Amid rumor-fueled protests in London and Beirut, Starbucks celebrates a bright spot in an otherwise bleak overseas market

Starbucks is having a strange week. This week’s international headlines have shown outright violence against the brand in London and Beirut and a cause for celebration in China.

One franchise store in Beirut was forced to close this week after approximately 100 people gathered at the storefront to shout anti-Israeli protests and causing would-be customers to leave. The protesters told Associated Press reporters they were boycotting Starbucks because of allegations that CEO Howard Schultz donates to the Israeli military.

The protesters hung banners across the shop’s window and created a Star of David out of white tape to paste over the Starbucks logo. They passed out flyers stating that Schultz is “one of the pillars of the American Jewish lobby”.

In response, Starbucks’ suggested news agencies refer to a statement regarding rumors about the company on their website.

“Rumors that Starbucks Coffee Company and its management support Israel are unequivocally false,” the statement reads. “Starbucks is a nonpolitical organization and does not support political causes. Further, political preferences of a Starbucks partner at any level have absolutely no bearing on Starbucks company policies.”

Sadly, these protests weren’t seen in Lebanon alone. Earlier in the week, a store in London’s Kensington High Street was also the scene of pro-Palestinian vandalism. Protesters there wore masks as they smashed windows and ripped out equipment and fittings before clashing with riot police. Other stores on the street were also attacked, but the demonstrators choose to take out most of their frustration on the coffee shop.

China continues to embrace the brand

On the bright side of international business, Starbucks reported highly successful numbers in China this week as it celebrates its 10th anniversary in the country. With more than 350 stores, the Chinese are showing a preference for the brand and sales are strong. 

“We have not seen a drop-off at all in the demand for Starbucks in China,” Martin Coles, president of Starbucks Coffee International, told Reuters. “We have seen an acceleration in our (China) business.”

In honor of Starbucks’ decade in China, a limited-edition blend featuring Chinese coffee will be available until mid February. The Seattle-based chain will also sign cooperation agreements with local governing bodies in the south Yunnan province to help coffee farmers working there increase sustainability.

The company also plans to open an additional 350 stores in China over the next few years.

Elsewhere in the world, the brand has shown mixed reviews. The chain has closed all but a few of its stores in Australia and saw sagging sales in Canada and the United Kingdom. With more than 5,000 stores outside of the US, the company began scaling back international efforts late last year when fourth quarter profits dropped.

No Comments »