It’s no secret to the people that know me that I love coffee - black, strong coffee. I also love coffee shops - these days the quiet, out of the way ones, where I can sit and think, read and write. I could rattle off a few favorite in every town I’ve spent more than a few days in. But that list would get long quickly.
Starbucks used to be on that list. Honestly, I still frequent Starbucks when I’m on the go. I know — coffee purists, hate me if you must — but I do like their dark roast. However, they are no longer on the list of places I go to sit and stay awhile, workout a draft for an article or read a chapter of a good book. But it used to be, and for very good reason.
Starbucks built enormous brand power by saying, in effect:
You are not just buying coffee.
You are entering a human place.
Howard Schultz’s mythology of Starbucks was never simply caffeine. It was the coffeehouse as civic space: the “third place” between home and work, a welcoming environment of “community and human connection.” Starbucks’ own company history says Schultz elevated that concept as central to the brand. And as recently as 2025, Schultz was still describing Starbucks as “steeped in humanity” and arguing that the “third place” is not something the company needs to reinvent, but something it essentially is. I’m not so sure about that, but I get why he wants to believe that.
Recently I was listening to a podcast on “The Rise and Fall of Starbucks by Michael Girdley - he as a YouTube channel that breaks down company stories into leadership lessons and business insights. I’m hooked on them.
As Girdley wanders through Starbucks’ journey he mentions the traps or strategy mistakes that they made along the way - and some of them caught my attention from a human consciousness and liberation lens perspective. What I heard between the lines was a lesson about belonging and our collective journey.
But first for context, here’s Girdley’s basic summary:
WHAT THEY NAILED EARLY: Built the first mainstream coffee culture for middle America, turning tea-drinking masses into latte enthusiasts. Grew from 6 stores to 15,000 worldwide by 2007. Created the ‘third place’ — warm chairs, free Wi-Fi, a welcoming destination beyond home and work.
WHAT CHANGED
Schultz doubled down on mobile ordering and drive-throughs — 70% of transactions now skip the ‘third place’ entirely. Got dragged into politics, homeless crises, and union battles. Meanwhile, stores became mosh pits of mobile orders with 15-30 minute wait time.
The result? Revenue down 6%, transactions down 10%, profits down 47%. Six straight quarters of declining same-store sales. New CEO Niccol cutting 1,000 corporate jobs and bringing back ceramic mugs. Stock still at 2012 levels. Turnaround uncertain.
That is Girdley’s business read. And much of it makes sense. I’m not here to pretend that I am a better business analyst than Girdley - but I want to highlight something that stuck out at me. He rightly mentions the shift to focus on mobile orders, drive-throughs and apps - all which took away from the feeling of the “Third Place.” - but he also mentions that the CEO “got political” and in his words “alienated half the customers.”
But I began to wonder if that was a strategic mistake or the inevitable outcome of their own conscious evolution?
You see, Starbucks did something that many companies only pretend to do: it put a moral idea at the center of commerce.
Once a company teaches people to experience themselves as human beings rather than merely consumers, it should not be shocked when those same people begin making human demands. Nor should we.
Schultz’s early employee philosophy came from a wounded working-class memory. His father had been injured and discarded by a system with no real safety net. So Schultz wanted Starbucks to be different. Harvard Business School notes that Schultz’s plan to offer part-time workers stock options and health benefits was unusual for retail and helped Starbucks retain employees. Starbucks later described its own model as “balancing profitability and social conscience,” including healthcare, stock ownership, and tuition benefits even for some part-time employees.
That is not insignificant! Schultz really did advance a more humane corporate imagination than much of retail America. He understood that a business is not only a machine for extraction, but it is also a social environment where dignity is either protected or degraded.
But here is where the conflict begins.
Starbucks called employees “partners.” It gave them stock. It offered benefits. It invited customers to linger. It leaned into progressive public symbolism. (What Girdley calls “divisive politics”) It tried to create a place where people felt seen, and it tried to be a corporation that stuck up for the basic humanity of its consumers and employees.
Over time, the workers began saying:
If we are partners, why don’t we have power?
