The Starbucks Dirty Bathroom Problem

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The Starbucks Dirty Bathroom Problem

© Wachiwit / iStock Editorial via Getty Images

Dirty bathrooms make customers of most establishments which have them less likely to be repeat customers, almost certainly. For gas stations, this may not be as much of a problem. People don’t eat or drink gas. Restaurants and fast food establishments are another matter. Dirty bathrooms threaten repeat visits and damage brands. Starbucks has a dirty bathroom problem.
[nativounit]
Starbucks has over 15,000 locations in the U.S. The company owns about 9,000. The balance of stores are licensed. Starbucks might argue that it does not have much control over the licensed stores. If so, in terms of sanitary operations, that is a shame.

Starbucks may also argue that an occasional dirty bathroom is a small problem. Management may also say it cannot police every location every hour and even every day. However, a customer lost may be a customer who goes to McDonald’s or the local coffee shop.

One would think Starbucks has enough problems. It chews through CEOs. Current interim CEO Howard Schulz has cycled in and out three times since 1986. Likely, he is the one who pushes for the board to force out people who are not up to his standards. Schulz has had a rough ride this time. Labor problems have plagued Starbucks. Schulz also claims the stores could operate and begin installing new coffee-making machines and “improving” training. Regardless of his plans, shares have dropped about 20% since he returned.
[wallst_email_signup]
Starbucks needs to decide whether minor problems make the public believe it does not care about the essentials of making and serving food to the public. If it believes the problem of dirty bathrooms is too hard to address, then the Starbucks brand faces a problem — which it may already have.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618