Starbucks: Reaffirming Commitment to the Third Place Ideal 

On the morning of April 12, 2019, Kevin Johnson, CEO of Starbucks, the Seattle-based
coffee chain and packaged goods purveyor, entered one of the company’s downtown stores to
get his morning joe. As he waited for his coffee, he observed the store’s diverse set of
customers, who ranged from businesspeople in suits to college students working on laptops to
tourists on their way to the Space Needle. Meanwhile, the half-dozen partners a—who also
represented a range of ages, races, and backgrounds—were busy taking orders, making
custom drinks, restocking food items, and tidying up different areas of the store. The scene
prompted Johnson to reflect. 
Exactly one year earlier, a store manager at a Philadelphia Starbucks called 911 on two young
African-American men in her store who were behaving neither violently nor disruptively.
Police soon arrived on the scene and arrested the young men. Johnson later described the
incident as “a disheartening situation that led to a reprehensible outcome.” Starbucks, which
employed around 175,000 individuals nationwide and served more than 4 million customers
daily in its approximately 8,000 U.S. stores,1, 2 strived to abide by its mission statement: “…
To inspire and nurture the human spirit, one cup, one person, one neighborhood at a time.” 3 It
also sought to be “Third Place” for its customers: somewhere other than home or work where
anyone could go to feel welcome, safe, respected, comfortable, and connected. What
transpired in Philadelphia had been, in the words of John Kelly, the company’s Senior VP of
Public Affairs and Social Impact, “A profound failure to live up to our ideals and a violation
of our values that jeopardized our entire sense of purpose.” 
In the wake of the incident, Johnson and his leadership team attempted to understand what
had occurred and why. Beyond defusing the immediate crisis, they also wanted to ensure that
nothing similar would happen again. Within days, certain Starbucks policies were revised. A
few weeks later, the company closed all of its U.S. stores for an afternoon to conduct racial-
bias training for all employees. Subsequently, the Starbucks Support Center (SSC) b began
producing a variety of resources designed to help partners better handle situations they might
face in the stores, and to empower them to more effectively grapple with complex societal
questions and challenges. Efforts to repair other relationships strained by the incident—with
the neighborhood, the city of Philadelphia, and the city’s police department—were also
initiated.
As the barista smiled and handed him his customized drink, Johnson recognized that while he
was proud of the progress Starbucks had made in the past year, the company’s journey had
only begun. For Starbucks to truly fulfill its mission—to live up to its Third Place aspirations
and make the positive societal impact its leaders envisioned—the company would have to be
vigilant. There were more lessons to learn, more partnerships to be formed, and adaptability
would have to increase. It would be a challenging road, Johnson knew, requiring large
amounts of both humility and optimism.

Starbucks: Menegaskan kembali Komitmen pada Ideal Tempat Ketiga

Pada pagi hari tanggal 12 April 2019, Kevin Johnson, CEO Starbucks, rantai kopi yang
berbasis di Seattle dan pemasok barang dalam kemasan, memasuki salah satu toko di pusat
kota perusahaan untuk mendapatkan joe paginya. Saat menunggu kopinya, dia mengamati
beragam pelanggan toko, yang berkisar dari pebisnis berjas hingga mahasiswa yang
mengerjakan laptop hingga turis dalam perjalanan ke Space Needle. Sementara itu, setengah
lusin partnera — yang juga mewakili berbagai usia, ras, dan latar belakang — sibuk
menerima pesanan, membuat minuman khusus, mengisi ulang makanan, dan merapikan area
toko yang berbeda. Adegan itu mendorong Johnson untuk merenung.
Tepat satu tahun sebelumnya, seorang manajer toko di Starbucks Philadelphia menelepon 911
pada dua pria Afrika-Amerika muda di tokonya yang tidak berperilaku kasar maupun
mengganggu. Polisi segera tiba di tempat kejadian dan menangkap para pemuda tersebut.
Johnson kemudian menggambarkan insiden itu sebagai "situasi yang mengecewakan yang
mengarah pada hasil yang tercela." Starbucks, yang mempekerjakan sekitar 175.000 orang
di seluruh negeri dan melayani lebih dari 4 juta pelanggan setiap hari di sekitar 8.000
gerainya di AS, 1, 2 berusaha untuk mematuhi pernyataan misinya: “… Untuk menginspirasi
dan memelihara jiwa manusia, satu cangkir, satu orang, satu lingkungan pada satu waktu. ”3
Ia juga berusaha menjadi“ Tempat Ketiga ”bagi pelanggannya: tempat selain rumah atau
kantor di mana siapa pun dapat pergi untuk merasa diterima, aman, dihormati, nyaman, dan
terhubung. Apa yang terjadi di Philadelphia adalah, dalam kata-kata John Kelly, Wakil
Presiden Senior Urusan Publik dan Dampak Sosial perusahaan, "Kegagalan besar untuk
memenuhi cita-cita kita dan pelanggaran terhadap nilai-nilai kita yang membahayakan
seluruh tujuan kita."
Setelah insiden tersebut, Johnson dan tim kepemimpinannya berusaha memahami apa yang
telah terjadi dan mengapa. Selain meredakan krisis langsung, mereka juga ingin memastikan
bahwa tidak ada hal serupa yang akan terjadi lagi. Dalam beberapa hari, kebijakan Starbucks
tertentu direvisi. Beberapa minggu kemudian, perusahaan menutup semua tokonya di AS
pada sore hari untuk melakukan pelatihan bias rasial bagi semua karyawan. Selanjutnya,
Starbucks Support Center (SSC) mulai memproduksi berbagai sumber daya yang dirancang
untuk membantu mitra menangani situasi yang mungkin mereka hadapi di toko dengan lebih
baik, dan untuk memberdayakan mereka agar lebih efektif bergulat dengan pertanyaan dan
tantangan sosial yang kompleks. Upaya untuk memperbaiki hubungan lain yang tegang
akibat insiden tersebut — dengan lingkungan sekitar, kota Philadelphia, dan departemen
kepolisian kota — juga dimulai.
Saat barista tersenyum dan menyerahkan minumannya yang disesuaikan, Johnson menyadari
bahwa meskipun dia bangga dengan kemajuan yang telah dicapai Starbucks dalam setahun
terakhir, perjalanan perusahaan baru saja dimulai. Agar Starbucks benar-benar memenuhi
misinya — untuk memenuhi aspirasi Third Place dan membuat dampak sosial positif yang
dibayangkan para pemimpinnya — perusahaan harus waspada. Ada lebih banyak pelajaran
untuk dipelajari, lebih banyak kemitraan yang harus dibentuk, dan kemampuan beradaptasi
harus ditingkatkan. Ini akan menjadi jalan yang menantang, Johnson tahu, membutuhkan
banyak kerendahan hati dan optimisme.

Company History
Starbucks Coffee, Tea, and Spice was founded in 1971 by Gordon Bowker, Jerry Baldwin,
and Zev Siegl, who opened their store in the Pike Place Market on the Seattle waterfront.
Initially the company sold only dry goods, not brewed beverages. In 1981, Howard Schultz
joined Starbucks in a marketing and operations role. He departed in 1985 to start his own
company, a coffee bar inspired by cafes he had visited in Italy where customers chatted,
relaxed, and lingered. His new establishment also specialized in espresso beverages—e.g.,
lattes and cappuccinos, which at the time were not widely available in the United States.
Schultz’s business took off, and in 1987 he purchased Starbucks’ name and other assets (nine
stores and a roasting plant, which together employed around 100 people) for $3.8 million.
Following the acquisition, Schultz and his team pursued aggressive expansion in the Pacific
Northwest and, later, nationwide. By 1992, there were approximately 150 Starbucks cafes in
North America. That same year, Starbucks went public in an IPO that valued the company at
more than $250 million.4, 5 
Starbucks would grow into one of the largest and most recognizable brands in the world.
Considered by many to be the exemplar of the “Second Wave” coffee movement, in which
coffee became more than merely a commodity product for more consumers and something
closer to a status product, the company was credited with introducing millions of Americans
to higher-quality coffees, darker roasts, and espresso drinks, as well as the Italian coffee bar
experience. Expansion into international markets also commenced.
In 2000, Schultz stepped aside as CEO and assumed a global strategy role with the company.
He returned to the chief executive position in 2008, amid a slump that was attributed to
overly aggressive expansion, a decline in product quality and customer satisfaction, and
customers seeking less-expensive options in the face of a financial crisis. Schultz pulled
Starbucks out of its tailspin by emphasizing the customer experience and strengthening the
company’s emotional connection with patrons.
Schultz’s second stint as CEO ended in April 2017. As his successor he chose Johnson, a
veteran Starbucks board member and trusted friend who had held executive positions at
Microsoft and Juniper Networks. “At the time I was retired,” said Johnson, “and, having
survived a health scare, I thought I’d stay that way. But when Howard presented the idea, and
my wife pointed out how much I have always loved the company, I could not resist.” By
spring 2019, Starbucks was valued at approximately $100 billion 6 (good for 121st on the
Fortune 500 list)7, with year-over-year revenues near $25 billion.8 
There were more than 30,000 Starbucks locations worldwide, 9 including more than 8,500
company owned stores in the United States. 10, c Starbucks had been featured on Fortune
magazine’s “World’s Most Admired Companies” list for 16 consecutive years, most recently
coming in at number five, and was also a mainstay on lists of the best companies to work for
and the most ethical companies.11 (See Exhibit 1 for additional company information
including executive bios, financials, and timelines.)

