Starbucks Corp. (NASDAQ: SBUX) was forced to recall 440,000 holiday mugs because they could burn customers. The partially metal mugs can break apart or overheat in microwaves or if filled with very hot liquid. The news is another blow to the coffee store’s image, already hurt by its treatment of workers who wish to unionize.
The U.S. Consumer Product Safety Commission said 12 mugs broke, resulting in 10 injuries. The mugs were sold online and at stores such as Walmart and Target. According to CNN, “The different gift sets were sold from November 2023 through January 2024 for about $10, $13, or $20.” People who bought the mugs were told to return them to retailers for a full refund. (Here are five reasons to avoid Starbucks today.)
Starbucks has been prominently seen in the media recently. After being charged with violating the rights of union members, it has agreed to negotiate with Workers United. The plan is for the negotiations to occur store to store. According to Barron’s, the process will be drawn out. Prior to the agreement to negotiate, unions backed Starbucks workers and even tried to get seats on the company’s board.
Starbucks has had a pristine image and has touted how it treats its workers. This includes medical insurance, paid time off, and a 401(k). However, Starbucks pays frontline store workers as little as $15 an hour, according to a New York Times article titled “Inside Starbucks’ Dirty War Against Organized Labor.”
This bad publicity occurred during a period when Starbucks lost its position as a growth stock. Investors have faced a sharp stock drop of 9% as the market has increased by 30%.
Starbucks hasn’t had much good news recently.
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