I don't have anything to say about the Starbucks RED campaign, but maybe you do

A barista at an Evanston store told me this morning he was surprised there wasn't a lot of chatter about the RED stuff on this blog. I could only shrug. What's there to say? I also got this e-mail: "My partners and I are wondering if 5 cents goes to the red thing if you partner bev drinks." There's a starting point for the Red discussion. It's in your court.

Comments

[merevaudevillian]

RED is such a scam. In the first six months of the program, RED spent $100MM on advertising to turn around $18MM for the Global Fund. I wish this campaign would be based on charity rather than "do your normal thing, don't sacrifice, and feel good about yourself."

[TheSupremeAJ]

Well if you actually read Starbucks RED policy, money is not actually donated to the RED campaign. Its actually donated directly to the charity.

i was also wondering why you didn't cover this. seems like you enjoy posting things about starbucks downward decline rather than the positive things the company continues to contribute to the world.

[elibracken]

i agree with merevaudevillian. as charities and aiding people becomes more popular people, including corporations and charities themselves, have created ways that people dont actually need to "help" to help. the laziness of american society.

[Jim C]

This (red) is just another distraction in the stores to stop the customers from paying attention to all of the problems surrounding Starbucks. It is also PAYBACK from Howie to Don Mackinnon (hear music) for firing Don and keeping Kenny Lombard (ran hear music until he got busted trading favors with record labels - that is, their artists in Starbucks for cash). So, with Kenny gone, Donnie is able to get back and see Howie with the help of Bono. Happy Days.
Waste of time, money and effort.

[GlenFelizRegular]

There was quite a number of comments on Facebook about this event yesterday. One of the more insightful ones was, if you wanted to give to the RED campaign, wouldn't it be better to just skip Starbucks for a day and give the entire amount you would have spent directly to the cause at the website.

http://www.youtube.com/watch?v=kkC5qYH0ln0 Red Ad

[Will Hambly]

When will marketers realize that lightweight partnerships with humanitarian and green causes dilute the honesty of a brand and sow customer distrust and confusion? Partner with good causes because it is the right thing to do, not because you can generate a bump in holiday sales. Here is my commentary: http://a-days-pay.blogspot.com/2008/11/starbucks-red.html

[inopethflames]

a. most people wont find out what red is about to start with.

b. people dont care about $.05 for charity.

c. most people were probably hoping that red would be some kind of drink discount although i assumed from the wording of it on your receipts that it wasnt going to be like that.

d. theres so many charities & stuff people are numb to them & dont care for or against them, when at starbucks they would be interested in a drink discount, not a notification of 5 cents for some charity.

[AliCat]

I think it could be a good thing but I don't think the people in high up places actually care about it. I mean, I'm sure some do, but, ex.

Last year, during December, Broadway Cares/Equity Fights AIDS was doing a benefit concert to benefit AIDS, and cast members from a show in the area put up a poster for their concert, which was held by cast members from several shows - completely for charity. Our manager took the sign down about a day later, saying it wasn't FOR anything and it looked like it was a scam. I explained to her what Broadway Cares is and does and she said 'whatever' and threw it away anyway. Now, this year, since Bono has told them this is what he wants to do an because they have orders from the top, she all of a sudden cares about AIDS and walks around talking about doing something to help the cause all day.

It makes me really want to throw it in her face. She trashed an opportunity for people to help last year and is only perpetuating this because Howard and Bono told her to. It makes me sad to see the hypocrisy.

Hopefully, this will be helpful collectively.

[flbarista]

some of the partners at my store are irritated by the promotion.

i believe his exact words are "There are more important things going on in America to spend money on. There are homeless shelters in town that are going to shut down after the holidays."

it feels kinda nice to be involved, but honestly i have to agree with him

[No confidence in SBUX]

RED is a great concept! However, with ALL the problems internally at Starbucks, I would be shocked if they REALLY followed through with their commitment. We shall see! They change policies and direction like the wind. As previously stated, if you REALLY want to give to this charity, skip Starbucks for a day and donate directly.

[barista lane]

i think its a fine program. i just wish people would stop criticizing the 'bux by saying "only 5 cents"

it almost seems like they'd rather have starbucks give nothing.

and if people really want to give to this charity, they will, and they don't have to skip starbucks for a day to do it.

