Virtue-signalling and reality: A lesson for business

Seems even big virtue-signalling companies can’t escape basic rules of economics. Breitbart reports:

Quote:Starbucks has announced that it will close 150 locations in some of the nation?s big cities to get ahead of its worst growth performance in nine years. But the company also admitted it is racing to blunt the effect of cities with higher minimum wages and other business-killing regulations.

[…]With new CEO Kevin Johnson beginning to make his mark on the coffee giant, the closures will hit corporate-owned locations mostly in densely populated areas in the U.S., meaning that the old joke that there is a Starbucks on every corner in America?s biggest cities may become a thing of the past.

?Our growth has slowed a bit,? Johnson admitted in a recent interview, Bloomberg said. ?I expect better, I think our shareholders deserve better, and we?re committed to address that.?End of quote.

Quote:But one other thing Johnson admitted with the company?s percolating closure rate is that higher minimum wage laws have hurt their bottom line.

[…]The closing stores are often in ?major metro areas where increases in wage and occupancy and other regulatory requirements? are making them unprofitable, Johnson said. ?Now, in a lot of ways, it?s middle America and the South that presents an opportunity.?End of quote.

In other words … Quote:

Quote:The inference is clear: large, liberal cities raising minimum wages have stifled growth, so Starbucks is beginning the process of fleeing the cities for the high growth, low wage south and rural areas of the nation where regulations are more friendly and exorbitant minimum wage laws are non-existent.

For a company that prides itself as one of the most left-wing, ?progressive? companies in America, this admission is somewhat shocking and evidence of a ?do as I say, not as I do? mentality. While Starbucks talks the game for progressive causes, it is opting out of the big cities that have put in place the very anti-business policies Starbucks has claimed to support.End of quote.

Love it. A business pushes for ?progressive? causes and reality bites them back. As the great modern philosopher, Mike Tyson said, “everyone has a plan until they get hit”. I can’t laugh too much though. Real jobs and real livelihoods have been lost but at least it shows what happens when businesses push ?progressive? causes at the expense of sound business practice.

And with the new CEO, it looks like Starbucks will be getting back to its core business of making good coffee rather than virtue-signalling its way into liquidation. Quote:

Quote:[..]Starbucks reported strong overseas growth, despite its anemic U.S. numbers. The coffeehouse chain will more than triple its commitment in China with plans to open a new location there every 15 hours through the year 2022.End of quote.