Starbucks Korea Closes All Stores for Mandatory Training After Marketing Backlash

Starbucks Korea is set to close all of its stores nationwide on June 22 at 3 p.m. local time for mandatory staff training. This decision follows a significant drop in sales and public backlash stemming from a controversial marketing campaign.

The campaign, referred to as “Tank Day,” was launched on the anniversary of the May 18, 1980, Gwangju Uprising, a period when the military government used tanks to suppress pro-democracy demonstrations, resulting in numerous deaths. Critics argued that the campaign, which included promotional discounts for “Tank” tumbler sets and the slogan “Put it on the table with a sound of ‘Tak!'” was insensitive and mocked victims of the uprising. The phrase “Tak” also evoked memories of student activist Park Jong-cheol, who died in 1987 after being tortured.

As a result of the controversy, Starbucks Korea experienced a sales decline of over 26% in one week, with payment volumes dropping to 23.69 billion won ($15.81 million) between May 18 and the following Sunday, compared to 32.16 billion won in the previous week. The head of Starbucks Korea, Sohn Jeong-hyun, was dismissed, and Shinsegae Group Chairman Chung Yong-jin issued a public apology, taking responsibility for the incident.

The upcoming training sessions, scheduled to be led by academics, will focus on modern Korean history and social sensitivity, particularly concerning the 1980 Gwangju uprising. Executives and managers, including Shinsegae Group Chairman Chung Yong-jin, will also undergo separate training. Starbucks Korea plans to revise its internal approval processes, incorporating a social sensitivity checklist and cross-departmental reviews to prevent future marketing missteps.

This store closure will be the first time since Starbucks entered South Korea in 1999 that all locations have shut early for a corporate mandate. South Korea is Starbucks’ third-largest market globally, with over 2,000 outlets.

While industry data indicates a rebound in sales within three weeks of the controversy, with weekly payment volume reaching 24.21 billion won ($15.87 million) in the first week of June, spending remains below pre-backlash levels.