“The kind of company that my father never got to work for...” 

From Schultz’s earliest days at CEO, he believed that Starbucks’ most important
organizational asset was its relationship with employees. He had long been interested in
companies’ obligations to their workforces, and as a young leader vowed to “do something
that would guarantee people wouldn’t be left behind.” Starbucks presented him with this
opportunity. “I always wanted to build the kind of company my father never got to work for,”
he said, referring to his father’s career as a cab driver, truck driver, and factory laborer.12 
Starbucks instituted a range of policies and programs designed to support and show
appreciation for its partners. In 1988, the company began offering full health benefits to full-
and part-time employees (those working at least 20 hours per week) and their family
members, including domestic partners—a gesture that was rare at the time. Three years later,
Starbucks became the first privately owned U.S. company to offer a stock-option program to
part-time employees. In 1998, Starbucks established an emergency financial assistance fund,
called the CUP, to help partners facing illness, natural disaster, or some other crisis. In 2014,
the company offered qualifying partners the opportunity to complete college degrees, with
full tuition coverage, through Arizona State University’s online program—a “first of its kind”
partnership. Starbucks expanded the College Achievement Program in 2017 when it added a
Pathway to Admissions sequence for those who were academically ineligible. 13 Schultz
summarized the company’s philosophy at the 2017 shareholder meeting, saying, “Not every
decision is an economic one. We recognize what our responsibility is in addition to making a
profit.”14 
That philosophy went beyond benevolence. Schultz believed that high levels of employee
support were necessary for the continued success of the business. Happier and better-
appreciated workers, he reasoned, would be higher performing and have longer tenures with
the company, and they would also serve their customers better, making customers happier
themselves. “It’s an ironic fact,” he pointed out,
That while retail and restaurant businesses live or die on customer service, their employees
have among the lowest pay and worst benefits of any industry. These people are not only the
heart and soul but also the public face of the company. Every dollar earned passes through
their hands. In a store or restaurant, the customer experience is vital. One bad encounter, and
you’ve lost a customer for life.15 
Starbucks was also conscious of whom it was hiring. In 2013, the company committed to
hiring 10,000 military or first-responder veterans and spouses. Schultz saw the commitment
as an opportunity to help veterans, many of whom were struggling with unemployment and
other difficulties after leaving the armed services, and as a way to recruit individuals who
shared the company’s values of customer and community service. By 2018, it had exceeded
its goal by more than double.16 
Additionally, in 2013, Starbucks pledged to hire 10,000 at-risk, or “opportunity,” youth by
2018.17 To do so, it founded a non-profit organization called LeadersUp to identify and
connect candidates, not just for Starbucks, but for a consortium of companies—Alaska
Airlines, Cintas, CVS Health, Hilton Worldwide, HMSHost, JCPenney, JPMorgan Chase,
Lyft, Macy’s, Microsoft, Porch.com, Potbelly Sandwich Shop, Taco Bell, Target, Walgreens,
and Walmart—that had agreed to join the Starbucks-led 100,000 Opportunities Initiative. By
mid-2019, more than 200,000 opportunity youth (individuals 16 to 24 who are neither
employed nor in school, and who face systemic barriers to both) had been hired into entry-
level positions by more than 55 corporate partners and through the assistance of 300
community based partner organizations.18 The goal was one million hires by 2021. In 2015,
Schultz also issued a statement expressing his support for the “Ban the box” campaign, which
encouraged employers not to ask about a candidate’s criminal history on job application
forms. “In America, opportunities take many forms,” he wrote in a letter to Senator Cory
Booker. “Freedom. Education. The support of family and community. A job. Sometimes that
opportunity is simply a second chance. Unfortunately, access to these and other advantages is
not yet a reality for all Americans.”19 
Roles and Training 
According to Johnson, because stores were the most important units of Starbucks, “the most
important job in the company” was the Store Manager. Store Managers were salaried
employees responsible for “creating and maintaining the Starbucks Experience for customers
and partners.” More specifically, according to the official job description, they were expected
to Regularly and customarily exercise discretion in managing the overall operation of the
store. In particular, a majority of time is spent supervising and directing the workforce,
making staffing decisions (i.e., hiring, training, evaluating, disciplining, discharging, staffing
and scheduling), ensuring customer satisfaction and product quality, managing the store’s
financial performance, and managing safety and security within the store. The incumbent is
responsible for modeling and acting in accordance with Starbucks guiding principles.20 
The average age for Store Managers was close to 35. Top store managers were recruited to
become trainers. For some, the training position was a stepping stone to a more senior district
or regional role.
Other roles in Starbucks stores were Shift Supervisors and Baristas, both of which were
hourly positions. The former were responsible for store operations during their shifts. This
often meant following the “Playbook,” a document produced by the SSC that prescribed how
many partners should be performing various tasks (e.g., working the registers, making
beverages) given the time of day and number of workers on the clock. Baristas performed a
range of tasks in the store. Upon hiring, they underwent two weeks of training, which
involved shadowing experienced employees to learn how to make drinks, interact with
customers, and deliver the desired customer experiences. In addition to considering factors
such as whether candidates were veterans or opportunity youth, Starbucks also sought to hire
partners who lived locally to increase the stores’ connections to their communities. The
average age for Shift Supervisors and Baristas was approximately twenty-six.
Nearly all Store Managers and Shift Supervisors started out as baristas and were promoted
from within. Newly appointed Store Managers attended Store Manager Training (SMT) at
one of the two designated training stores per district. The 30-day SMT consisted of extensive
shadowing, as well as digital modules delivered through Apple iPads that Molly Hill,
Starbucks’ Vice President of Global Talent, characterized as “fairly prescriptive.” Once back
in their stores and on the job, new Store Managers were still considered to be in training. At
regular intervals, such as at days 90 and 180, formal checkups were conducted. At these
stages, participants were encouraged to share experiences and best practices with members of
their cohort, and to engage in deep reflection.
Above the store level, Starbucks’ structure primarily operated on factors of ten: 10 Store
Managers typically reported to a District Manager; 10 District Managers then reported to a
Regional Director; 10 Regional Directors then reported to a Regional Vice President. The
geographic size of regions therefore varied widely, as did the types of stores within certain
regions. “You could have 10 stores on the Upper West Side in Manhattan that are fairly
similar, or 10 stores spread across an area with lower density that serve very different
clientele,” said Hill, adding, “District Managers mostly coach Store Managers and help with
facilities issues. At the regional level, directors and VPs are dealing with larger strategy and
leadership issues.” Anyone hired into one of these more senior positions from outside the
company was required to attend the two-week Barista training to learn about operations and
situations in stores in their region.

