Starbucks opens first sign language store in US

WASHINGTON - Rebecca Witzofsky, a 20-year-old deaf student at Gallaudet University in Washington, and her hearing friend Nikolas Carapellatti wanted to get a coffee. 

But on Tuesday, Witzofsky finally didn't have to struggle to make her order understood.

US coffee giant Starbucks opened its first "signing store" in the United States in northeast Washington near the campus of Gallaudet, the world's only university with an entire curriculum designed to accommodate the deaf and hard-of-hearing.

At the store, all staff -- most of them deaf or hard-of-hearing themselves -- are required to communicate with customers using sign language. 

The cafe is modeled after a store that opened in Kuala Lumpur, Malaysia in 2016.

At first glance, it doesn't look any different from a regular Starbucks, seen on seemingly every other street corner in the US capital.

Employees wearing black shirts and green aprons emblazoned with the company logo scurry behind the counter to serve hot drinks, cold drinks and pastries to an eager clientele.

But despite the crowd -- perhaps unusually big for mid-morning on a Tuesday -- the cafe enjoyed a surprising calm, probably because most conversations were held in silence.

For Witzofsky, it was a revelation.

"It gives deaf people space off-campus, a place to come to and socialize, eat food with other deaf people and meet other deaf people as well, and the deaf employees," she told AFP.

"When I go to a normal Starbucks, I either talk and hope they can hear me and understand, or I show them my order on my phone," she explained.

"Here, your name appears on a screen, which I really, really like, because when they call my order I don't have to try to hear it -- it's right on the screen."

'SIGN OF THE WEEK' 

The store has other specific features designed to embrace and celebrate deaf culture -- one is the "sign of the week."

Right now, it's for coffee: two closed fists, one on top of the other, rotating in a move that brings to mind a coffee grinder.

There are also special mugs for sale with designs by a deaf artist, and a transcription of how to sign the logo of the store.

Starbucks says the initiative is aimed at bringing diverse communities together. It comes six months after the arrest of two black men in a Philadelphia store that sparked accusations of racism.

The opening got a boost from the presence of Oscar-winning deaf actress Marlee Matlin.

Seated on an outside patio with their coffees, retired couple Albert and Peggy Hlibok said they had come to the store to "intermingle with the hearing world."

"I think it's a wonderful opportunity for all of us," said Peggy, with the help of an interpreter.

"It will teach people not to be afraid to communicate with deaf people. They can see it's just part of who we are, part of our lives, part of the diversity of life."

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World's 'most beautiful' Starbucks, first in Italy, set to open

MILAN -- US coffee giant Starbucks opens its first branch in Italy on Thursday, with the sprawling Milan "roastery" at the avant-garde of an ambitious plan to conquer the spiritual home of espresso.

The Seattle-based multinational is taking on a mainstay of Italian culture: a thick thimbleful of powerful black liquid served at the bar in cafés throughout the country, 6 billion times a year, according to Italian catering federation FIPE.

Not surprising then that Starbucks, which is well-established elsewhere in Europe, has already delayed its entry into the Italian market, originally planned for early 2017.

Outspoken former CEO Howard Schultz -- who quit the chain in June amid talk that he could run for the White House in 2020 -- has repeatedly said that the company would come to Italy with "humility."

"During my first trip to Milan in 1983, I was captivated by the sense of community I found in the city’s espresso bars – the moments of human connection that passed so freely and genuinely between baristas and their customers," said Schultz, now chairman emeritus after masterminding Starbucks worldwide expansion. 

The company hopes that its 2,300-square-meter (25,000 square foot) Reserve Roastery -- "the most beautiful Starbucks in the world" -- will entice customers in for a new coffee experience.

'THE RIGHT MOMENT'

Matteo Figura of market researchers NPD Group said that Starbucks is entering the Italian market at the right moment.

"At the moment, chains account for only 20 percent of Italy's catering trade, the rest are independent businesses. But chains are expanding rapidly, more than four percent" a year, he told AFP.

The way that Italians consume coffee has also changed a lot in recent years. While previously an espresso was "an opportunity to have an energy 'shot'" consumers today increasingly care more about quality and the experience they can have." 

