for 200 of its remaining 735 US stores. Isaac Larian, the billionaire toymaker behind Bratz dolls and Little Tikes, said he'd keep fighting to buy Toys "R" Us.

Netflix added 7.4 million subscribers in the first three months of 2018, the vast majority of them outside the United States. Netflix now has 125 million subscribers.

Amazon has more than 100 million Amazon Prime subscribers around the world, Jeff Bezos told shareholders in an annual letter. And Amazon is expanding its footprint in physical stores, partnering with Best Buy to sell smart TVs.

What's next

GE's financial report: General Electric will report its first-quarter financial results on Friday, and will hold its annual shareholders meeting on Wednesday. GE faces a mountain of problems, including a ton of debt, a pile of legal troubles, the biggest pension shortfall in the S&P 500 and a cash crunch caused by decades of bad decisions. GE shares are down 20% this year.

Facebook faces investors: Facebook will report earnings on Wednesday, facing Wall Street analysts for the first time since its data privacy scandal erupted in March. CEO Mark Zuckerberg survived his testimony before Congress earlier this month, but analysts could ask tough questions about how Facebook plans to restore customers' trust without angering advertisers.

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 33558

Reported Deaths: 2110
CountyConfirmedDeaths
Marion9616571
Lake3538185
Cass15897
Allen145168
St. Joseph124834
Elkhart116328
Hendricks116171
Hamilton115693
Johnson1093108
Madison58559
Porter51627
Bartholomew50034
Clark49241
LaPorte42423
Howard39526
Tippecanoe3903
Jackson3791
Delaware37736
Shelby36822
Hancock32728
Floyd31839
Boone30935
Morgan27824
Vanderburgh2652
Montgomery23517
White2318
Decatur22431
Clinton2231
Noble21121
Grant20621
Harrison19221
Dubois1923
Henry16910
Greene16824
Monroe16612
Warrick16628
Dearborn16621
Vigo1648
Lawrence15423
Miami1411
Putnam1367
Jennings1304
Orange12522
Scott1193
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Marshall901
Daviess8516
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Fayette767
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Washington521
Jay500
Fulton481
Clay471
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Randolph463
Pulaski460
Jefferson431
Whitley393
Starke363
Sullivan341
Owen341
Brown331
DeKalb331
Perry310
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Knox290
Wells280
Huntington272
Tipton251
Crawford240
Blackford242
Fountain202
Switzerland200
Spencer191
Parke170
Posey160
Gibson142
Adams131
Ohio130
Warren121
Martin110
Vermillion100
Union80
Pike60
Unassigned0164

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 117455

Reported Deaths: 5270
CountyConfirmedDeaths
Cook762663570
Lake8063287
DuPage7543362
Kane6188170
Will5442269
Winnebago215654
McHenry151471
St. Clair109179
Kankakee87144
Kendall76919
Rock Island64624
Champaign6177
Madison56558
Boone42817
DeKalb3924
Sangamon34629
Jackson26810
Randolph2674
McLean21713
Peoria2128
Ogle2023
Stephenson1992
Macon19519
Clinton18117
Union1519
LaSalle14713
Whiteside13512
Iroquois1314
Coles12514
Unassigned1250
Out of IL1191
Warren1130
Jefferson10116
Knox970
Grundy952
Monroe9411
McDonough878
Lee791
Cass710
Tazewell714
Henry680
Williamson642
Pulaski510
Marion500
Jasper457
Macoupin452
Adams441
Perry420
Montgomery391
Vermilion391
Morgan351
Christian334
Jo Daviess320
Livingston322
Douglas260
Menard210
Fayette203
Ford201
Jersey201
Woodford192
Mason180
Washington180
Mercer170
Hancock160
Shelby161
Bureau151
Carroll142
Bond121
Franklin120
Piatt120
Schuyler120
Clark110
Crawford110
Fulton110
Moultrie110
Brown100
Cumberland100
Logan100
Wayne91
Alexander80
Henderson80
Effingham71
Johnson70
Massac70
Saline70
Greene50
Marshall50
De Witt40
Lawrence40
Richland30
Stark30
Clay20
Edwards20
Gallatin20
Hamilton20
Wabash20
White20
Calhoun10
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Hardin10
Pike10
Pope10
Putnam10
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A wonderful Saturday with sunshine expected!
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