If this is a place of belonging, why are we understaffed?
If the company believes in dignity, why do we need to beg for stable schedules, fair pay, and safe conditions?
Starbucks Workers United says the union movement began in Buffalo in 2021 around issues including short staffing, unpredictable scheduling, low wages, harassment, and a gap between Starbucks’ public values and baristas’ lived experience.
And there it is: The gap between the company’s stated values and baristas’ lived experiences.
The union drive was not a rejection of Starbucks’ moral language. In many ways, it was the workers taking that language seriously.
You see, the company created moral expectations it could not fully contain.
This is the part that fascinates me most.
A purely transactional company can often get away with transactional labor relations. Nobody expects Walmart, McDonald’s, or Amazon to be a sanctuary of belonging. People may demand better treatment, but the moral betrayal feels different, because it’s baked into the cake from the beginning. In other words, you know what you’re signing up for from the beginning.
Starbucks, however, trained both customers and employees to expect something more.
It said: this is not just a company, but a community.
It said: our employees are partners, who we work with to follow their “North Star”
It said: we care about race, inclusion, healthcare, education, belonging, public life.
It said: human connection is our business model.
Fine. But human connection is dangerous to hierarchy.
Because when people gather, they talk. When they talk, they compare experiences.
When they compare experiences, they discover patterns. When they discover patterns, they stop blaming themselves.
When they stop blaming themselves, they organize.
That is the natural social consequence of creating a “third place.” You cannot invite people into belonging and then be surprised when belonging becomes solidarity.
The anti-woke read of Starbucks says something like: “They got political, alienated normal people, and lost their way.” There is a piece of truth buried inside that critique, but it is badly framed.
The problem was not that Starbucks cared about social issues. The problem was that Starbucks increasingly tried to manage social meaning as brand identity while workers and customers were experiencing social conflict as lived reality.
Take the 2015 “Race Together” campaign. Starbucks tried to encourage conversations about race by having baristas write “Race Together” on cups. The campaign was heavily criticized, because the execution placed an enormous moral burden on low-wage workers in a fast-paced retail environment. Coverage at the time noted criticism that Starbucks had scaled up internal employee forums into a public-facing campaign without adequately thinking through the optics and power dynamics.
That is the pattern.
Corporate progressivism often wants the emotional glow of justice without the structural cost of justice. (And that mirrors exactly the conflict of America I’ve been talking about in my Emerson-Baldwin Series - Can the Soul Be Trusted?)
It wants the brand value of belonging without the labor democracy that belonging implies.
It wants to say “partner” without fully sharing power.
It wants to say “community” while optimizing speed, throughput, mobile ordering, labor costs, and shareholder expectations.
Eventually, the gap becomes too visible to ignore.
The third place became a contested place.
The 2018 open-door policy is another key moment. After the arrest of two Black men at a Philadelphia Starbucks, the company adopted a broad “Third Place Policy” allowing people to use Starbucks spaces, including restrooms and cafés, regardless of whether they made a purchase. That was a moral and symbolic move: Starbucks wanted to say, “We are open. We are welcoming. We are not going to criminalize presence.”
But that also meant store workers were placed on the front line of America’s unresolved crises: homelessness, race, policing, mental health, addiction, public bathrooms, urban disorder, and the collapse of shared civic infrastructure.
This is where the “third place” ideal gets brutally tested.
A third place sounds beautiful when it means warm lighting, jazz, comfortable chairs, and conversation and paying customers.
It becomes much harder when the coffee shop becomes one of the few remaining semi-public places in a privatized society.
Starbucks tried to be a civic commons inside a profit-maximizing corporation. That is a very unstable arrangement!
A real commons requires shared responsibility, public investment, democratic norms, and care infrastructure. A Starbucks store has baristas, shift leads, labor metrics, customer complaints, mobile orders, and a manager trying to hit numbers.
So the company invited society in, but the workers had to manage what society brought with it.
The spiritual lesson: Consciousness Creates Consequences.
From a New Thought / liberation consciousness lens, this is a near-perfect case study. (which is why I’m spending so much time researching and writing about it.)