Starbucks will primarily target millennials between 18 and 34 years old, said Figura, adding that the Italian market has room for both traditional cafés and Starbucks, as they target different consumers.

"Cracking the home of coffee culture is a tough challenge, with many Italians deriding the move as ridiculous," said Alexandre Loeur, an analyst at Euromonitor International.

But "while snobbery might initially prevail, the younger generations are more open to the type of specialty coffee offered by the Seattle based brand," he said.

"If we look at France, another country with a strong coffee culture, millennial consumers are undoubtedly responding well to specialty coffees. We can therefore infer that Starbucks could do well (in Italy), in the medium to long-term."

'COLOSSUS'

"It remains to be seen if they'll get a foothold in Italy," said Alessandro Panzarino, who runs the Cafe Martini, around the corner from the new Starbucks.

He admits to being a little fearful "of this colossus" and expects there to be an initial boom in trade at his new neighbor.

"Then we have to see if people get bored after a while," he said, and if people are happy to spend so much, with a traditional Milanese espresso going for around one euro (one dollar).

Simone Dusi, 35, won't be swayed.

"I really don't like Starbucks coffee," he told AFP. "I like strong coffee (so) absolutely no way to diluted coffee or variants like Frappuccino!"

The company, which had a turnover of 22.4 billion dollars in 2017, has almost 29,000 cafes in 77 countries, including 12,000 in the US and 3,300 in China.

Starbucks plans to close 150 branches in the coming year because of a slowdown in the US market.

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Starbucks chief Schultz retiring, may run for president

WASHINGTON - Howard Schultz, who built a small Seattle coffee chain into the global powerhouse Starbucks, announced Monday he was retiring from the company, fueling speculation he may seek the Democratic presidential nomination in 2020.

Schultz, 64, has been serving as executive chairman of Starbucks since stepping down as chief executive in April of last year and handing over to Kevin Johnson.

Schultz will leave the company at the end of the month and take on the honorary title of chairman emeritus, Starbucks said in a statement.

Schultz's announcement triggered immediate speculation that he may consider entering politics as a Democrat and run for the White House two years from now.

Schultz told The New York Times he hadn't decided on his next move yet, but "for some time now, I have been deeply concerned about our country — the growing division at home and our standing in the world."

Schultz, who has been openly critical of President Donald Trump, said "one of the things I want to do in my next chapter is to figure out if there is a role I can play in giving back.

"I intend to think about a range of options, and that could include public service," he said, when asked if he was weighing a presidential run.

"But I'm a long way from making any decisions about the future.

"I want to be of service to our country, but that doesn't mean I need to run for public office to accomplish that," Schultz told the Times.

Schultz joined Starbucks in 1982 as director of operations and marketing and helped transform the Seattle-based company into a global behemoth with more than 28,000 outlets in 77 countries.

"I set out to build a company that my father, a blue-collar worker and World War II veteran, never had a chance to work for," Schultz said in an open letter to past and present Starbucks employees.

"Together we've done that, and so much more, by balancing profitability and social conscience, compassion and rigor, and love and responsibility."

RACIAL BIAS AWARENESS TRAINING


In its statement, Starbucks did not mention any political ambitions for the departing executive but said Schultz was "looking forward to spending more time with his family this summer."

"He is also writing a book about Starbucks social impact work and the efforts to redefine the role and responsibility of a public company in an ever-changing society," it said.

Schultz's departure comes a week after the company closed more than 8,000 US stores to provide racial bias awareness training to around 175,000 employees.

The move followed the April 12 arrest of 2 black men in a Philadelphia Starbucks, which sparked outrage, protests and soul-searching about racial tensions that have been exacerbated under President Trump.

Speaking to CNN about the closure, Schultz said "we realize that four hours of training is not going to solve racial inequity in America or anyone coming into our stores who may have a problem.

"But we have to start the conversation."

Starbucks shares were down 1.31 percent to $56.32 in after-hours trading on Wall Street.