5 cents x 5000 drinks (just a guesstimate) = $250 per store

$250 x 7000 stores = $1,750,000 on that one day alone

not to mention all of the gingersnap, pm twists, and espresso truffles sold every day throughout the holiday season send .05 to (red) too. and sbux's contribution goes straight to the charity - even if (red) skims off a little, that's still a huge contribution.

[Will]

On the individual level, yes, it would be better to skip your latte and donate the entire amount. Do that, then, but give starbucks some credit.

But look at the good that ETHOS does. People needn't be so cynical about these things. This will directly benefit some of the world's bottom billion. Lets realize what a contribution this is and how this truly aligns with our corporate culture. I'm as critical of the company as anyone, but how is this NOT a good thing?

[Kate]

"RED is such a scam. In the first six months of the program, RED spent $100MM on advertising to turn around $18MM for the Global Fund. I wish this campaign would be based on charity rather than "do your normal thing, don't sacrifice, and feel good about yourself.""

The stores actually spend the money, rather than the Global Fund, which runs the (RED) Campaigns. I think (RED) is a good thing--though I don't imagine it adds up to 1.7 million per day. I would figure instead, something like this:
250 (RED) drinks per store each day =$12.50 per store each day times 7000 stores is $87,000 each day, for 30 days. So about a quarter million.

My issue with (RED) is the transparency. 5 cents doesn't sound like much, and it turns out, it's not. But, what's more is, perhaps Starbucks decides to put an upper limit on to its donation, or say, $500,000: They wouldn't have to say it outright (such is the case with Gap (RED)...)

[Hirayuki]

I don't drink sugared drinks/syrups, so I can't participate in Starbucks's RED campaign. Would it have killed them to offer to donate x amount for every drink, or every drink of a certain size, say? The sponsor can always put a ceiling on the amount to be donated, if they're worried about going broke over it.

[green_cup]

Frankly, this bothers me for a few reasons.

#1: As someone mentioned, RED is just a trendy way for someone to feel good about "donating" some money by not doing much of anything at all. Plus, there are FAR more effective methods of donating to causes than RED. It's like donating a few cents on each dollar goes to the charity when it goes through RED. I can't imagine why one wouldn't want to donate more intelligently with whatever donation dollars they have at their disposal.

#2: From a tax-savings standpoint, it's just dumb. I can see no way in deducting from my taxes five cents for each holiday beverage I purchased for tax returns. It's much easier (and effective) to write a check to a charity and write it off on my taxes. Plus, paperwork-wise, it's FAR more likely you'll pass an audit (if ever you were audited on your contributions) with a copy of a check than your Starbucks receipts. That goes for all RED participants (the GAP, etc)... If I can't write off the "donation," then it's not a donation I want to make. It'd be far more attractive just to lower the price of the beverage by five cents.

#3: Why on earth does Starbucks keep jabbing their investors with stuff like this? It's perfectly reasonable for them to donate a share of their sales when they're profitable, but in times like this when they're posting no profits, I cannot see why they insist on hurting their chance of profitability. It's like their free coffee giveaways... fine when they generate profit as a company, but when they cannot return value to their shareholders, then it's just a slap in the face. It's irresponsible, unethical and completely wrong. The shareholders (especially now) need to be as valued as the employees and customers and giving away shareholder value (even if it is to a charity) isn't showing gratitude.

[hd]

Just a quick correction on your math, Kate. You left out a zero which changes the total from a quarter million to 2.5 million.

250 (RED) drinks per store each day =$12.50
12.50 X 7000 tores = $87,000 each day,
$87,000 X 30 days = $2,610,000

Even if the total is half that much, it's still going to be over a million dollars which is nice, no matter how you slice it.

[green_cup]

And to add something else, I'm not even sure one could take it as a donation when buying something. It's not really you making the donation as much as it is Starbucks.

Essentially, what you're doing (I believe) is helping Starbucks lower their taxable amount by letting them donate money from the company directly. Seems a little scammy, really.

[Mystery]

Anyone hear about some "important' emergency conference call on Thursday?

[Jim C]

Yes, emergency conference call to figure out what stores to close, next.

[beantheredonethat]

I wish Starbucks would work on improving store sales and the bottom line - investors value that over feel-good marketing programs that were implemented for all the wrong reasons...

[Barista Joe]

I worked the day before Dec. 1st, and I was handing out those coupons like mad to get people to come. Literally nobody showed up/didn't care. Very sad.

-J

(RED) is not a charity. (RED) is an emergency. 4100 people die everyday in Africa and Starbucks becoming (RED) is going a long way to help stop that.

