Jan 29, 2019

Starbucks has a 2020 problem

Illustration: Rebecca Zisser/Axios

Starbucks chairman emeritus Howard Schultz is a long shot to win the White House, but he's a sure bet to create headaches for the coffee chain he turned into a global empire.

Why it matters: Schultz's reputation and fortune come from his time as the Ray Kroc of coffee, turning a small Seattle roaster with four stores into a 28,000-store phenomenon spanning 77 countries. That means massive scrutiny of Starbucks, by both the media and political opponents, unlike anything the company has yet experienced.

A former presidential campaign staffer says: "If I were the DNC or RNC, I'd already be sending people to Starbucks stores around the country, looking for employees with serious complaints."

  • "Maybe complaints that they emailed Schultz about but didn't hear back. Or the former mom and pop coffee shop that was put out of business when Starbucks showed up. It only takes one."

Schultz's successor as CEO, Kevin Johnson, emailed the chain's 350,000 employees worldwide a message at 6 a.m. yesterday that said: "As a company, we don’t get involved in national political campaigns. And nothing changes for Starbucks."

  • Good luck with that. If the company is publicly attacked, it will have little choice but to defend itself.
  • In fact, Starbucks officials have prepared for a media onslaught, and they have studied the cases of other business titans who have run for office.

Schultz and Starbucks are tied at the hip, which means they'll need to work together. Kind of like Mitt Romney and Bain Capital in 2012.

  • For Schultz, that means quickly identifying supporters in upper Starbucks management (including in the communications and legal departments), and leveraging those people when the campaign needs time-sensitive answers.
  • It also would be beneficial to tap a former Starbucks executive as a trusted go-between, like Romney did with former Bain Capital co-founder Bob White.

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Trump rules out quarantine in New York, New Jersey, Connecticut after pushback

President Trump on the White House grounds on Saturdya. Photo: Sarah Silbiger/Getty Images

President Trump tweeted Saturday night that he's decided not try and enforce a short-term quarantine on New York, New Jersey and parts of Connecticut, but a "strong" travel advisory will be issued for those states.

Why it matters: The president said hours earlier he was considering the move to combat the rise in novel coronavirus cases. But he received pushback, most notably from New York Gov. Andrew Cuomo (D), who told CNN it would cause "chaos." "This would be a federal declaration of war on states," Cuomo added.

Trump weighs quarantine of New York, New Jersey, Connecticut

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

President Trump said Saturday he's considering a short-term quarantine of New York, New Jersey and parts of Connecticut, which have already taken steps to help residents isolate. Gov. Andrew Cuomo reacted to Trump's comments by telling CNN, "This would be a federal declaration of war on states" and that it would cause "chaos."

The big picture: With more than 121,000 people infected, the U.S. has the most COVID-19 cases in the world, exceeding China and Italy, per data from Johns Hopkins. A second wave of American cities, including Boston, Detroit, New Orleans and Philadelphia, are reporting influxes of cases.

Go deeperArrowUpdated 27 mins ago - Health

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7:30 p.m. ET: 660,706 — Total deaths: 30,652 — Total recoveries: 139,304.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 7:30 p.m. ET: 121,478 — Total deaths: 2,026 — Total recoveries: 1,072.
  3. Federal government latest: President Trump is considering a quarantine on New York, parts of New Jersey and Connecticut.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters that supported Trump's handling of the virus less than two weeks ago are now balking at his call for the U.S. to be "opened up" by Easter.
  5. World updates: In Spain, over 1,400 people were confirmed dead between Thursday to Saturday.
  6. 🚀 Space updates: OneWeb filed for bankruptcy amid the novel coronavirus pandemic.
  7. Hollywood: Tom Hanks and Rita Wilson have returned to U.S. after being treated for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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