The Third Place 

According to Kelly, successfully delivering on the Third Place promise was “the great
differentiator for Starbucks,” adding that the company’s stores “had never posted ‘No
Trespassing’ signs, signs that said ‘only for customers,’ or had any kind of ‘No shirt, no
shoes, no service’ policies.” Schultz believed that, during its rapid expansion of the early
2000s, the company had shifted away from providing Italian-style gathering places where
people relaxed, lingered, and conversed. For example, he felt that fewer baristas remembered
customers’ names, that the company’s new espresso machines too often prevented eye
contact between partners and patrons, and, perhaps most importantly, that fewer store
managers seemed invested in the company’s values and were instead preoccupied with
margins and bottom lines. Additional concerns included the comfort and aesthetics of new
stores (which some customers felt weren’t as welcoming), in-store music, and even the smell
of burned food overpowering the smell of coffee. To get the company back on track, Schultz
solicited feedback from customers and partners, and implemented many of their suggestions.
Said one store manager: 
We want to provide all the comforts of your home and office. You can sit in a nice chair, talk
on your phone, look out the window, surf the web . . . oh, and drink coffee too. The idea
behind customer service here is to make it one that isn’t just good, we want to make it great.
If people have a bad experience, they’ll tell 7 people. If they have an average experience,
they’ll tell no one. If they have a great experience, they’ll tell 2-3 [people]. Making it a great
experience, though, isn’t just about service. If they have a problem (bad drink, cracked lid,
etc.), we want to do everything to make it right, then and there.21 
Rossann Williams, Starbucks’ Executive VP of U.S. Retail, who frequently visited stores
nationwide, said that one experience she had in a Starbucks store in an affluent neighborhood
north of New York City captured the essence of the Third Place ideal: 
The store is located in a train station, which means that many customers are in a hurry, on
their way from one place to another, often to work in Manhattan. Due to the location and the
clientele, it’s more of a counter than a fully built-out store. Furthermore, partners who drive
to work there have to pay to park. Whether or not to reimburse for employee parking is an
issue we’ve grappled with for some time. We know from experience that it can have an
impact on employee morale. In fact, the store has had one of our highest rates of partner
turnover. When I arrived, I discovered a stool in the back storeroom and asked the store
manager, a young woman called Annie, what it was doing there. It turned out that the stool
belonged to a man who visited the store nearly every day. He would come in, sit near end of
the bar, and chat with the customers and partners. The stool had been a solution to the store’s
limited seating, and Annie had offered to let him keep it in the back room so he wouldn’t
have to haul it back and forth every day. I met the man later that day and asked him what
drew him to the store. He said that the people there felt like his family. The entire situation
was a reflection of Annie and her approach, which she summed up for me. ‘My responsibility
is to spread joy,’ she said.
One result of this approach, which company leaders claimed intensified after Schultz's return,
was that many customers used the phrase “My Starbucks” to refer to the store in their
community, or the one they frequented the most. “The store-level is the essential Starbucks
unit,” said Williams. “For partners, it’s their Starbucks family. For customers, it’s the
partners and other regulars they see over and over, who they get to know.” As an example of
the type of deep connections that can form, a group of regulars at a Manhattan Starbucks was
so upset to learn that their location was closing, despite there being several others within a
few blocks, that they started a petition and gained national news coverage for their
campaign.22 
“The complexity of life is increasing” 
By the mid-2010s, Starbucks was increasingly finding its stores on the front lines of
significant societal challenges. “We like to think of Starbucks stores as welcoming public
spaces, similar to public libraries, offering hand-crafted beverages and food,” said Kelly.
“But the complexity of life in and around stores has been increasing.” In many major cities,
that meant more and more people facing housing insecurity and homelessness. The
nationwide opioid crisis had also found its way into Starbucks stores. “We have seen an
increase in the misuse of our restrooms relating to drug usage,” 
said Camille Hymes, Vice President of Operations for the Mid-Atlantic region. “This
corresponds with unsafe and unsanitary conditions for our partners and customers—for
instance, with used needles ending up in the trash bags. In the Mid-Atlantic region alone, we
are faced with dozens of in-store overdoses annually. Unfortunately, many are fatal. Every
experience can be very traumatic for our partners.” (See Exhibit 2 for additional information
on homelessness and the opioid crisis.) 
Meanwhile, race-related issues were also gaining increased national attention. Beginning in
2013, a series of high-profile killings of unarmed African-Americans by police (few of whom
received formal punishments) gave rise to the Black Lives Matter activist movement. In
subsequent years, leaders of the movement used social media and mass demonstrations to
shed light on examples of what they considered systemic racism, discrimination, and
violence. Beginning in 2016, many saw the election of President Donald Trump, and many of
his administration’s policies, as further evidence that the United States had entered a period
in which progress for people of color had stalled, if not reversed course. It was a time of
racial tension and increased visibility of white nationalism. 
Coffee with a Cop and #RaceTogether 
In 2011, to further its commitment to societal change and community impact, Starbucks
began hosting events for Coffee With a Cop, “a grassroots program that brings law-
enforcement personnel together with the people they serve in a comfortable environment.” 23
The events gave citizens the opportunity to ask questions, and officers the chance to talk
about the pride they took in their work. According to Kelly, “The ‘Third Place’ that
Starbucks has become is increasingly a place . . . to convene members of the community . . .
to promote dialogue, empathy, and stronger neighborhoods.” By 2016, Coffee With A Cop
had held events in all 50 states, as well as Canada, Europe, Australia, and Africa.24 
Not every attempt Starbucks made to have a positive impact on society went according to
plan. In 2015, Schultz launched a campaign to promote conversations between partners and
customers about race and race relations. Those conversations, the company hoped, would
inspire a wider national dialogue. Conversations were to be initiated by baristas writing
#RaceTogether on customers’ coffee cups. As part of the campaign, the company produced a
series of “conversation starters” that were displayed in stores and published in the USA
Today newspaper. The campaign was widely ridiculed as superficial and Schultz was
attacked by those who believed a white billionaire lacked the perspective to lead
conversations on such a sensitive topic. Starbucks halted the campaign within several weeks,
yet Schultz vowed to continue addressing the topic of race, both at forums with partners and
via other Starbucks initiatives. Even his missteps, he argued, would provide opportunities for
himself and others to learn which approaches were helpful and which were not.

The Incident in Philadelphia 

At around one o’clock in the afternoon on April 12, 2018, a Thursday, two 22-year-old
African American men entered a Starbucks in Philadelphia’s Rittenhouse Square
neighborhood.d Aspiring entrepreneurs who had been friends since fourth grade, they were
scheduled to meet a local businessman, who was white, to discuss a business opportunity.
The two men arrived early, so they found an empty table and sat down to wait. One of the
men had been a customer at this Starbucks since he was 15 years old. Yet when one of them
asked to use the restroom, an employee denied the request, citing store policy that bathrooms
were for customers only, and that only those making a purchase were considered customers.
Moments later, the employee approached the men again and asked if they “needed help.”
They said they did not, and noted that they were there for a meeting. When the employee told
them that they needed to either make a purchase or leave, the men remained seated. Within a
few minutes, two police officers entered the store, responding to a 911 call placed by the
store manager.
When the officers began to question them, the men again explained that they were waiting for
a business associate and again declined to leave. The exchange—which lasted approximately
four minutes without escalating to raised voices or physical violence—was punctuated by a
warning from one of the officers that the men had only “one more chance to leave.” At this
point, four additional officers had responded to a call for backup and the individual the men
were scheduled to meet arrived on the scene and confirmed their appointment. He then
suggested that the officers were treating the two men differently, and unjustly, because they
were black. He also encouraged other customers to speak up and agree that the police’s
actions were “ridiculous.” Despite additional objections from the two men, their associate,
and other customers, the police remained. When the business associate agreed to hold the
meeting elsewhere, the police stated that the two men were no longer free to leave. They were
handcuffed, led out of the store, taken to the local police station, and placed in a cell. For
hours, they were given no information regarding how long they would be held or when they
would be able to contact their families or their lawyers. It was not until late in the evening
that they were released with no charges having been filed.e 