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Starbucks shuts 8,000 US stores for racial bias training

NEW YORK, United States - Starbucks closed more than 8,000 stores on Tuesday to train around 175,000 employees against racial bias, an unprecedented public operation that highlights America's ongoing struggle with discrimination.

The move follows the April 12 arrest of two black men in a Philadelphia Starbucks, which sparked outrage, protests and soul-searching about racial tensions that have deteriorated under President Donald Trump.

For many, the training was overshadowed by ABC's decision to cancel hit sitcom "Roseanne" after its star Roseanne Barr, a Trump supporter, made a remark decried as racist against former White House aide Valerie Jarrett.

"We realize that four hours of training is not going to solve racial inequity in America or anyone coming into our stores who may have a problem," Starbucks executive chairman Howard Schultz admitted on CNN.

"But we have to start the conversation."

While store managers declined to talk to media and the press was not invited to the training sessions, staff were to watch taped messages from Schultz and CEO Kevin Johnson, as well as a message from Common, the rapper and activist.

Employees will watch a film from documentary maker Stanley Nelson on African American history and the civil rights struggle, before discussing in groups their own experience of racial discrimination.

The curriculum, to be made available at a later date, was drawn up in consultation with US president Barack Obama's former attorney general Eric Holder and civil rights lawyer Bryan Stevenson, among others.

As a result, frappuccino lovers had to shop elsewhere. The coffee giant said it was designed to make Starbucks "a place where all people feel welcome."

The company pledged to integrate further trainings in the United States and around the world. Starbucks has 25,000 coffee shops in 70 countries.

Estimated to cost Starbucks $12-14 million in lost sales, the exercise was criticized by some as virtue signaling, but has been cautiously welcomed by black officials and activists.

Sherrilyn Ifill, president of the NAACP Legal Defense and Educational Fund and one of those consulted on the curriculum, said it "created an important window" for retail corporations "to honestly and forthrightly tackle racial inequality."

'IF IT IS GENUINE'

In New York and Washington, Starbucks customers who dashed out for a sandwich or a caffeine fix before it was too late welcomed the move.

"Smart idea. It should have been done a while ago," sales rep Chad Mittleman, 31, told AFP in Midtown Manhattan.

"If it is actually genuine and not a PR move, it will be a good thing," said Devon Smith, a 31-year-old African American on L Street near the White House.

"At the end of the day, it is all in the attitude and belief of the individual employee," he said. "It's good but I don't know whether it will bring definitive change."

Starbucks announced the training on April 17 as it battled to contain outrage over the arrest of Rashon Nelson and Donte Robinson, apologizing and adopting an open bathroom policy to non-paying customers.

After Nelson and Robinson stepped into the cafe, one of them asked to use the restroom while waiting for a third person to arrive for a business meeting. 

Staff refused, on the grounds that he was not a customer. After the pair sat down to wait, the manager called the police.

A video that went viral showed uniformed officers questioning then handcuffing the two men, who put up no resistance, while a white client repeatedly asks an officer, "What'd they do? What'd they do?"

But US social networks have been rocked by a slew of other recent examples of racial discrimination going viral. A student called the police in May when a black graduate student at Yale University fell asleep in a common room.

Earlier this month, a 22-year-old black man was choked by police at a Waffle House in North Carolina after taking his sister to prom, the fourth incident at outlets of the restaurant to attract national attention in less than two weeks.

Other large companies have also adopted racial bias training, albeit with less fanfare. Target introduced its first unconscious bias sessions in 2017, which it says are being rolled out across the company.

American Airlines announced last year that it would train 120,000 employees after the civil rights group NAACP warned against "a pattern of disturbing incidents" reported by African-American passengers specific to the company.

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Starbucks takes full control of China stores in $1.3-B deal

US coffee chain Starbucks has announced it will take full control of its mainland China outlets in a $1.3 billion deal, the largest single acquisition in the company's history.

It will buy the remaining 50 percent of its East China joint venture from Taiwan's food and beverage giant Uni-President, according to a company statement issued Thursday.

Starbucks will gain full control of 1,300 stores in 25 cities, including commercial hub Shanghai, from Uni-President Enterprises and a subsidiary, the statement said.