[Noodoggy]

"250 (RED) drinks per store each day =$12.50
12.50 X 7000 stores = $87,000 each day,
$87,000 X 30 days = $2,610,000"

couple of math problems...there are over 10,000 stores....and it's over 37 days.

and as the last poster said...4100 people are dying from AIDS everyday...and yet people are complaining about the amount starbucks is donating and whether it does any good.
Unless you have just raised several million dollars towards saving these 4100 people who are dying today, i suggest you go buy a beverage and actually do something. This is bigger than coffee. For years people have complained about STarbucks being big...well...this is Starbucks showing what being big is all about....
Ever heard of the magic of compound interest? It's the same principle...and instead of people bickering, something is being done...and you can say you helped save a lifve today... how often have you done THAT in your life so far?...
just my five cents

[ensenadajim]

Considering that the 5 cents is generated by a drink that costs at least $3, the nickle is a sham and public relations only.

As was stated above, there are more meaningful and better ways to contribute to Red.

j.

[spence]

Good Grief. I can't believe that people have the audacity to complain that Starbucks is giving massive amounts of money for Aids medicine. If Starbucks didn't give away the money, do you think they would lower the price of the drinks by 5 cents. Of course not. Therefore, they are truly giving the money to benefit Aids victims.
The complaining about the generous endeavor is just more proof that this site is attracting the negative people and perhaps why the positive people are leaving it.

[Gord]

Not to mention Starbucks has signed up with (RED) for 3 years. After the holiday beverages are done, another method, merchandise or drink will take their place.

Over the course of the entire 3 years, you are looking at millions of dollars this will contribute to the Global fund.

For anyone that complains that 5 cents isn't enough and that they would rather spend the 5 bucks the drink cost and donate directly to the fund... good, go actually do it instead of just saying you will. I would be more than happy if everyone who says this would do that, that would also be a lot of money... of course 99% of people who say they would rather skip Starbucks and donate directly are all talk and no action.

[Gord]

Weird... appears my post vanished.

Not to mention Starbucks has signed up with (RED) for 3 years. After the holiday beverages are done, another method, merchandise or drink will take their place.

Over the course of the entire 3 years, you are looking at millions of dollars this will contribute to the Global fund.

For anyone that complains that 5 cents isn't enough and that they would rather spend the 5 bucks the drink cost and donate directly to the fund... good, go actually do it instead of just saying you will. I would be more than happy if everyone who says this would do that, that would also be a lot of money... of course 99% of people who say they would rather skip Starbucks and donate directly are all talk and no action.

[beantheredonethat]

as a shareholder, starbucks does enough already in hundreds of disjointed, fragmented ways, to give back to society, to do csr. Some of the efforts are quite good and worthwhile.

But the last thing starbucks needs is yet another giving platform. they should fix current csr efforts, as well as the bottom line before launching yet another PR stunt.

[Mystery]

Jim C- Whoa! Serious! How many? Why the hell isn't this a thread

[Coffee Mistress]

Jim C, as in stores already listed or more?

[Mike]

I certainly don't condone Starbucks' charitable efforts. However, being realistic about it, I feel like Starbucks is much like our government -- always trying to play big brother to other countries while we ignore problems that are right in our back yard. Secondly, for as much as we're willing to give to charity, it seems like that money, or at least a portion of it, would be much better utilized in labor expenses and/or raises for our baristas, who are working their asses off for near minimum wage.
In relation to that, does anyone know what the "big news" is that's breaking on Thursday? All of the districts in our region have a conference call with the RDO in the morning, and from what I understand the other regions surrounding us do as well. When I asked my DM today all he could say is "I don't know, but it can't be good." I hope they don't start spouting about cutting more labor when we're giving hundreds of thousands to charity.

[green_cup]

Not to mention Starbucks has signed up with (RED) for 3 years. After the holiday beverages are done, another method, merchandise or drink will take their place.

Over the course of the entire 3 years, you are looking at millions of dollars this will contribute to the Global fund.

For anyone that complains that 5 cents isn't enough and that they would rather spend the 5 bucks the drink cost and donate directly to the fund... good, go actually do it instead of just saying you will. I would be more than happy if everyone who says this would do that, that would also be a lot of money... of course 99% of people who say they would rather skip Starbucks and donate directly are all talk and no action.

