Starbucks pledges to have 30% of corporate workforce identify as a minority by 2025 (2024)

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Scott Mlyn | CNBC

Starbucks said Wednesday it is starting a mentorship program, piloting outreach workers in its cafes and tying team diversity to executive compensation as part of its broader plan to step up its commitment to inclusion and become a more diverse company.

By 2025, it's aiming to have employees who identify as Black, Indigenous or people of color make up at least 30% of workers at all corporate levels, from managers to senior executives. The company will be setting annual targets based on retention rates.

"We hope that we can influence other companies to follow our leadership or join in as well," said Chief Operating Officer Roz Brewer.

This summer's protests against racial inequality and police brutality, sparked by the deaths of George Floyd and Breonna Taylor, pushed Corporate America to review its shortcomings under scrutiny from consumers and activists. But Starbucks' reckoning with racial bias began earlier.

More than two years ago, the company closed down all of its U.S. company-owned cafes for a day of training aimed at stamping out racial bias.

A month earlier, at a Philadelphia location, policearrestedtwo Black men who were waiting for a business meeting to start before ordering anything. One of the men, Rashon Nelson, said he asked to use the restroom immediately after walking into the Starbucks. But he said he was told it was for paying customers only. A video of the incident went viral on social media, leading to boycotts and an internal reassessment of the company's policies.

In the wake of the incident and backlash, Starbucks also commissioned an independent civil rights assessment. Last year, the company hired Nzinga Shaw as its first global chief inclusion and diversity officer.

Among the changes soon coming to Starbucks are a mentorship program aimed at connecting employees who are Black, Indigenous or people of color with senior leaders. In 2019, just 15% of Starbucks' senior leadership were people of color. About 46% of its overall workforce identifies as a minority.

"I don't think ever before that we've been that intentional," Brewer said.

Starbucks also plans to partner with professional organizations that focus on developing minority leaders.

Furthermore, the inclusivity and diversity of teams are now tied to executive compensation. The company plans to establish an executive council to help integrate inclusion and diversity throughout the company and will join the Board Diversity Action Alliance, which includes companies like Macy's and Dow.

All of these changes are meant to advance the diversity of Starbucks' workforce. Beyond having people of color represent 30% of corporate employees at all levels, the company is also aiming to have them occupy at least 40% of retail and manufacturing jobs at all levels by 2025. While about 47% of those overall workers identify as a minority, the company falls short of the target moving up the hierarchy to store managers or regional directors.

Starbucks said it will publicly share data reflecting the diversity of its workforce. Brewer said it would share three years of EEO-1 reports, a federally mandated survey about the makeup of a company's workforce.

"We want to be transparent and also intentional about the work that we have to do to improve upon some of these numbers," Brewer said.

At its cafes, Starbucksis piloting a partnership with United Way to install outreach workers. In 2018, as a result of the Philadelphia arrests, the company modified its policy to allow anyone to sit in its cafes. But the policy has also placed more pressure on baristas, who may not be equipped to handle people without housing or those struggling with substance abuse. The initiative is meant to reduce intervention from law enforcement.

"This kind of outreach further ensures that Starbucks locations are welcoming places for all," CEO Kevin Johnson wrote in a letter to employees.

Starbucks' foundation is also chipping in $1.5 million in neighborhood grants and $5 million on an initiative to support nonprofits that serve minority youths.

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Starbucks pledges to have 30% of corporate workforce identify as a minority by 2025 (2024)

FAQs

Starbucks pledges to have 30% of corporate workforce identify as a minority by 2025? ›

Starbucks set a goal of 30% people of color at all corporate jobs and 40% in every retail and manufacturing role by 2025. Two years later, the company's own workforce demographic reports show there is still much progress to be made: Less than half of all roles reported by the company had reached the goal by 2022.

Who are the minority employees at Starbucks? ›

Breaking down our representation further, our partners are 48.1% white, 31.7% Hispanic or Latino, 8.1% Black, 5.9% Asian, 4.9% Two or More Races, . 6% American Indian or Alaskan Native and . 5% Native Hawaiian or Other Pacific Islander.

What is the diversity rate at Starbucks? ›

All Starbucks (U.S.) 7.7% Black; 28.5% Hispanic or Latinx; 5.9% Asian; 4.9% Multiracial; 51.8% White; 0.6% American Indian or Alaska Native; 0.5% Native Hawaiian or Other Pacific Islander; 0.1% Not Specified.