Starbucks has seen rapid expansion in China, where it opened its first cafe 17 years ago. By 2011, the company had 400 outlets while today it has nearly 600 in Shanghai alone.

Kevin Johnson, Starbucks chief executive, described the move as "a critical next step" that can help fulfill its goal of almost doubling the number of its mainland outlets to 5,000 from the current 2,800.

"Unifying the Starbucks business under a full company-operated structure in China reinforces our commitment to the market," Johnson said in the statement.

Chairman Howard Schultz, who stepped aside as Starbucks chief executive earlier this year, has said that China could one day become the chain's largest market, overtaking the US where it has some 7,500 stores.

The move comes as the US coffee giant saw a 8.3 percent drop in net earnings on the year, to $691.6 million, for the third quarter ended on July 2, according to its earnings report.

The company plans to close 379 Teavana tea shops due to poor performance, it said.

The Seattle-based firm also said it will fully license its Taiwan market operations, selling 50 percent of its Taiwan joint venture President Starbucks Coffee for $175 million to Uni-President.

Starbucks fully licensed its Macau and Hong Kong stores in 2011.

The new deals are expected to be closed by early 2018 and are subject to regulatory approvals.

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Starbucks says aims to open 500 new stores in China in 2016

HONG KONG - Starbucks Corp., the world's largest coffee chain, said on Tuesday it aims to open 500 stores in China this year, shrugging off a slowdown in the world's second-largest economy that has hit global retailers.

Starbucks executives have said they have not seen a systemic slowdown in China, even as the country's cooling economy has been blamed for soft results by the likes of KFC and Pizza Hut parent Yum Brands.

The company said in a statement it aims to create 10,000 jobs in China every year through 2019 as it continues to expand in its largest market outside the United States.

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Starbucks cafe sales hot, but holiday forecast disappoints

Starbucks Corp. delivered a disappointing profit forecast for the holiday quarter on the heels of strong cafe sales and profit growth, sending its shares lower.

Starbucks' Americas division and its Europe, Middle East and Africa unit last quarter turned in surprisingly strong sales at established restaurants. But its up-and-coming Asia region fell short during an economic cool-down in China that has roiled global stock markets.

The world's biggest coffee chain said on Thursday its holiday quarter that began Sept. 28 would be dented by the effect of the strong U.S. dollar.

The company, known for starting its fiscal years with conservative estimates, also issued a 2016 forecast with little upside for investors who are grappling with concerns that shares of the Seattle-based chain are too hot after rallying more than 60 percent over the past year.

Starbucks shares fell as much as 3 percent in after-hours trading, before settling at $62, down 0.8 percent.

Global sales at cafes open at least 13 months rose 8 percent in the fiscal fourth quarter, beating the 6.9 percent rise expected by analysts polled by research firm Consensus Metrix.

China's cooling economy has global investors on edge and already has been blamed for soft results from KFC and Pizza Hut parent Yum Brands Inc.

Starbucks executives said they have not seen a systemic slowdown in China, noting that comparable sales continued to accelerate into October.

The company declined to break out same-store sales for China, home to 1,800 Starbucks cafes, or about 8 percent of the company's total. Starbucks, which expects China to one day be its largest market outside the United States, said it would have 3,400 cafes there by 2019.

PAY HIKES, TECH HELP

Chief Executive Howard Schultz attributed the better-than-expected fourth-quarter cafe sales growth to several new initiatives at the chain, which recently improved its food and is rolling out new drinks such as the Toasted Graham Latte.

Among other things, Schultz said U.S. cafe service improved and turnover fell after Starbucks raised pay and improved benefits for cafe workers. The company added new delivery services and introduced mobile technology that allows customers to skip lines by ordering and paying for their drinks via mobile devices.

"Starbucks is playing the long game," Schultz said on a call with analysts.

Fourth-quarter net income jumped 11 percent to $652.5 million, or 43 cents per share, matching analysts' average target according to Thomson Reuters I/B/E/S.

Starbucks estimated first-quarter earnings of 44 cents to 45 cents, excluding items. Analysts on average had a target of 47 cents for the quarter, the company's biggest for revenue, according to Thomson Reuters I/B/E/S.

