Starbucks Eyes Profit-Sharing Offset Cuts in Gov’t Spending
Starbucks Corp., the world’s largest coffee chain, on Tuesday said it is now eyeing profit-sharing with non-profit organizations to help offset the cuts by the US government in the funding for children and education.
The world’s largest coffee chain Starbucks Corp. is now eyeing profit-sharing with non-profit organizations to help offset the cuts by the US government in the funding for children and education.
The announcement came a day after Howard Schultz, Starbucks chief executive, revealed the company’s “Create Jobs for USA” program, which aims to provide affordable loans to small businesses, non-profit organizations, and commercial real estates.
Create Jobs for USA aims to provide affordable housing projects in distressed communities across the country.
Meanwhile, Starbucks said that its profit-sharing project will be piloted in two of its stores in Harlem, New York and the Crenshaw district in Los Angeles. The coffee giant hopes to expand its implementation in the coming months.
Under the program, Starbucks will give at least $100,000 to both beneficiaries in the first year to help create the much-needed revenue stream for the non-profit organizations that will be affected by the budget cuts.
Schultz, along with billion investor Warren Buffett and General Electric chief executive Jeffrey Immelt, has joined together to call for national and economic dialogue among government officials and the business groups to help in the recovery process.