Responding to the Crisis 

Some Starbucks leaders, including regional and national directors and several executives,
first learned about the Philadelphia incident on Thursday evening. “Every night we receive an
email update regarding issues that have arisen in our stores that day,” said Kelly. “That initial
report merely said that two men had been arrested in a Philadelphia store. That alone wasn’t
unusual or a cause for alarm. With tens of thousands of stores worldwide, there is always
something going on.”
Friday, April 13
The following day, video of the episode taken by a customer, which had been posted online,
began to go viral. “For a lot of us,” said Williams, “the first reaction was disbelief. This
couldn’t happen in one of our stores. Someone doctored the videos. Those were the types of
thoughts we were having.” Added Kelly, “Initially, the big question was, ‘What really
happened?’ It didn’t make sense. The video showed two well-behaved customers being
handcuffed and arrested. Surely there was more to the story. Quickly Starbucks was
becoming the target of intense criticism, and we found ourselves in a race for clarity and
understanding.” That evening, the following statement was posted on the company's Twitter
feed: “We’re aware of the incident on Thursday in a Philadelphia store with 2 guests and law
enforcement, resulting in their removal. We’re reviewing the incident with our partners, law
enforcement and customers to determine what took place and led to this unfortunate result.”25
Information was still limited, however, and Friday ended with more questions than answers.
Saturday, April 14
Johnson woke Saturday morning to more than 100 emails from people outside the company
alerting him to the incident and the flurry of negative attention Starbucks had begun to
receive in the press. “I saw the video and was heartbroken,” he said. “I wanted to know how
it had happened. I wanted to know exactly what policies we, the leadership, had in place that
had allowed such a thing to transpire.” Johnson huddled with several members of his
leadership team, including Kelly and Williams as well as Vivek Varma, EVP of Public
Affairs, Roz Brewer, Chief Operating Officer, and Zabrina Jenkins, VP Assistant General
Counsel, to discuss the situation. As criticism grew, and as Johnson and his team found
evidence that the video was indeed an accurate portrayal of the episode, they made several
decisions. First, they decided to travel to Philadelphia the following morning to gain a better
understanding of the situation and respond more effectively.
Hymes, meanwhile, drove up from Washington D.C. immediately. When she arrived, she
found that demonstrators had already begun to organize protests at the store where the
incident occurred. Partners at stores across Philadelphia had become targets of intense anger.
“It was traumatizing for them,” said Hymes. “Bus drivers were kicking them off for wearing
their Starbucks caps. Partners of color were being berated by their family members for their
affiliation with a company they now viewed as racist.”
On Saturday afternoon, Johnson issued the first of what would become a series of public
apologies, this one published on the company’s Twitter feed. “We apologize to the two
individuals and our customers for what took place at our Philadelphia store on Thursday,” it
read, “and are disappointed this led to an arrest. We take these matters seriously and clearly
we have more work to do when it comes to how we handle incidents in our stores. We are
reviewing our policies and will continue to engage with the community and the police
department to try to ensure these types of situations never happen in any of our stores.”26
Sunday, April 15
Inclement weather prevented Johnson and his team from flying to Philadelphia until late in
the day on Sunday. During the delay, on their cross-country flight, and again at the hotel in
Philadelphia, Johnson conferred with his team, and with Schultz, who would join the team in
Philadelphia the next day. Johnson also spoke for the first time with the city’s mayor and
chief of police. The former was calling on Starbucks to review its policies and conduct bias
training. The latter was defending the conduct of the arresting officers, claiming that they
peacefully responded to a trespassing complaint made by the store manager. Johnson also
consulted with Eric Holder, the former U.S. attorney general.
“He told me there would be great pressure to give answers and make statements before I had
all the facts. He advised me that it is okay to let people know that my job was to review
everything about how this incident happened, and then take action to try and fix it.’”
Johnson also issued his second apology, this one via video. In his approximately two-minute
statement, he apologized again to the men who were arrested and stated that “what happened
and the way that incident escalated and the outcome was nothing but reprehensible.” He also
apologized to Starbucks partners and to the Philadelphia community. “This is not who we are,
and who we are going to be,” he said. “We are going to learn from this, and we will be better
for it.” Johnson went on to say that while calls to the police may sometimes be justifiable,
this was not one of those times, as there had been no violent acts, threats, or disruptions. “The
two men did not deserve what happened, and we are accountable,” he said. “I am
accountable.” He pledged to consider changing store policies and adding bias training for
partners. He also expressed a reluctance to take action on the store manager. “I own this,” he
said. “This is a management issue, and I am accountable.” Lastly, he said that in the coming
two days, he would meet with as many people from the Philadelphia community as possible,
including the two men who had been arrested, if they were willing.
Monday, April 16
That morning, Johnson appeared on Good Morning America to issue another apology and
answer questions about how Starbucks would respond to the incident. He repeated that what
had happened was reprehensible and inexcusable, that discrimination and racial profiling
were anathema to the company’s values, and that Starbucks would explore ways to work with
communities and partners to minimize the chances of similar incidents happening again. He
continued to insist that blame and responsibility should fall on himself and on company
leadership, not on store employees.
Meanwhile, Williams and Hymes made their way to the Rittenhouse Square store, where
another protest was scheduled. Williams reflected on her approach and on what transpired:
Asset protection was a goal, and the safety of people was of paramount concern. We made
the decision to welcome protestors into the store. Our responsibility was to listen, not to be
defensive. We wanted to be present and available, and we knew we had to be held
accountable. Philadelphia has a history of organized protestors taking on systemic racism.
Learning about that spurred me to reflect on my life and on my privilege.
Protestors inside and outside the store chanted (e.g. “Starbucks is anti-black!” 27), waved
signs, gave impassioned speeches, and taunted partners behind the counter. At times, the
demonstration seemed to be veering out of control. When tensions were at their highest,
Williams and three partners had to lock themselves in the basement for several hours. Said
Williams: “One of the partners, a young woman, was visibly distraught. ‘I’m usually the one
on the other side, protesting,’ she told me. Later, someone intentionally doused a police
officer with a beverage. Like so many people that day, the officer handled the situation with
grace. There was a lot of brave humanity on display that day.” 
Williams and Hymes also met with the store manager who had placed the 911 call. “She
believed she was doing the right thing, and enforcing the policy that company leadership had
put in place—which said that individuals who don’t make purchases were not customers and
if they refused to leave could be considered trespassers,” said Williams. “When I met her, she
was shaking, she was so scared. The amount of hatred and threats she was subject to all of a
sudden was staggering. Her family, too. She is a brave young lady. Along with learning what
the two gentlemen had endured, meeting with her really hammered home the idea that
decisions people make in offices and boardrooms have tremendous impacts on lives.”
Williams, Hymes, and Johnson also learned that the Rittenhouse Square store had recently
experienced an armed robbery. However, they insisted that the prior incident not be part of
the conversation about the arrest. The two incidents were separate, they agreed. There was no
justification for what had happened on Thursday, and nothing should distract from that
important fact.f 
Later that day, Johnson met face to face with the victims, having already established
communication with their attorney. They had what both parties would later describe as a
productive conversation. In addition to apologizing in person to the two men, Johnson agreed
to enter into a mediation process overseen by a retired federal judge. He also agreed that the
two men should have a voice in discussions regarding how the company could work to
promote a more just environment where such incidents would be less likely to occur. Due to
the confidential nature of the mediation proceedings, the outcomes of those proceedings, as
well as other conversations between the two men and Starbucks, were not made public for
several weeks. In addition to a confidential financial settlement, their agreement included “a
commitment to continued listening and dialogue between the two parties as a means towards
developing specific actions and opportunities.” 28 This included an invitation to participate in
conversations with Eric Holder. Johnson also offered to serve as a mentor to the men as they
attempted to launch careers as businessmen and entrepreneurs, and pledged to provide them
the financial assistance needed to complete their bachelor’s degrees, should they desire to
pursue more education. Said Stewart Cohen, the men’s attorney, “Johnson and the two men
were so impressed with each other, that not only do they have a seat at the table, and this
settlement, they also have the beginning of a relationship.”29, g 
Tuesday, April 17 
By Tuesday, nearly a week after the arrests, the worst of the store protests had passed, and
some of the media attention began to die down. Johnson and his team believed they had
gathered as much information as possible, and had spent meaningful time with those involved
and with stakeholders. They were also prepared to announce the initial steps Starbucks would
take to prevent further incidents. These included a formal guarantee to review the policies
that helped lead to the arrests (such as relying on partner discretion to determine who may or
may not use restrooms) and a commitment by the company to “embark on a journey to
holistically examine all aspects of its operations to understand what more it could do to
address implicit bias and to promote equity and inclusion.” 30 Part of that examination
included a companywide external audit by Holder’s law firm, Covington and Burling, whose
findings Starbucks pledged to make public. Williams and Hymes also vowed to continue
conversations with stakeholders in Philadelphia to better understand the complex issues
facing the city and repair relationships.
The aspect of Starbucks’ response that generated the most buzz was an idea proposed by
Schultz, embraced by leadership team, and announced to the public the Tuesday after the
incident. On May 29, 2019, Starbucks would close all 8,000 of its U.S. stores, as well as its
Seattle headquarters for half of a day. During this time, all 175,000 partners would participate
in a racial-bias education session “geared toward preventing discrimination in our stores,”
and addressing topics such as implicit bias and conscious inclusion.” To craft and implement
the program, Starbucks would consult a number of experts, including Bryan Stevenson,
Founder of the Equal Justice Initiative; Sherrilyn Ifill, President of the NAACP Legal
Defense and Education Fund; Heather McGhee, President of Demos; and Jonathan
Greenblatt, CEO of the Anti-Defamation League. The curriculum would also be made
available to other organizations. “While this is not limited to Starbucks,” Johnson remarked,
“we’re committed to being a part of the solution.”31