The company forecast fiscal 2016 earnings, excluding items, of $1.87 to $1.89 per share, in line with analysts' average call for $1.88 per share.

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Jollibee to own, operate Dunkin' Donuts brand in China

MANILA, Philippines - Fast food giant Jollibee Foods Corp. will soon operate popular US baked goods and coffee chain Dunkin' Donuts in China.

In a disclosure to the stock exchange, JFC said its subsidiary Jollibee Worldwide is teaming up with Jasmine Asset Holding Ltd. to form a company to own and operate the Dunkin' Donuts chain in China.

Jasmine Asset Holding is a subsidiary of Asia-based investment firm RRJ Capital.

Under the joint venture agreement, Jollibee Worldwide will own 60 percent of the business, while 40 percent will be owned by Jasmine.

Jollibee and Jasmine have committed to investing up to $300 million in the joint venture company. Of the amount, Jollibee Worldwide will contribute up to $180 million.

Jollibee Worldwide will also be directly responsible for handling the Dunkin' Donuts business' day-to-day operations in China.

Jollibee and Jasmine have also agreed to execute a master franchise agreement with Dunkin' Donuts once the joint venture company is formed.

Under the master franchise agreement, the joint venture will have the exclusive right to develop Dunkin' Donuts in the following territories in China - Hong Kong, Macau, Fujian, Hunan, Jianxi, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Guizhou, Sichuan, Yunan, Heilongjiang and Jilin.

JFC said the joint venture will open and operate a minimum of 1,459 shops in China over 20 years.

Dunkin' Donuts is a leading baked goods and coffee chain, with 11,123 stores worldwide. It has 7,941 franchised stores in the US and 3,182 stores in 34 countries.

JFC operates the Philippines' largest food service network, with 2,283 restaurants. It also operates 603 stores abroad.

Dunkin' Donuts is not the first time JFC has invested overseas. It has 50 percent interest in joint ventures for Highlands Coffee in Vietnam and the Philippines, Sabu in China and Pho 24 in various Asian countries.

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Starbucks overcharging Chinese consumers?

BEIJING - Starbucks has become the latest foreign firm to be roasted by China's state-run media, with a series of accusations that the world's largest coffee shop chain is overcharging Chinese consumers.

State broadcaster CCTV aired a seven-minute report criticising the firm's pricing in China, arguing that a tall latte in Beijing is more expensive than in London, Chicago and Mumbai.

The report on Sunday gave the price of a Beijing latte as 27 yuan ($4.42), compared with 24.25 yuan ($3.97) in London, 19.98 yuan ($3.26) in Chicago and 14.6 yuan ($2.39) in Mumbai.

It came after a stream of print stories attacking the Seattle-based firm, with the state-run Economic Information Daily accusing it of "profiteering".

The China Daily newspaper last week took aim at the chain in an article headlined: "Starbucks can't justify high prices in China."

The allegations come after US tech giant Apple was subjected to a barrage of attacks earlier this year over its warranty policy and customer service, which state media cited as examples of its "unparalleled arrogance" toward Chinese consumers.

The criticism stopped after Apple CEO Tim Cook apologised.

Foreign baby formula and pharmaceutical firms have also recently been targeted by authorities over allegations of price-fixing and corruption.

The clampdowns are partly an official response to public frustration over high prices for imported goods, analysts say, but by singling out largely overseas firms they have raised alarm in the foreign business community.

The media focus on Starbucks was because "most probably Starbucks is the biggest and most famous" coffee chain in China, said Kevin Yeong, managing director of the Benchmark Asia Research Group.

"For the past few months, I've been very concerned about...any foreign-owned company, because it looks like the local government is trying to do something to restrict foreign companies," he added.

In a statement Starbucks said that its pricing in different cities is based on a variety of factors, including infrastructure investment, real estate, currency valuation and labour costs.

"Each Starbucks market is unique and has different operating costs, so it would be inaccurate to draw conclusions about one market based on the prices in a different market," the company said.

"We continue to be humbled by the support we have received from our customers and the relevant authorities within the Chinese government," it added.

