Starbucks shares have fallen about 9% since mid-November (Reuters)
Starbucks suffered losses estimated at $11 billion amid boycotts over Israel's war on Gaza, as well as the impact of employee strikes and poor promotional activity.
Recent weeks have been full of turmoil for Starbucks, with boycotts and employee strikes seeking better work environment and wages, and poor demand for promotions leading to a $10.98 billion drop in the company's market value.
A coffee shop analyst said that while conflicts seem multifaceted for Starbucks, these unfavorable negative effects of the company's plans point to challenges about its future.
The stock market has severely impacted Starbucks at a time when the company is facing complex societal issues, prompting investors to back down from owning the company's shares and pushing its shares into the longest losing streak since its first stock market offering in 1992.
Since Nov. 16, Starbucks shares have fallen 8.96 percent, equivalent to a loss of nearly $11 billion, amid reports of slowing sales and poor response to holiday offers.
Starbucks found itself in a bind after a tweet from the group's workers' union expressing solidarity with the Palestinians, and the magazine noted that the company's actions against the union and its prosecution extended to its commercial activity.
Starbucks' prosecution of the union led to an anti-union campaign on social media and prompted a number of union workers to protest against it at more than 200 U.S. branches, disrupting the normal functioning of the company's branches.
Starbucks faces the challenge of maintaining its brand reputation amid these influences.
The day after Starbucks sued its union for supporting Palestine, campaigns escalated on social media platforms calling for a boycott of the popular American coffee chain in the Arab world.
The chain has more than 35,86 branches around the world in 9 countries, including more than <>,<> branches in the United States alone, so its employees have established a union to represent them before the company's management.
Source : Al Jazeera + Newsweek