May 29, 2018 

Public and media reactions to Starbucks’ decision to close its stores for bias training ran the
gamut. Some praised the move, and viewed the costs involved in pursuing such an audacious
undertaking (e.g. production expenses and lost revenue) as evidence of Starbucks’ sincerity
and strong desire to make a positive impact. Critics, meanwhile, claimed it was laughable for
Starbucks to think it could even begin to solve entrenched problems such as bias and
discrimination, especially in a single three or four hour session and after #RaceTogether had
flopped. They viewed the shutdown nothing more than a public relations gimmick. Then
there were those who just shrugged, believing the shutdown would have minimal impact and
soon be forgotten.
Within the company, the idea of a nationwide store closure for partner training held immense
significance and symbolism. Starbucks had shut down all of its stores once before, in 2008,
shortly after Schultz returned as CEO, to reconnect the then-135,000 partners across 7,100
locations with the “art of espresso.” The three-hour training was a key component of
Schultz’s campaign to reprioritize the customer experience. Many credited the 2008 session
as crucial in the process of turning around the struggling company.
Johnson and Kelly insisted that noise from outside the company had zero impact on the
decision to close the stores. “We chose to shut the stores for the training because it was the
right thing to do, period,” said Johnson. “It was the right thing for our customers and for our
partners and for the communities we serve.” Added Kelly,
Very quickly, there was consensus among company leadership that this was necessary and
right. Of course, there were some people from finance who expressed concerns over how
much the shut-down and training would cost, but they weren’t part of the discussion. People
like Kevin and Rossann recognized that this was so important, that if we couldn’t start to fix
this, then the company’s existence would be called into question, and rightfully.
Noted Williams, “We’ve always been a company dedicated to having the hard conversations,
but we needed to acknowledge that there’s still so much more we have to tackle.”
With only six weeks until the scheduled shutdown, the company mobilized. Under Varma’s
direction, long-time company advisor SYPartners as well as the Perception Institute joined
forces for the month leading up to the store closures to build an anti-bias curriculum and
company roadmap to navigate the journey forward. In the development of this first and
critical step, Varma convened leaders at Starbucks, including Johnson, Brewer and company
Chief Partner Officer, Lucy Helm, as well as members of Starbucks Black Partner Network,
the Global Talent team, and other representatives from across the company with the national
experts offering their expertise. 
According to Varma, Starbucks had “long prided itself on three things – people, coffee and
the Third Place, a place where people feel like they belong.” Philadelphia changed
everything. “This is really about the Third Place, what happened in Philadelphia,” said
Varma. “This is a moment to go back to the core values of the company and galvanize the
entire company in this teaching moment.”32 
Hill and the global talent team were instrumental in the effort. “We’re in the human-
experience business, but we are also operational experts,” said Hill. “We formed a task force
with two to three people from partner resources (HR), two to three ops partners, a tech
partner, our partners from SYand multiple individuals from public affairs, and we went agile
quickly. On top of doing our normal work, we met every day at 8 a.m. to provide updates and
discuss that day’s priorities.” The team also brought in outside consultants, several of whom
had helped Starbucks execute the 2008 store closure. Noted Kelly: “The Starbucks ‘secret-
sauce’ is probably two-thirds coffee culture and one-third operational excellence, meaning
our ability to offer quality and consistency at scale and with high efficiency. Our idea was to
tap into this and make 5/29 an uncommon experience.”
Content 
One of the primary questions facing the team was the focus and content of the training. “One
of the big goals was to give partners a way to learn about the long history of discrimination,
especially against African-Americans in public spaces, and the implications,” said Kelly. “It’s
important that all of us try to understand the black perspective.” Leaders decided the training
should be centered on addressing unconscious bias because, as Kelly said, the Philadelphia
incident “warranted more than allegations of racism.” Added Williams, “Bias is such a
complex topic because we don’t always know or feel that we have it. That was an idea we
wanted to start with: We all have some biases.”
For inspiration, and guidance, Starbucks turned to the work of a number of experts, perhaps
none more than board member Mellody Hobson. Hobson, a renowned businesswoman and
public figure, had a long personal history with bias and discrimination as an African-
American, and was a leader in the fight to improve inclusion and diversity in workplaces and
elsewhere. She gained widespread attention for her 2014 Ted Talk, “Color blind or color
brave?” In it, she advocated for frank discussions about race, even though they tended to be
difficult and emotional. Ultimately, such conversations offered a more productive and
achievable approach than aspiring to be color blind, she argued. 
The Starbucks leadership team also wanted the 5/29 session to be an opportunity for partners
to share, listen to one another, and reflect. “We wanted to encourage openness,” said
Williams. “Engage, question, and seek help were messages we wanted to convey.” 
Delivery and Execution 
Hill and her team faced the daunting challenge of orchestrating the 5/29 session. “The first
two weeks or so was devoted to the content,” said Hill. “Everything after that was execution.
It was immediately clear we wouldn’t be able to recruit, hire, and train 8,000 individuals to
lead these sessions in every store. Nor could we realistically expect all of our partners to
travel or gather in designated hubs.”
Therefore, Starbucks relied on technology. Ultimately, 25,000 Apple iPads were loaded with
a series of videos that explored company and societal history, modeled conversations about
race and bias, and guided partners through prompted discussions and reflections. The videos
featured Johnson, Schultz, Hobson, a number of Starbucks partners, outside experts from the
Perception Institute, and Common, the entertainer and activist. Along with the iPads, The
team produced and distributed tens of thousands of guidebooks, which were divided into
sections and printed as newspapers so that they could be spread out on tables and read by
several individuals at once. The section titles were: “Starbucks: Who we are. Who we aspire
to be”; “The story of race, access, and the spaces we all share”; “Creating a more welcoming
Starbucks”; and “Planning the journey ahead.” Additionally, all partners were given
notebooks that provided additional tips, facts, definitions, and things to think about, and
where partners could record their impressions and reflections. Those notebooks would remain
the property of the partners, and everything they wrote would remain private. (See Exhibit 3
for more on the materials.)
“Two weeks prior to 5/29 we released a video preview of the bias training in order to give
partners an idea of what they could expect and to lessen their anxiety,” said Hill. “For
instance, we notified them that time spent in the training would be paid labor. After that, we
mailed all of the iPads and materials in boxes labeled ‘Do not open until 5/29,’ both because
we wanted that anticipation to build and because we wanted everyone nationwide to go
through the process as concurrently as possible, as a real shared experience.”
In the days leading up to 5/29, stores began posting simple signs on their doors and windows
announcing that they would be closing early that day. (See Exhibit 4.) “We didn’t make the
sessions mandatory for partners,” said Hill. “We didn’t want to force them. This topic is
complex and intense. Also, we realize partners’ schedules are often complex. We don’t,
therefore, have an exact tally of how many partners participated, but we do know that every
store nationwide participated, and that we received endless comments from partners that the
sessions were helpful and inspiring.”

