Lights out at Starbucks Korea: 2,000 stores close for history lessons after ‘Tank Day’ fiasco

SEOUL, June 22 — Lights off. Doors closed. Coffee lovers across South Korea were left craving their fix today as more than 2,000 Starbucks shops shut for staff training after a marketing fiasco.

Starbucks Korea — the coffee giant’s third-largest market after the United States and China — was embroiled in a major controversy last month over a promotion that evoked painful memories of a 1980 government crackdown on pro-democracy activists.

The day of the reusable cup promotion — May 18 — coincided with the 46th anniversary of the Gwangju uprising in which 165 civilians were killed when tanks and troops were deployed, according to the official toll.

Many believe the number is much higher.

Starbucks Korea christened the occasion “Tank Day” to market its large tumblers, but its campaign was slammed as callous.

The controversy led to the dismissal of Starbucks Korea’s CEO and prompted a public apology from the chairman of Shinsegae Group, which operates the chain under license from Starbucks US headquarters.

To contain the backlash, the South Korean chain shut stores nationwide from 3pm (0600 GMT) today for staff to attend three hours of “historical and social awareness” training.

The sessions “focused on historical and social awareness” and a “commitment to the Starbucks mission and values”, the company said.

Stores were to remain closed for the rest of the day, for which staff received their full pay.

Many coffee lovers — unaware of the early closure — were turned away at one outlet in central Seoul, where the blinds were drawn as staff watched an educational video inside.

Yoon Soo-nyung, a 26-year-old banker, was not impressed with the “over-the-top” measure.

“I suspect it is more of a performative, box-ticking gesture,” he told AFP before heading off to find another coffee shop nearby.

‘Lax’ system

Cho Seong-ha, a 45-year-old office worker, agreed the move appeared “showy”.

“The problem stemmed from a mistake by the marketing team. I am clueless as to why employees making coffee in the field have to undergo this training,” she said.

Some supported the measure.

Jang Yu-ra, an 18-year-old passerby, said the chain’s decision showed it “clearly recognised the seriousness and responded accordingly”.

“I think it is a good direction,” she said.

Shinsegae had identified a series of negligent acts leading up to the promotion, including officials signing off without checking the design file.

The controversy sparked protests in Seoul and Gwangju and led to a “sharp decline in sales” in the early days of the scandal, according to the operator.

Yoon, the banker, said he could not understand how a company as big as Starbucks Korea could have allowed this to happen.

“Something like this should have been handled through an organisational system — all decisions go through a process, after all — but it seemed so poorly managed,” he said.

“It just made me wonder how such a large corporation could be that lax.”

Shinsegae chairman Chung Yong-jin and other senior executives will sit for the same history training tomorrow. — AFP