Corporate Governance

Starbucks, Social Responsibility and Free Internet

By J. Robert Brown

We have often written on this Blog about Starbucks and the need for greater emphasis on social responsibility in order to retain customers, particularly as competition from McDonalds (which is planning to install baristas in 20,000 franchises) heats up.  As an aside, we have noted that Starbucks is behind the curve in failing to provide free Internet, something done at almost every other coffee shop (and numerous other merchants). 

Starbucks has put in place a loyalty card and this week began offering holders two hours of free Internet use (so writes Your Money, Loyalty Program Offers Freebies (but Read the Small Print).  It is a useful step but one that only illustrates the weaknesses in the company's approach.  Only those aware of the benefit will take advantage of it; it will be useful only to those with relatively short term Internet needs.  To attract and retain customers, Starbucks needs, among other things, to offer  free Internet, no strings attached. 

Full post as published by The Race to the Bottom on June 07, 2008 (boomark / email).