The Journey Continues 

Although much of the press and social media attention died down after 5/29, Johnson and his
team continued to focus on finding ways to improve customer and partner experiences. “The
shutdown was always just one element--a step on the journey,” said Johnson. “We knew
innovation was necessary, but a lot of it was about returning to and reinforcing basics, not
changing everything,” added Zulima Espinel, VP of public policy.
New ‘Use of the Third Place’ Policy 
One of the swiftest changes the company made was to store policies. Following the incident
in Philadelphia and a thorough review, partners were no longer asked to distinguish between
customers and non-customers. According to the new policy (titled “Use of the Third Place”),
“Anyone who enters Starbucks is a customer, regardless of whether they make a purchase,
and all customers may use Starbucks’ restrooms, cafés, and patios.” The new policy also, “set
forth Starbucks’ expectations for customers, which include that all customers: (1) use
Starbucks spaces as intended, (2) be considerate of others, (3) communicate with respect, and
(4) act responsibly.”33 Said Williams: “We still consider certain behaviors inappropriate in our
stores. Said Hymes “It’s about creating a welcoming environment.” We believe that if we
provide that level of customer service and engagement, more people will be inclined to use
our space as it is intended” These new rules were posted throughout store locations. (See
Exhibit 5) 
As part of the rollout, a guide for “Addressing Disruptive Behaviors” was distributed.
Furthermore, partners were coached (via online training to be completed within one month as
paid labor) on how to follow a new response model known as the ACT Model. This approach
called for employees who observe disruptive behavior in their Starbucks store to 1) Assess, 2)
Consider, and 3) Take Action. For additional context, they were issued a reference guide for
addressing disruptive behaviors. The guide reiterated that 911 should be avoided except in
cases of “immediate danger or threat to partner or customer safety.” For other situations,
partners were encouraged to consider calling a non-emergency number or a similar social-
service resource (e.g., homeless shelters, mental health services, substance abuse services).
Partners were also encouraged to come up with creative solutions. For example, one store
manager noticed two individuals in her store acting suspiciously near the food case. She
engaged them in conversation and learned that they were hungry but didn’t have money to
buy food. Rather than asking them to leave, she offered them a warm meal.34 
In addition to creating these new policy guides, Brewer, Williams, Varma, Kelly, Helm, Hill,
and others began revising the many other manuals, codes, guides, and standards that partners
followed. “Previously, our incident training focused too much on identifying people, not
behaviors,” said Hymes. (See Exhibit 6 for more on policies and references.) 
The Third Place Development Series 
In June 2018, Starbucks launched another learning program for its partners, titled “The Third
Place Development Series.” The program was designed to be a “personal development series
for partners” in areas such as “empathy, community, courage, and inclusion.” 35 The themes
for the series included:
1) Mindful Decision Making (with Mel Robbins): Identifies tools and strategies to help
partners make unbiased decisions;
2) Leaning into Discomfort (with LB Hannahs): Provides guidance on how to develop
empathy toward people with different experiences and backgrounds, and highlights the
challenges facing transgender individuals;
3) Courageous Leadership (with Brene Brown):, Rumbling with vulnerability, understanding
how to set boundries with dignity and respect, engage with empathy and lead courageously to
main the third place. 
4) Being a Community Builder (with Cleo Wade): Focuses on the importance of partner self-
care so that they can be effective builders in their communities. 
5) Creating an inclusive environment (with Sinead Burke): Seeing other’s perspectives and
interacting with those that are different than you 
6) Conversations on Mental Health (with Esme Wang): Discussing the importance of having
open conversations about mental health 
7) …plus many more (to date, 11 topics have been explored) 
Each theme was addressed via two different modules. Pour Over Sessions targeted partners at
the Store Manager level and higher, as well as non-retail partners. They consisted of TED
Talk-style presentations from experts and influential figures) followed by moderated
question-and-answer sessions. All Store Managers are also issued discussion guides to use in
their stores. The other module, The Third Place Discussion, was structured as an ongoing
series of group discussions on similar topics as the Pour Over Sessions; all partners could
participate—again, as paid labor. Starbucks plans to release new training content and guides
six times annually, an interval Hill believed would be optimal for partners to consume, digest,
and reflect.
Additional efforts were also underway. The company entered a partnership with Arizona
State University to collaborate on a more extensive curriculum regarding biases and their
impact on society. This curriculm is called “#tobewelcoming” and is available publicly via
Starbucks Global Academy.
Mending Relations in Philadelphia 
After spending several days in Philadelphia, Johnson, Kelly, and others returned to Seattle,
while Williams and Hymes stayed behind. In the following weeks, they spent more time
meeting with various groups affected by the incident. One objective was to continue learning.
For example, conversations with several Opportunity Youth partners revealed that, despite
finding employment with Starbucks, many of these individuals continued to suffer from
housing insecurity. “It was eye opening, learning as we did in those weeks the extent of the
systemic issues,” said Williams. “We have more work to do to figure out how we can do
better.”
One of the relationships most imperiled by the incident in Rittenhouse Square was with the
Philadelphia Police Department. In the wake of the incident, the chief of police blamed
Starbucks and defended his officers. Yet after repeated conversations between the company
and the police department, the city implemented new policies that gave officers greater
discretion and more options for defusing situations. Starbucks partners, including Williams
and Hymes, also appeared at a number of public events (including Coffee With a Cop
sessions) alongside police officers and members of other organizations. “We feel we were
successful at creating a united front committed to working together, being better, and
building trust,” said Williams. “A year ago, they were blasting us on CNN. Now we feel like
a lot of them are our buddies, and we are highly responsive to each other.”
Communication and Messaging 
While company leadership and partners remained busy planning, implementing, and
participating in increased efforts to fulfill Starbucks’ Third Place pledge, the general public
heard little in the months following the shutdown. “Our priority has been on the work, not on
the messaging,” said Espinel.
Internally, in addition to the events and trainings, we issue regular updates and hold regular
forums. Our hope and belief is that the work we are doing will be felt by our customers in the
form of improved experiences in our stores. Yet we are committed to transparency. A lot of
what we are doing, even though we are not advertising it, can be viewed by the public on our
website. You can also go online and read the entire Covington Report by Eric Holder and his
associates, which we promised to make available long before we knew what it might contain.
Added Kelly, “We wanted to wait until we had something significant before we shared. We
didn’t want anything to come off as marketing. Authenticity can be stories, but it can also be
metrics. A lot of the information we’re interested in is hard to collect, and takes a long time.”
Starbucks’ commitment to transparency extended to other organizations and corporations.
“Several companies have come to us and asked for our playbook,” said Jenkins.
We were happy to share, because these are society issues that affect us all. We have also been
engaging in open and productive dialogue with other institutions that serve as Third Places.
In particular, we have had conversations with public libraries that offer many of the same
amenities that we do and that have recently had to deal with surges in incidents. Our best
hope is to learn from each other. 
Licensed Stores and International Efforts 
In the year after the Philadelphia incident, Starbucks was primarily concerned with
addressing operations at its company-owned stores in the United States. “We have not done
formal trainings at our 7,000 licensed stores because the workers at those locations are
employees of other companies, not Starbucks partners,” said Jenkins. “But they were invited
to participate in the 5/29 sessions, and we have made many of the resources available to those
other organizations and employees because they are wearing the Starbucks green apron and
are likely facing similar challenges.” Added Espinel, “We also haven’t done a ton overseas
yet. Some of the materials we have developed are being used in Canada, because the markets
are so similar, but for the most part, we want to figure out the U.S. first.”
Measuring Success
By early 2019, Starbucks’ new customer policies had been in place for around six months.
While many lauded the company, others wondered if the “open door policy” would backfire.
Some concerns centered on guests abusing the policy to take advantage of free work space
and wireless Internet, and suspicions that paying customers would find it increasingly
difficult to find seating. Some partners worried that their jobs would become more unpleasant
and hazardous. In one widely reported incident, a woman gave birth in a Starbucks
restroom.36 Media outlets also reported increased complaints from Starbucks partners about
having to dispose of needles, drugs, and other paraphernalia when cleaning the stores. “Since
the new rule stemming from the April 2018 incident went into place,” said one, “the number
of needles in our trash can and on our floors has increased. Fortunately, no one at my location
has been harmed in the years I’ve been there, but as the months pass since we became
nationwide public facilities, the bathroom conditions have been getting worse and worse.”37
Starbucks responded in January 2019 with an announcement that some locations would
receive needle disposal boxes. Again, some have praised the decision, while others fear that it
only provides more sanction for behavior most guests and employees wish to avoid. 
Metrics 
As their ambitious changes got underway, Johnson and his team began considering ways they
could quantify their impact. “We found that in the wake of the Philadelphia incident, partners
were confused and sometimes scared,” said Williams. “For example, partners were terrified
to call the police, even when it seemed clear the situation warranted, because they had seen
what blowback could look like.” Said Kelly,
We also learned that the incident reporting process we had in place was discouraging partners
from filing. This leads to an incomplete picture of what’s going on in our stores. We,
therefore, at the suggestion of Holder and his team, have begun to develop an alternative
option. Previously, filing a report on the phone took twelve minutes. This new tool should
bring that time down to two minutes. 
“On the customer side, we have two main measures: occasions per day (year to year) and
customer connection score,” said Williams, who had increased the amount of time she spent
in the field at Starbucks stores from 50% to over 70%. “Both of those have risen in the past
year. One of the most encouraging results, in fact, has been that the Mid-Atlantic region,
which took a hit immediately following the Philadelphia incident, has experienced some of
the highest increases in those scores. That suggests the work we are doing is having a real
impact.”
Partner Satisfaction 
Through it all, Johnson and his team insisted that the most important part of their jobs was to
ensure partners felt supported and empowered. “We conduct regular Partner Engagement
surveys,” said Williams. “Responses are generally highly positive--as indicated by the fact
that we are regularly touted as a great place to work and we have strong retention. But there’s
still room to grow. For example, we’ve heard from our partners that they want to have even
more conversations about race.” Added Helm.
We have begun the search for a VP of Inclusion and Diversity. We’ve always been proactive
and a leader in this realm, but our efforts have always been rather dispersed. Having a single
person, who will likely report to me, in charge of these areas, will be beneficial. Partners will
know who to look to, and this new person will be responsible for being accessible and
improving communications about these topics.
Looking Ahead 
When Johnson arrived at the SSC to begin his workday, he got himself another cup of coffee
from one of the on-site cafes, which looked like typical Starbucks stores and operated as
innovation labs for new products and processes. He continued to reflect on the company and
its mission. “It is not enough to understand the Starbucks Mission intellectually,” he said.
“You also have to understand and connect to it emotionally. The only way that can happen is
through shared experience. That’s what Howard understood so well and was able to tap into.
My job now is to get up every morning and work in service of each and partner who proudly
wears the green apron for Starbucks around the world. The question that is always at the top
of my mind is, ‘What will make our partners proud?’”

Exhibit 1a Starbucks Executive Leadership Team Bios 

Kevin Johnson, President and CEO joined Starbucks in 2009, serving on the company’s
board of directors during a period of record-setting transformation and growth. In March
2015, Kevin took on the role of President and Chief Operating Officer, leading the
company’s global operating businesses across all geographies, as well as the core support
functions of Starbucks supply chain, marketing, human resources, technology and mobile and
digital platforms. He assumed the role of President and CEO in April 2017, as Howard
Schultz transitioned into the role of executive chairman. 
His career spans more than 30 years, scaling global businesses, including 16 years at
Microsoft and five years as CEO of Juniper Networks. In 2008, he was appointed to the
National Security Telecommunication Advisory Committee where he served presidents
George W. Bush and Barack Obama. He was a founding board member of NPower, an
organization that provides nonprofits with access to technology and the skills needed to fulfill
their social missions. He is involved with Catalyst, a leading nonprofit focused on expanding
opportunities for women in business. Kevin also supports Youth Eastside Services, one of the
largest providers of youth and family counseling in the Seattle area. He graduated from New
Mexico State University with a bachelor’s degree in Business Administration. 
Zulima Espinel, VP Global Public Policy first joined Starbucks as Policy Counsel in 2015.
Previously she served as Associate White House Council under President Barack Obama and
as Senior Counsel for National Security.
Zabrina Jenkins, VP Assistant General Counsel of Global Litigation and Employment
joined Starbucks in 2005 after several years with a Seattle law firm. She earned M.S. and J.D.
degrees from Syracuse University, and a B.A. from Central Washington University.
John Kelly, Executive VP of Social Affairs and Social Impact came to Starbucks in 2013.
Previously he worked at Microsoft, where he led global policy, regulatory, citizenship and
political initiatives over 15 years. He worked in Europe as the leader of Corporate Affairs for
Europe, Middle East and Africa, driving Microsoft’s public policy and corporate
responsibility strategies for that region. Prior to joining Microsoft, John worked for nearly a
decade in Washington, D.C. in a variety of legal and public policy roles in government. John
graduated from Stanford University with a B.A. in political science in 1988. He earned his
law degree from the Washington College of Law in 1993 and is a member of the Washington
State Bar. John sits on the boards at Points of Light Foundation and the Starbucks
Foundation. 
Lucy Helm, Executive VP, Chief Partner Officer became a Starbucks partner in 1999, and
previously served as Starbucks executive vice president, general counsel and secretary for
more than five years, and served as the interim leader of the Partner Resources organization
(PRO) from March to July 2017. Prior to joining Starbucks, Lucy was a principal at Riddell
Williams P.S. in Seattle, where she was a trial lawyer. She was also an assistant director and
advocacy director at the Center for Accessible Living in Louisville, Kentucky. Lucy received
her B.A. in political science with highest honors from the University of Louisville and is a
cum laude graduate of the Brandeis School of Law at the University of Louisville. 
Molly Hill, VP Global Talent joined Starbucks in May 2015 as Director of Retail Learning,
before serving as VP of Retail Learning and Development. Prior to that, she led employee
experience and development teams at Microsoft, Washington Mutual, Starwood Hotels &
Resorts, and Disneyland. She graduated from the University of Washington with a bachelors
in communications.
Camille Hymes, VP Operations assumed her current position heading operations in the Mid
Atlantic region in 2014. Previously, she held VP roles at Jack-in-the-Box and for more than a
decade was an operations manager at ExxonMobil. She graduated from Howard University,
where she majored in marketing.
Rossann Williams, Executive VP and President U.S. Retail was previously the senior vice
president and president, Starbucks Canada. Prior to assuming leadership of Starbucks
Canada, she led the Global Talent function in the Partner Resources (human resources)
Organization from 2013-2014. Rossann held several key Operations leadership roles prior to
joining Partner Resources. As interim senior vice president, Global and Americas Operations
in 2012 she led global support to Retail Operations Leadership. This included developing the
annual operating plan and ensuring execution of the company’s strategic direction. She
served as divisional senior vice president for the Sunbelt Division from 2010-2012 leading
4,200 stores and 43,000 partners in six regions across the southern half of the continental
United States and Hawaii. Prior to that, Williams spent three years based in Amsterdam as
vice president of Operations, for Starbucks Europe, Middle East and Africa (EMEA) where
she helped build the Starbucks business and ensure operations excellence in more than 28
international markets. Williams began her career with Starbucks in 2004 as regional vice
president in the U.S. Central Zone. 
Source: Company website and LinkedIn.