Posted by: Gord | December 02, 2008 at 03:07 PM

Well, until Starbucks turns a profit, thats millions of dollars that could be turned into profit -AND- be sent back to the shareholders. It's great that Starbucks wants to give the cash to a charity, but it shouldn't come from the company. If the employees want to donate five cents for each drink from their own personal paychecks, then that's great. That would be a true showing of how behind this "promotion" they really are. It, however, should not come from executive's pay and bonuses. That should be lowered to extremely low levels until the company is profitable again and only then if they wants to contribute to RED on the behalf of the customers and company should it be permissible.

Again, it's a slap in the face to give away free things or money to anyone until the shareholders are given something back (via dividends, etc) and the company is profitable.

[energybolt]

When did a conference call get mentioned this week!? More closures? Really?

[pumpkin loaf]

I too have been alerted to a conference call on thursday.

[newengland sm]

yea conference call 11:30 thurs morning to discuss "q1 business updates" but we were just told about it monday the email was quite ominous....any one with an inside on this?

[PhillySM]

Conference call 11am eastern time hosted by regional managers and district dms. Haven't heard anything about closing more stores but our email this morning said "to discuss the state of our business". Will let all know what is up after call on Thurs.

[Lilith]

I was told it would be about labor.

"some of the partners at my store are irritated by the promotion.

i believe his exact words are "There are more important things going on in America to spend money on. There are homeless shelters in town that are going to shut down after the holidays."

it feels kinda nice to be involved, but honestly i have to agree with him"

If you're irritated about things not happening in your community, maybe you should do a Make Your Mark.

[Really?]

Starbucks is still making profit. Q3 of FY08 was the first time in a long time that we posted a loss--and that was a fiscal quarter in which we paid loads in penalties to break leases, etc. Q4 posted a profit (albeit not as much profit as we wanted to see).

As for (red) and the $.05 for each holiday drink--those nickles add up, plain and simple. This is, to me, more than just a token gesture. And YES, there are needs here in the US, and YES, something should be done about it . . . that's why we have programs like Make Your Mark - - - volunteer with your partners at the shelter down the street, or do some other community service. Make a difference both through (red) and in your community.

Finally, I do believe that there will be other ways to participate in (red) beyond the holiday bevs (which was just the launch). I believe that everyone, including brewed coffee drinkers) will have an opportunity to participate (and I'm sure folks around here will find something to gripe about).

First--how much more labor can we cut around here?? If we want to keep customers, we'll need parters to serve them.

Secondly, (RED) doesn't just help fight AIDS, it also helps fight Malaria- an equally important cause

and Third- Can we just buy back the shares from our shareholders and become a private company again please? I am so sick and tired of the whining and complaining from the shareholders. And I am equally tired of the ridiculous amounts we have to "cut" to make ourselves look profitable *enough* to them.

I'm working for myself and my partners. I work damn hard. My store is extremely profitable.

And I don't give a rats ass about some shareholder getting rich.

On another note, $10 says the announcement on Thurs is that Howie is "stepping down to spend more time with the fam."

[Coffee Solider]

Thanks you NOODOGGY...you seem to be about the only partner on here today with a good sense of humanity in his/her body.....and by the way what is deal with the cynic green_cup who has recently appeared on here. He/she seems not to have a positive thought? I hope to God he's not a partner with his/her poor atitude towards this company. It't not partners like that one that I want helping to get us back on track!!

[EX-SM]

As far as RED goes, it was posted internally that for Winter Promo there will be a RED Starbucks card that will contribute every time that it is used. Customers will have a choice to buy that card and "give" every time they use it.

stats available her on the program.

http://red.starbucks.com/red/

* What is (RED) / (PRODUCT) RED?

(RED) is a business model created to raise awareness and money for the Global Fund by teaming up with the world's most iconic brands to produce (PRODUCT) RED branded products. A portion of profits from each (PRODUCT) RED product sold goes directly to the Global Fund to invest in African AIDS programs, with a focus on women and children.

* Is (RED) a new charity?

(RED) is not a charity. It's a business model designed to create awareness and a sustainable flow of money from the private sector into the Global Fund, to help eliminate AIDS in Africa. Consumers buy (PRODUCT) RED, and at no cost to them, money is sent directly to the Global Fund.

* Who is (RED)?

Bono and Bobby Shriver created (RED) to engage the private sector in the fight against AIDS in Africa. Our partners include: American Express (UK only), Converse, Gap, Emporio Armani, Dell, Windows, Apple and Hallmark. Discussions are ongoing with other potential partners.