What percent of Starbucks employees are black? ›

All Starbucks (U.S.) 8.1% Black; 31.7% Hispanic or Latinx; 5.9% Asian; 4.9% Two or more races; 48.1% White; 0.6% American Indian or Alaska Native; 0.5% Native Hawaiian or Other Pacific Islander. 71.4% Female; 28.3% Male.

Does Starbucks have a diversity policy? ›

Starbucks is dedicated to creating a workplace that values and respects people from diverse backgrounds, and enables its employees to do their best work. We honour the unique combination of talents, experiences and perspectives of each partner, making Starbucks' success possible.

What is considered a minority employee? ›

In the United States, racial/ethnic minorities are generally considered to include Hispanic/Latinos, African Americans, Asians, Native Americans, Hawaiian/Pacific Islanders, and those of two or more races.

Who is considered a minority in the workplace? ›

Minorities. The term “minorities” as used in affirmative action refers to four ethnic minority groups: American Indians or Alaskan Natives, Asians, Blacks, Hispanics, Native Hawaiians and Other Pacific Islanders.

Who is Starbucks biggest demographic? ›

High Income, High Spenders

Starbucks' target market is often described as affluent or high income (around $90,000). That's why every affluent neighborhood has a Starbucks not far away. However, numerous Starbucks cafes are surrounded by middle-income neighborhoods where people don't have such high incomes.

What is the Starbucks approach to diversity? ›

At Starbucks, our approach to diversity and inclusion is grounded in building trust at all levels of the organization, understanding the experiences of our partners, identifying what we can do differently and, most importantly, taking action.”

What demographic goes to Starbucks the most? ›

Starbucks' target audience is primarily tech-savvy, with a range of ages from 22 to 60, including a growing number of teenagers. The use of smartphones is prevalent in the 50–60 age group. In 2015, Starbucks launched its app, allowing customers to order and pay via their phone, which turned out to be highly successful.

What is Starbucks ethnicity? ›

Starbucks Corporate. Overall Corporate by Race. 4.6% Black; 8.0% Hispanic or Latinx; 18.9% Asian; 3.7% Two or more races; 63.4% White; 0.2% American Indian or Alaska Native; 0.4% Native Hawaiian or Other Pacific Islander; 0.6% Not Specified.

Why were Starbucks employees fired? ›

The layoffs comes after tensions over a boycott grew in October after Starbucks sued Workers United, which has organized workers in at least 370 U.S. Starbucks stores, over a pro-Palestinian message posted on a union social media account.

Are Starbucks workers underpaid? ›

Starbucks Corporation net worth as of November 2023, is $122 billion dollars and currently pay their baristas $14 to $17 per hour. The average Starbucks salary in Arizona ranges between $18,000 to $45,000 annually. Hardly a livable wage in today's society.

What is the Starbucks discrimination statement? ›

Partners who engage in discrimination or harassment will receive disciplinary action up to and including separation from employment. Starbucks does not tolerate any form of retaliation against a partner who raises concerns or questions about a potential violation of a Starbucks policy.

What is the main goal of Starbucks diversity and inclusion strategy? ›

At TATA Starbucks, our focus has always been to create a culture where our partners feel empowered to bring their authentic selves to work, contributing to a collective sense of belonging and shared purpose. We are always investing in the wellbeing of our partners and remain committed to empowering a diverse workforce.

What is Starbucks corporate culture? ›

We recognize every person for who they are. We treat each other with dignity and care. Joy. We take pride in our work and have fun while doing it. We celebrate each other and our wins.

Who is Starbucks main demographic? ›

High Income, High Spenders

Starbucks' target market is often described as affluent or high income (around $90,000). That's why every affluent neighborhood has a Starbucks not far away. However, numerous Starbucks cafes are surrounded by middle-income neighborhoods where people don't have such high incomes.

What ethnicity are Starbucks customers? ›

While 40 percent of Starbucks baristas are ethnic minorities, 78 percent of its customers are white, according to this article.

Who is the leader of diversity at Starbucks? ›

Dennis Brockman is senior vice president, U.S. Operations. A longtime Starbucks partner, Dennis most recently served as a senior vice president, global chief inclusion and diversity officer, guiding Starbucks journey to advance racial and social equity for our partners (employees), our community and our society.

Who are the majority shareholders of Starbucks? ›

Vanguard owns the most shares of Starbucks (SBUX).

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