Starbucks CEO ’embarrassed, ashamed’ by arrests in Philadelphia

Starbucks CEO Howard Schultz says in a new interview that he is “embarrassed” and “ashamed” after two African-American men were arrested by police while waiting for a friend at a Philadelphia-area location.

In an interview with Gayle King on “CBS This Morning,” Schultz says that the arrest of the two men, who had the police called on them while they were waiting for a third friend to arrive before placing their order, was “reprehensible.” 

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“I’m embarrassed, ashamed. I think what occurred was reprehensible at every single level,” Schultz says. “I think I take it very personally, as everyone in our company does, and we’re committed to making it right.”

Schultz says the company’s plans to close about 8,000 locations for implicit bias training is just the beginning of Starbucks’s efforts to make the issue right. The company was the subject of a social media boycott this week after Twitter users accused the employee who called the police of racism.

“The announcement we made yesterday about closing our stores, 8,000 stores closed, to do significant training with our people is just the beginning of what we will do to transform the way we do business and educate our people on unconscious bias,” he says.

“It will cost millions of dollars, but I’ve always viewed this and things like this as not an expense, but an investment in our people and our company,” he added. “We’re better than this.”

The company announced Tuesday that the manager of the Philadelphia location seen in the video has resigned while an internal investigation continues.

In a statement, Starbucks said this week the company will provide training to employees “designed to address implicit bias, promote conscious inclusion, prevent discrimination and ensure everyone inside a Starbucks store feels safe and welcome.”

The two men in the video were released by police after the incident, and not charged by Philadelphia’s district attorney.