* Why have you created (RED)?

To engage the private sector, its marketing prowess and funds in the fight against AIDS in Africa.

Private businesses contribute less than 1% of the Global Fund's resource needs. (RED) is designed to kick-start a steady flow of corporate money into the Global Fund and it has.
What is the relevance of the name (RED)?

(RED) is the color of emergency. 4,100 die every day and many others are fighting for their lives; this is an emergency.

* What is Bono's involvement?

Bono and Bobby Shriver created (RED) to engage the private sector in the fight against AIDS in Africa. After they set up DATA (Debt, AIDS, Trade, Africa) together in 2002, it became apparent that while DATA leveraged investment from the public sector to the Global Fund, a need remained for greater private sector funding.

* How does (RED) work?

Established brands partner with us and license the (PRODUCT) RED mark to create (PRODUCT) RED products and services. (PRODUCT) RED partners send a portion of the profits made on (PRODUCT) RED products directly to the Global Fund, to fight AIDS in Africa. The consumer does not pay extra for this. (RED) never handles this money – it is sent directly to the Global Fund.

A licensing fee for use of the (PRODUCT) RED mark is charged to manage and market the (RED) brand. This fee is paid by (PRODUCT) RED partners, and does not infringe on the amount of money they send to the Global Fund via sales of (PRODUCT) RED items.

[C to the B]

Green_cup -

I strongly suspect you will be visted by three ghosts at Midnight on Christmas Eve.

Maybe they will change your perspective.

[Noodoggy]

....one last comment for the day

re: shareholders and their angst about "giving away" money...

If you are a shareholder....learn about your business. Yes (RED) is about doing something good. But on the flip side...do you know where coffee comes from? Africa. A continent torn by war for many many years. A continent that has some of the best growing regions for coffee (it was discovered there). A continent that is being ravaged by a disease that is easily controllable. A person who has AIDS cannot work unless they have medication. If 1 out of 3 people has AIDS, there isnt much of a workforce. No workforce means no one to grow coffee. No coffee, means nothing to sell in stores. Nothing to sell in stores means nothing to put in shareholders pockets.

This is the beauty of (RED). It relies on a simple psychological concept that says people do things because other people do them. Yeah yeah...I hate it sometimes too...
BUT!
when you can do two things at once...sell your product and help someone...that's great.
when you do that plus add in the bonus of creating future growth and of course (what all shareholders want to see!) more coffee drinkers (i am being a little silly here lol)
Shareholders...stop reading the paper...
think critically for a moment...
Starbucks didnt get to where it is because Howard Shultz is a one time wonder.
The man is a smart business man. And thank god for humanity...he also has a heart and thinks longterm...
not shortterm...like newspaper writers lol
okay...any questions? just leave me a post and I'll try to answer it for you...

[SPORK]

PLEASE READ THIS NAYSAYERS, I am currently writing my Sociology Thesis on Project RED:

I asked my DM and NO 5 cents do NOT go to project Red for Partner Bevs....

It sickens me that project red exists in our society... the fact that we need to have something like this to raise money for charity is disgusting. HOWEVER, it is a business model, and it's the only way that people will end up donating, that is, by getting something material back and feeling like a good person. The Red Campaign represents everythign that is wrong with our society, but I applaud it for embracing this consumer-driven world and weilding its power for a greater good.

PLEASE don't tell me that I can "donate the five dollars I would've spent on a drink to the global AIDS fund". Thanks! Because I DO donate over 200 hours a year to HIV/AIDS awareness, not to mention money. But my regulars are not as charitable, so if I can get them to switch their white mocha twist to a mocha twist then great, maybe I can make a difference in someone's life (20 cents for a shot guys! That's just FOUR holiday beverages!!!!)

So yeah, what can I say? I would love for everyone to join hands, stop spending for a day and give that money to charity. BUT IT'S NOT GOING TO HAPPEN. Stop being NAIVE people! Project Red is a business model, if Starbucks, Converse, Apple, Motorola, American Express and Gap can show other enterprises that it makes sense to take a portion of sales and give it to charity, because we will buy a project RED item over a regular item that are the same price, then others will join project red, and others will join, and soon consumers will be given RED options with about anything. That's the point. Red isn't a charity, it's a business model. PLEASE distinguish between the two!

On a side note I believe it should be 10 cents, if we're willing to give that much to a personal mug then we should be willing to do it for Project Red.

I believe the call on Thursday will be the elimination of the ASM role.