Hearts & Minds: How to reverse out of a popular customer offer

Starbucks’ decision to reverse allowing anyone to use its toilets without making a purchase at branches in North America has attracted predictable headlines. ‘Buy something or leave, Starbucks says’, ‘Starbucks reverses six-year rule – and it’s going to cost you’, ‘Starbucks announces major reversal in policy that will force customers to pay for simple pleasure’.

Social media also kicked in. ‘Brand damage is permanent’ , ‘Workers and customers are getting nickeled and dimed by company that pays its celebrity CEO $57,000 an hour’, Starbucks is exacerbating ‘the growing class divide in America’s ability to foster social connection and community’.

This last poster had the grace to say, ‘it’s a defensible policy’. Which of course, it is. In the UK, Waitrose experienced similar when it stopped providing free coffee to loyalty card members – the supermarket ceased supplying disposable cups, in future they could only have a coffee if they brought their own cup.

There have been numerous other instances: withdrawing from supporting charity events and projects; ending discounts for some, disadvantaged customers; the list goes on. Every time without fail, the company gets it in the neck. They’re portrayed as heard-hearted, money-grabbing, uncaring. The fact they took the initiative in the first place and it’s cost them is ignored.

What can be drawn from this? Don’t go there in the first place is the obvious answer –not if there is any prospect that you might withdraw. That is easier said than done, of course, and what felt right then may not today – market conditions could have changed, finances might be tighter and let us face it, what began as a generous gesture is now being abused and causing staff no end of problems.

End it gently and gracefully. This is not a moment for brandishing the management big stick and using words straight out of business school. Explain in simple, easily understood terms that you’re sorry but you must discontinue. Be warm and nice. If the policy was being exploited, don’t say so. All that does is to invite the media to find disappointed consumers who did not abuse the measure, to run their pictures and heartbroken quotes, and then you’re in a full-scale reputational crisis.

Accept you’re going to be criticised by someone somewhere. But the more reasonably minded will read between the lines. Most importantly, your stakeholders will understand. The storm will pass, the damage will not be permanent - despite what social media claims.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.