|Hate group leader Tim Wildmon
Image via American Family Association
American Family Association, an anti-LGBT hate group, is ecstatic that Starbucks (Nasdaq:SBUX) is closing some stores. The rubes at AFA, lacking curiosity, do not grasp the economic fundamentals. According to AFA: After PC controversies, Starbucks closing 150 stores. “PC controversies?”
In the wake of Starbucks’ numerous politically correct controversies – from hiring 10,000 refugees, to “gay holiday cups,” to its plastic straw ban, to closing 8,000 stores nationwide for a day for racial bias training – the popular coffee franchise’ is planning “significant changes,” including layoffs and closing 150 stores.
Less Americans are flocking to the franchise’s coffee shops across the nation to get their favorite cup of joe, which has spurred Starbucks’ decision to close 150 underperforming stores, but the exact reasons for the drop in business remain unclear.
Really? Starbucks ordinarily closes about 50 underperforming stores each year and, yes, they have accelerated that with plans to close 150 locations this fiscal year (ending September 30). However, in the first quarter of 2018, Starbucks launched about 700 stores. In the third quarter ended July 1, Starbucks reported consolidated net revenues of $6.3 billion, up 11% over the prior year and a 30% increase in earnings per share (GAAP).
Starbucks is restructuring to combat losses in market share to smaller stores in some areas. They are trying to become leaner corporately in order to be less bureaucratic and more innovative. Some people are probably going to lose their jobs.
One thing you can be sure of: Starbucks’ LGBT friendliness attracts more business than it turns away. Why am I so sure? Because America’s culture has changed. At least two-thirds of our citizens support marriage equality. Americans have probably noticed that none of the consequences promised by the religious right have come to pass.
Unfortunately, the Republican Party has become a captive of Christian fundamentalists giving the noisy fringe an outsized voice.
AFA, by the way, sells some schlock, overpriced coffee.
In early 2012 National Organization for Marriage began their Dump Starbucks due to the company’s support of marriage equality. More people dumped NOM and the company has prospered. With its progressive corporate culture, Starbucks is a frequent target of the religious right.