Exhibit 1e Starbucks Company Timeline to 2015 (Partial) 

1971: Starbucks opens first store in Seattle’s Pike Place Market. 

1982: Howard Schultz joins Starbucks as director of retail operations and marketing.
Starbucks begins providing coffee to fine restaurants and espresso bars. 
1983: Schultz travels to Italy, where he’s impressed with the popularity of espresso bars in
Milan. He sees the potential to develop a similar coffeehouse culture in Seattle. 
1984: Schultz convinces the founders of Starbucks to test the coffeehouse concept in
downtown Seattle, where the first Starbucks Caffè Latte is served. This successful experiment
is the genesis for a company that Schultz founds in 1985: Schultz founds Il Giornale, offering
brewed coffee and espresso beverages made from Starbucks® coffee beans. 
1987: Il Giornale acquires Starbucks assets with the backing of local investors and changes
its name to Starbucks Corporation. Opens in Chicago and Vancouver, Canada. Total Stores*:
17 
1988: Offers full health benefits to eligible full- and part-time employees, including coverage
for domestic partnerships. Total Stores: 33 
1989: Total Stores: 55 
1990: Starbucks expands headquarters in Seattle. Unveils Starbucks Mission Statement. Total
Stores: 84 
1991: Becomes the first privately owned U.S. company to offer a stock option program that
includes part time employees. Total Stores: 116 
1992: Completes initial public offering (IPO). Total Stores: 165 
1993: Opens roasting plant in Kent, Wash. Announces first two-for-one stock split. Total
Stores: 272 1994: Opens first drive-thru location. Total Stores: 425 
1995: Begins serving Frappuccino® blended beverages. Opens first LEED-certified store in
Hillsboro, Oregon. Announces second two-for-one stock split. Opens roasting facility in
York, Pa. Total Stores: 677 
1996: Opens stores in: Japan (first store outside of North America) and Singapore. Total
Stores: 1,015 1997: Establishes the Starbucks Foundation. Opens stores in: the Philippines.
Total Stores: 1,412 
1998: Extends the Starbucks brand into grocery channels across the U.S. Opens in
underserved neighborhoods through joint-venture partnership with Magic Johnson. Launches
Starbucks.com. Establishes the CUP Fund emergency financial assistance fund for partners.
Opens stores in: England, Malaysia, New Zealand, Taiwan and Thailand. Total Stores: 1,886 
1999: Acquires Tazo Tea. Partners with Conservation International to promote sustainable
coffee-growing practices. Opens stores in: China, Kuwait, Lebanon and South Korea. Total
Stores: 2,498 
2000: Establishes licensing agreement with TransFair USA to sell Fairtrade certified coffee in
U.S. and Canada. Opens stores in: Australia, Bahrain, Hong Kong, Qatar, Saudi Arabia and
United Arab Emirates. Total Stores: 3,501 
2001: Introduces ethical coffee-sourcing guidelines developed in partnership with
Conservation International. Introduces the Starbucks Card. Opens stores in: Austria,
Scotland, Switzerland and Wales. Total Stores: 4,709 
2002: Establishes Starbucks Coffee Trading Company (SCTC) in Lausanne, Switzerland.
Launches Wi-Fi in stores. Opens stores in: Germany, Greece, Indonesia, Mexico, Oman,
Puerto Rico and Spain. Total Stores: 5,886 
2003: Opens stores in: Chile, Cyprus, Peru and Turkey. Total Stores: 7,225 
2004: Opens first Farmer Support Center in San Jose, Costa Rica. Introduces Starbucks
Coffee Master Program. Opens stores in: France and Northern Ireland. Total Stores: 8,569 
2005: Acquires Ethos Water. Opens stores in: Bahamas, Ireland and Jordan. Total Stores:
10,241 
2006: Launches the industry’s first paper beverage cup containing post-consumer recycled
fiber. Opens stores in: Brazil and Egypt. Total Stores: 12,440 
2007: Eliminates all artificial trans-fat and makes 2 percent milk the new standard for
espresso beverages. Opens stores in: Denmark, the Netherlands, Romania and Russia. Total
Stores: 15,011 
2008: Chairman Howard Schultz returns as chief executive officer and begins transformation
of the company. Adopts new Mission Statement “To inspire and nurture the human spirit –
one person, one cup and one neighborhood at a time.” Launches My Starbucks Idea,
Starbucks first online community. Also joins Twitter and debuts Starbucks Facebook page.
Opens stores in: Argentina, Belgium, Bulgaria, Czech Republic and Portugal. Total Stores:
16,680 
2009: Launches Starbucks VIA® Instant Opens Farmer Support Center in Kigali, Rwanda.
Launches My Starbucks Rewards® loyalty program and Starbucks Card mobile payment.
Opens stores in: Aruba and Poland. Total Stores: 16,635 
2010: Expands digital offerings for customers with free unlimited Wi-Fi. Opens stores in: El
Salvador, Hungary and Sweden. Total Stores: 16,858 
2011: Launches first annual Global Month of Service to celebrate company’s 40th
anniversary. Opens first Community Stores in Harlem and Crenshaw neighborhoods
Acquires Evolution Fresh. Opens Farmer Support Center in Mbeya, Tanzania. Launches
Create Jobs for USA to encourage small-business growth. Opens stores in: Guatemala,
Curacao and Morocco. Total Stores: 17,003 
2012: Opens Farmer Support Centers in Manizales, Colombia and Yunnan, China. Acquires
La Boulange® bakery brand to elevate core food offerings. Acquires Teavana. Opens stores
in: Costa Rica, Finland, India and Norway. Total Stores: 18,066 
2013: Strengthens ethical sourcing efforts with coffee farming research and development
center in Costa Rica. Starbucks CEO Howard Schultz reinforces company’s commitment to
marriage equality at company’s Annual Shareholders Meeting. Come Together petition urges
U.S. elected leaders to reopen the government. Opens stores in: Vietnam and Monaco. Total
Stores: 19,767 
2014: Launches Starbucks College Achievement Plan with Arizona State University to offer
qualifying Starbucks U.S. partners the opportunity to complete a college degree through
ASU’s online degree program. Announces commitment to hiring 10,000 veterans and
military spouses by 2018. Launches Starbucks Mobile Order & Pay. Hosts first in a series of
Partner Open Forums to discuss race relations in America. Opens stores in: Brunei and
Colombia. Total Stores: 21,366 
2015: Launches Cold Brew iced coffee and Evolution Fresh™ handcrafted smoothies.
Announces sixth two for-one stock split. Commits to hiring 10,000 opportunity youth by
2018. Expands Starbucks College Achievement Plan to offer full tuition coverage for all four
years of an undergraduate degree for qualifying U.S. Starbucks partners. Commits to 25,000
partners graduating by 2025. Reaches 99% ethically sourced coffee milestone. Opens stores
in: Panama Total Stores: 22,519 (as of June 28, 2015) 
Source: Company website.
*All store counts (except where otherwise noted) reflect the end of the fiscal year. Current
store count includes Starbucks Coffee, Seattle’s Best Coffee, Teavana and Evolution Fresh
retail.

