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A week ago, Starbucks\u2019 <\/span>new CEO, Brian Niccol<\/span>, was described as the \u201cmessiah<\/a>\u201d that the ailing coffee giant<\/span><\/span> was looking for. <\/span><\/p>\n The mere announcement that the former CEO of Chipotle had a new job drove Starbucks\u2019 stock up 25%\u2013 the greatest surge in value in the company\u2019s history.<\/p>\n Niccol, who has a track record of success<\/a> in turning around companies that have hit a rough patch, including Taco Bell and, most recently, Chipotle<\/a>, is due to start at Starbucks on September 9.<\/p>\n So far, so good.<\/p>\n But in the last few days the good news has been overshadowed by a public backlash over perks in his contract that allow him to work remotely from his home in Newport Beach, California, and commute to the company\u2019s HQ in Seattle via private jet.<\/p>\n In Starbucks\u2019 offer letter<\/a> to Niccol, the company said: \u201cDuring your employment with the company, you will not be required to relocate to the company\u2019s headquarters \u2026 You agree to commute from your residence to the company\u2019s headquarters (and engage in other business travel) as is required to perform your duties and responsibilities.\u201d<\/p>\n The document also states that he will be eligible to use the company\u2019s aircraft for \u201cbusiness related travel\u201d and for \u201ctravel between [his] city of residence and the company\u2019s headquarters\u201d.<\/p>\n A Starbucks spokesperson clarified to CNBC<\/em><\/a> that its new chief will still be expected to work from Starbucks\u2019 Seattle office at least three days a week in line with the company\u2019s hybrid work policies.<\/a>\u00a0<\/p>\n Yet, instead of extinguishing the fire, the announcements only stoked the flames. By Thursday, The New York Times weighed in with a sarcastic headline<\/a>. The BBC even produced a map of his commute<\/a>. <\/p>\n Niccol\u2019s commute had taken on a media life of its own.<\/p>\n Some consumers have (wrongly) drawn the conclusion that Niccol isn\u2019t required to relocate to Seattle, and will therefore be using the company jet on a daily basis to get to work.<\/p>\n Although the company denied to the BBC<\/a><\/em> that Niccol will be expected to fly back and forth over 1,000 miles each day, the public has gone into overdrive, blasting his \u201chypocritical\u201d commute given the company\u2019s recent sustainability commitments, including a ban on plastic straws. According to<\/a> a 2021 report by the European Federation for Transport and Environment, private jets are up to 14 times more polluting, per passenger, than commercial planes and 50 times more polluting than trains.<\/p>\n \u201cStarbucks CEO has decided to travel on a private jet for work instead of relocating. Meanwhile, we are supposed to save the environment and have our coffee with a paper straw that gets soggy in minutes,\u201d one social media user wrote<\/a> on X, the platform formerly known as Twitter<\/a>.\u00a0<\/p>\n One user joked<\/a>: \u201cLooks like we\u2019ll have to use a lot more of reusable cups and paper straws to \u2018offset\u2019 the new Starbucks CEO\u2019s humongous carbon footprint.\u201d<\/p>\n \u201cWhat a bunch of performative hypocrites with their enviro friendly branding. No company who truly cares about the climate would agree to this,\u201d chimed another<\/a>.\u00a0<\/p>\n \u201cIf this man is commuting regularly on a private jet, do not let\u00a0@Starbucks convince you they are environmentally conscious,\u201d another wrote<\/a>. \u201cThey get on us commoners about our cars but things like private jets and yachts do way more damage to the environment per unit.\u201d<\/p>\n Starbucks declined to comment on accusations that it is being hypocritical by pushing its customers to use paper straws, all the while its CEO has access to the company jet. <\/p>\n \u201cNiccol has proven himself to be one of the most effective leaders in our industry, generating significant financial returns over many years,\u201d a spokesperson for the company told Fortune<\/em>.\u00a0\u201cWe\u2019re confident in his experience and ability to serve as the leader of our global business and brand, delivering long-term, enduring value for our partners, customers and shareholders.\u201d<\/p>\n Ben Alalouff, chief strategy officer at the marketing agency Live & Breathe, thinks that while the public backlash will blow in a matter of days, Starbucks\u2019 workers won\u2019t forget the news so quickly.<\/p>\n \u201cIf I was a Starbucks employee at corporate and I heard that a huge amount of costs every month is being used [to fuel a private jet] rather than investing into the workforce or investing into benefits or bonuses or whatever it may be, I\u2019d be pretty pissed off,\u201d he told Fortune.<\/p>\n As well as the anger directed at Starbucks from environmentally conscious consumers, others on social media have been quick to highlight the inconsistency with Starbucks\u2019 decision to require office workers to return to the office at least three days a week.<\/p>\n Unlike Niccol, those who live far from the office (on a fraction of their boss\u2019 salary) will have had to choose between relocating to meet the company\u2019s in-office requirements<\/a> or\u00a0finding alternative work.<\/a><\/span><\/p>\n In the long run, however, Alalouff thinks the Starbucks brand will be fine.<\/p>\n \u201cI think it is too large of a brand and it\u2019s too much of a small issue in the plethora of things that are wrong with the world,\u201d Alalouff tells Fortune<\/em>. \u201cNo one\u2019s going to change their coffee habits long-term based on the fact that the CEO is on a jet three days a week.\u201d<\/p>\n \u201cIt\u2019ll be this week\u2019s interesting, ridiculous behaviour by an executive \u2026 But I think the worry would be internally,\u201d he adds.<\/p>\n \u201cI totally understand stretching and accommodating talent that\u2019s going to be transformative to your business. But I think this one probably goes a tad too far.\u201d<\/p>\n Niccol\u2019s arrangements are pretty common. As few as 7% of CEOs are back in the office full-time<\/a> (despite a quarter of them believing that a return to the office full-time is a priority).\u00a0<\/p>\n Unsurprisingly, the double standard isn\u2019t going unnoticed by employees who are often responding to rigid RTO mandates with resignation<\/a> letters\u2014or sticking around but putting in minimal effort<\/a> and finding ways to flout the rules.<\/p>\n In his eyes, Starbucks will have to spend the next 6 months making the company \u201clook rosy\u201d to get buy-in from both its employees and customers.<\/p>\n \u201cThe longer this new CEO goes without making a huge impact that\u2019s noticeable internally as well as externally, the worse this decision will look,\u201d Alalouff concludes.<\/p>\n<\/div>\n\n\u2018What a bunch of performative hypocrites\u2019<\/h2>\n
The public will forget Starbucks\u2019 hypocrisy\u2014its workers won\u2019t<\/h2>\n
It\u2019s probably a 9-day wonder<\/h2>\n