Howard Schultz, the former Starbucks CEO, appeared on CNBC this morning to discuss the Schultz Family Foundation’s role in launching a new $4 million fund to provide cash payments to out-of-work restaurant workers in the Seattle region.
As part of the conversation, he was asked for his thoughts about the fate of the “third place” in the aftermath of the COVID-19 crisis. This is the concept of a community gathering spot, away from home and work, that Schultz championed as he built Starbucks into a global coffee giant. Here’s what he said.
I think it’s clear to me that when we get through this, and we will, the pattern recognition of what we once had for consumer behavior will be changed. However, I think people will be longing for human connection. People will be longing for a sense of community and a third place, and I think Starbucks will benefit from that opportunity. But it will take time for people to feel comfortable again. But we are all longing again, I think, for the people that we see every day at work for our friends and family. And I think that is going to be an opportunity, when we get through this, but I think it’s true, it will take some time for people to feel comfortable again, to go back to the pattern they once had.
The question speaks to the larger issue of whether our habits will permanently change after stay-at-home orders are lifted, accelerating the adoption of technology over in-person connection. Similar questions are being asked about the adoption of virtual gatherings, webcasts and events, amid the rise of online conferencing and collaboration technology.
Starbucks has closed stores across the U.S. and Canada, offering drive-through and delivery service only. Schultz, who explored the possibility of running for president as an independent last year, is no longer involved in day-to-day operations at the company. The Seattle coffee giant is run by CEO Kevin Johnson, the former Microsoft and Juniper Networks executive.