Exhibit 1e Starbucks Company, Timeline hingga 2015 (Parsial)

1971: Starbucks membuka toko pertama di Seattle’s Pike Place Market.
1982: Howard Schultz bergabung dengan Starbucks sebagai direktur operasi ritel dan
pemasaran. Starbucks mulai menyediakan kopi ke restoran mewah dan bar espresso.
1983: Schultz melakukan perjalanan ke Italia, di mana dia terkesan dengan popularitas bar
espresso di Milan. Ia melihat potensi untuk mengembangkan budaya kedai kopi serupa di
Seattle.
1984: Schultz meyakinkan para pendiri Starbucks untuk menguji konsep kedai kopi di pusat
kota Seattle, tempat Starbucks Caffè Latte pertama disajikan. Eksperimen yang berhasil ini
adalah asal mula perusahaan yang didirikan Schultz pada tahun 1985: Schultz mendirikan Il
Giornale, menawarkan kopi yang diseduh dan minuman espresso yang dibuat dari biji kopi
Starbucks®.
1987: Il Giornale mengakuisisi aset Starbucks dengan dukungan investor lokal dan mengubah
namanya menjadi Starbucks Corporation. Buka di Chicago dan Vancouver, Kanada. Jumlah
Toko *: 17
1988: Menawarkan tunjangan kesehatan penuh kepada karyawan penuh dan paruh waktu
yang memenuhi syarat, termasuk perlindungan untuk kemitraan domestik. Jumlah Toko: 33
1989: Jumlah Toko: 55
1990: Starbucks memperluas kantor pusat di Seattle. Mengungkap Pernyataan Misi
Starbucks. Jumlah Toko: 84
1991: Menjadi perusahaan AS milik pribadi pertama yang menawarkan program opsi saham
yang mencakup karyawan paruh waktu. Jumlah Toko: 116
1992: Menyelesaikan penawaran umum perdana (IPO). Jumlah Toko: 165
1993: Membuka pabrik pemanggangan di Kent, Wash. Mengumumkan pemecahan saham
dua-untuk-satu yang pertama. Jumlah Toko: 272
1994: Membuka lokasi drive-thru pertama. Jumlah Toko: 425
1995: Mulai menyajikan minuman campuran Frappuccino®. Membuka toko bersertifikat
LEED pertama di Hillsboro, Oregon. Mengumumkan pemecahan saham dua-untuk-satu
kedua. Membuka fasilitas pemanggangan di York, Pa Total Stores: 677
1996: Membuka toko di: Jepang (toko pertama di luar Amerika Utara) dan Singapura. Jumlah
Toko: 1.015
1997: Mendirikan Starbucks Foundation. Membuka toko di: Filipina. Jumlah Toko: 1.412
1998: Memperluas merek Starbucks ke saluran grosir di seluruh AS. Buka di lingkungan
yang kurang terlayani melalui kemitraan usaha bersama dengan Magic Johnson.
Meluncurkan Starbucks.com. Membentuk dana bantuan keuangan darurat CUP Fund untuk
mitra. Membuka toko di: Inggris, Malaysia, Selandia Baru, Taiwan dan Thailand. Jumlah
Toko: 1.886
1999: Mengakuisisi Teh Tazo. Bermitra dengan Conservation International untuk
mempromosikan praktik penanaman kopi yang berkelanjutan. Membuka toko di: Cina,
Kuwait, Lebanon, dan Korea Selatan. Jumlah Toko: 2.498
2000: Menetapkan perjanjian lisensi dengan TransFair USA untuk menjual kopi bersertifikasi
Fairtrade di AS dan Kanada. Membuka toko di: Australia, Bahrain, Hong Kong, Qatar, Arab
Saudi dan Uni Emirat Arab. Jumlah Toko: 3.501
2001: Memperkenalkan pedoman sumber kopi etis yang dikembangkan dalam kemitraan
dengan Conservation International. Memperkenalkan Kartu Starbucks. Membuka toko di:
Austria, Skotlandia, Swiss, dan Wales. Jumlah Toko: 4.709
2002: Mendirikan Starbucks Coffee Trading Company (SCTC) di Lausanne, Swiss.
Meluncurkan Wi-Fi di toko-toko. Membuka toko di: Jerman, Yunani, Indonesia, Meksiko,
Oman, Puerto Rico, dan Spanyol. Jumlah Toko: 5.886
2003: Membuka toko di: Chili, Siprus, Peru, dan Turki. Jumlah Toko: 7.225
2004: Membuka Pusat Dukungan Petani pertama di San Jose, Kosta Rika. Memperkenalkan
Program Magister Kopi Starbucks. Membuka toko di: Prancis dan Irlandia Utara. Jumlah
Toko: 8.569
2005: Mengakuisisi Ethos Water. Membuka toko di: Bahama, Irlandia, dan Yordania. Jumlah
Toko: 10.241
2006: Meluncurkan gelas minuman kertas pertama di industri yang mengandung serat daur
ulang pasca-konsumen. Membuka toko di: Brasil dan Mesir. Jumlah Toko: 12.440
2007: Menghilangkan semua lemak trans buatan dan menjadikan 2 persen susu sebagai
standar baru untuk minuman espresso. Membuka toko di: Denmark, Belanda, Rumania, dan
Rusia. Jumlah Toko: 15.011
2008: Pimpinan Howard Schultz kembali sebagai CEO dan memulai transformasi
perusahaan. Mengadopsi Pernyataan Misi baru “Untuk menginspirasi dan memelihara jiwa
manusia - satu orang, satu cangkir dan satu lingkungan pada satu waktu.” Meluncurkan Ide
Starbucks Saya, komunitas online pertama Starbucks. Juga bergabung dengan Twitter dan
memulai debut halaman Facebook Starbucks. Membuka toko di: Argentina, Belgia, Bulgaria,
Republik Ceko dan Portugal. Jumlah Toko: 16.680
2009: Meluncurkan Starbucks VIA® Instant Membuka Pusat Dukungan Petani di Kigali,
Rwanda. Meluncurkan program loyalitas My Starbucks Rewards® dan pembayaran seluler
Starbucks Card. Membuka toko di: Aruba dan Polandia. Jumlah Toko: 16.635
2010: Memperluas penawaran digital untuk pelanggan dengan Wi-Fi gratis tanpa batas.
Membuka toko di: El Salvador, Hongaria dan Swedia. Jumlah Toko: 16.858
2011: Meluncurkan Bulan Layanan Global tahunan pertama untuk merayakan ulang tahun
ke-40 perusahaan. Membuka Toko Komunitas pertama di lingkungan Harlem dan Crenshaw.
Akuisisi Evolution Fresh. Membuka Pusat Dukungan Petani di Mbeya, Tanzania.
Meluncurkan Ciptakan Lapangan Kerja untuk AS untuk mendorong pertumbuhan bisnis
kecil. Membuka toko di: Guatemala, Curacao, dan Maroko. Jumlah Toko: 17.003
2012: Membuka Pusat Dukungan Petani di Manizales, Kolombia dan Yunnan, Cina.
Mengakuisisi merek roti La Boulange® untuk meningkatkan penawaran makanan inti.
Mengakuisisi Teavana. Membuka toko di: Kosta Rika, Finlandia, India, dan Norwegia.
Jumlah Toko: 18.066
2013: Memperkuat upaya sumber etis dengan pusat penelitian dan pengembangan pertanian
kopi di Kosta Rika. CEO Starbucks Howard Schultz memperkuat komitmen perusahaan
terhadap kesetaraan pernikahan di Rapat Pemegang Saham Tahunan perusahaan. Petisi Come
Together mendesak para pemimpin terpilih AS untuk membuka kembali pemerintahan.
Membuka toko di: Vietnam dan Monaco. Jumlah Toko: 19.767
2014: Meluncurkan Starbucks College Achievement Plan dengan Arizona State University
untuk menawarkan kesempatan kepada mitra Starbucks AS yang memenuhi syarat untuk
menyelesaikan gelar sarjana melalui program gelar online ASU. Mengumumkan komitmen
untuk mempekerjakan 10.000 veteran dan pasangan militer pada tahun 2018. Meluncurkan
Starbucks Mobile Order & Pay. Menjadi tuan rumah pertama dalam rangkaian Forum
Terbuka Mitra untuk membahas hubungan ras di Amerika. Membuka toko di: Brunei dan
Kolombia. Jumlah Toko: 21.366
2015: Meluncurkan es kopi Cold Brew dan smoothie buatan tangan Evolution Fresh ™.
Mengumumkan pemecahan saham dua-untuk-satu keenam. Berkomitmen untuk
mempekerjakan 10.000 pemuda peluang pada tahun 2018. Memperluas Rencana Prestasi
Starbucks College untuk menawarkan cakupan biaya kuliah penuh selama empat tahun gelar
sarjana untuk mitra Starbucks AS yang memenuhi syarat. Berkomitmen untuk 25.000 mitra
yang lulus pada tahun 2025. Mencapai 99% tonggak sejarah kopi yang bersumber secara etis.
Membuka toko di: Panama Total Stores: 22.519 (per 28 Juni 2015)