But on its verified account on China's hugely popular microblogging site Sina Weibo, it posted a photo of a pencil with a toy horse on its end -- a visual pun on a highly offensive Chinese obscenity.

Starbucks opened its doors in China in 1999 and now has more than 1,000 stores in the country and growing.

China is likely to overtake Canada as Starbucks' second-largest market after the US next year, and it is aiming to reach 1,500 stores by 2015, according to a spokeswoman.

Analysts said price differences could be explained not only by Starbucks' varied operating costs across the globe but also by the different role the coffee chain plays in the lives of Chinese consumers.

In the US, Starbucks gets much more of its revenue from takeaway sales. But in China most business comes from customers who take their time inside the store, noted James Roy, a senior analyst with the Shanghai-based China Market Research Group.

"In China, it's a different positioning and a different value proposition," he said. "They invest more in making these stores themselves more premium options and making more of the environments as well."

One new location opened in Beijing last month is a glistening two-storey, 24-hour store featuring live music at the weekend.

Yeong noted that while Starbucks' prices may be cheaper outside China, they are on a par with -- and in some cases, cheaper than -- those of its foreign competitors within China.

Some Internet users mocked the CCTV report.

"The price of housing, cars and gasoline, Internet service and taxes in China are all more expensive than in other countries," argued one Sina Weibo user. "Why can't Starbucks be more expensive, too?"

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Starbucks to open 2 new stores by September

MANILA - True to its commitment of expanding its local footprint with 300 branches by 2017, Starbucks Philippines is ending the fiscal year with the opening of two more stores, bringing in a total of 217 outlets of the leading global coffee chain.

“We follow a fiscal year which ends every September 30. That’s our cycle. So we would have opened 18 stores from October 1 of last year to September of this year,” Starbucks Philippines Chief Operating Officer Noey Lopez told the BusinessMirror over the weekend.

He declined to reveal the exact locations and the amount of investment for the soon-to-open Starbucks outlets.

Lopez noted that the company’s expansion strategy indicates that the coffee chain operation remains an “excellent business” amid the emergence of rival tea shops in the market.

“I think it’s very vibrant, competitive and good for the customers. Having said that, yes, it’s still a very sustainable business,” he stressed.

For the premier roaster and retailer of specialty coffee in the world, the Philippines remains a “very important market” for Starbucks given its strong economy, improved infrastructure and new property developments now taking place.

“So for a business like ours, there’s a lot of opportunity. And we want to bring Starbucks to as many people as we can. We do it one customer, one cup of coffee at a time in the one store at a time,” Lopez said.

With its focus on continued delivery of the “Starbucks Experience” to the customers, the company recently opened its 215th store in the new headquarters of Globe Telecom in Fort Bonifacio.

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Starbucks founder visits award-winning PH store

MANILA, Philippines - Starbucks founder and chief executive officer Howard Schultz visited the coffee chain's store at The Grove by Rockwell in Pasig City, Thursday morning.

Schultz did a quick tour of the store, which recently won Starbucks' "Best New Core Store Design in Asia" in 2013. The Starbucks store at The Grove beat out designs submitted by 111 Starbucks outlets around Asia.

The Starbucks shop has a uniquely Philippine resort theme that matches the aesthetics of The Grove by Rockwell. Located along C5, the 5.4 hectare The Grove property will feature six residential towers.

Schultz, who is in Manila only for a day, said this was his second visit to the Philippines. He chatted with the store manager and baristas, and posed for photos with some customers.

He also attended the opening of the new Starbucks store with drive-thru in Libis.

Rustan Coffee Corp., local franchise holder of Starbucks and a member of the Rustan Group of Companies, opened the first store in the Philippines at 6750 Ayala Avenue in December 1997.

At that time, the Philippines was only the third market to open outside North America. According to the Starbucks Philippines website, to date there are 195 Starbucks branches throughout the country.

The coffee chain now has 18,000 outlets around the world, with revenues of $13.3 billion in 2012. Starbucks has seen strong growth in the Asia-Pacific region, particularly China where it has more than 800 stores and Japan where it has 975 stores as of end 2012.

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