Starbucks Korea to temporarily shut all stores for history lesson after bungled coffee promotion

Starbucks Korea will simultaneously close all its stores for a mandatory history lesson, after a disastrous promotion that evoked memories of a pro-democracy massacre sparked public and political backlash.

More than 2,000 stores will temporarily close at 3pm on 22 June, the company said, so staff can watch recorded lectures on modern Korean history and engage in “social sensitivity” training. The half-day closures will cost Starbucks an estimated 2.1bn won ($1.4m) in lost sales, according to data firm IGAWorks.

The measures follow a public relations crisis triggered when Starbucks Korea ran a discount promotion for its “Tank” tumbler series on 18 May, the anniversary of a 1980 massacre in Gwangju. The promotion led to store boycotts, customers smashing Starbucks mug and tumblers and government ministries cutting ties with the chain.

Chung Yong-jin, the billionaire chair of Shinsegae Group, which operates Starbucks Korea under licence from its US parent company, will take the same training on 24 June alongside other executives.

The curriculum covers major events in contemporary Korean history and how companies should account for historical and social sensitivities in their marketing decisions.

Shinsegae said the shutdown was intended to demonstrate the seriousness with which it viewed the incident and to prevent a repeat of similar controversies. The only exclusion to the shuttering will be a handful of outlets at airports, a company spokesperson said.

Payment volumes, which plunged 26% in the week after the controversy, have shown signs of partial recovery, rising 12.8% in the first week of June, according to market data, but they remain about 25% below pre-controversy levels.

The Gwangju massacre is a painful memory for many. Over 10 violent days, paratroopers crushed pro-democracy protests against military strongman Chun Doo-hwan. Victims’ groups say hundreds were killed.

Starbucks branded the date of its promotion “Tank Day”. It also featured the slogan “thwack on the desk”, evoking a notorious police explanation for the 1987 torture death of student activist Park Jong-chul. Authorities falsely claimed he had died after an officer “hit the desk with a thwack” during questioning.