Starbucks’ founding consciousness under Schultz was not merely “sell coffee.” It was something closer to:
Create a place where people feel seen, welcomed, dignified, and connected.
That consciousness shaped the physical environment. Chairs. Lighting. Names on cups. Language of “partners.” Benefits. Public gestures around race and inclusion. The company’s inner idea became an outer form.
But consciousness does not stop at aesthetics. (Everyone read that line again)
If the consciousness is belonging, then eventually the question becomes: belonging on whose terms?
If the consciousness is partnership, the question becomes: partnership with what power?
If the consciousness is humanity, the question becomes: whose humanity gets protected when profits are pressured?
It’s important to understand that consciousness does not only create private emotional states. It creates norms, systems, habits, permissions, and expectations. Starbucks created a belonging-based brand. Then workers used that moral imagination to ask for belonging-based labor conditions.
That is not hypocrisy by the workers. That is coherence. It is the diverse parts of a system seeking alignment, because the ethos of the system pointed them in that direction!
The business lesson: values are liabilities unless they become structures.
This is the hard truth for any values-driven organization, including churches and spiritual communities.
The more morally elevated your language is, the more accountable you become to it.
If you say “everyone belongs,” people will eventually ask about your board, your budget, your bathrooms, your pay practices, your conflict culture, your accessibility, your racial dynamics, your theology, and your actual distribution of power.
If you say “we are a family,” workers will ask why family members cannot afford rent.
If you say “partners,” workers will ask why decisions are unilateral.
If you say “third place,” the public will ask whether the space is truly public or only public-looking.
If you say “world that works for everyone,” people will ask whether “everyone” includes those whose needs disrupt the comfort of donors, shareholders, clergy, managers, or longtime insiders.
The more morally elevated your language is, the more accountable you become to it.
That is the danger of sacred language. It summons reality.
Starbucks did not fail because it had values.
It got into trouble because its values became more expensive than its operating model wanted to pay for. That is the whole American contradiction in miniature.
We want community without obligation.
We want diversity without discomfort.
We want belonging without redistribution.
We want moral branding without moral accountability.
We want workers to feel like partners until they start acting like partners.
And once they do, the company suddenly remembers that it is not a community after all. It is a corporation.
That is the point of betrayal.
No matter how humane a company’s motto, mission, or values may be, the test always comes when those values collide with profit, efficiency, shareholder expectation, scale, and control. It is one thing to speak of dignity when the chairs are comfortable, the stores are growing, the brand is beloved, and the margins are healthy. It is another thing to protect dignity when stores are understaffed, mobile orders are piling up, public bathrooms have become a flashpoint in America’s civic collapse, and workers begin asking whether partnership means anything more than a word printed in the employee handbook.
Bottom line:
Starbucks invited people to experience dignity inside capitalism, and then discovered that capitalism is often willing to sell dignity long before it is willing to share power.
That doesn’t mean that conscious capitalism failed. But the Starbucks journey names something important for all of us to tune into. Business is not morally neutral. Commerce shapes culture. Work shapes human beings. Supply chains, wages, schedules, benefits, leadership practices, customer relationships, environmental choices, and community presence all become part of the moral ecology of a society. A business is never “just a business.” It is one of the ways a culture teaches people what matters.
In that sense, Starbucks really did practice a version of conscious capitalism before the phrase became fashionable. It tried to say that coffee could be more than a commodity, that employees could be more than labor costs, that customers could be more than transactions, and that a store could be more than a point of sale.
It also reveals the limit of conscious capitalism when consciousness remains primarily aspirational, symbolic, or managerial. A company can be conscious enough to speak the language of humanity and still not be conscious enough to share power. It can be conscious enough to offer belonging as an experience and still not be conscious enough to make belonging structural. It can be conscious enough to recognize the dignity of workers and still not be conscious enough to welcome their collective voice.
That is the harder lesson, not just for the marketplace, but for every place.
Conscious capitalism cannot simply mean kinder branding, warmer spaces, better mission statements, or CEOs with more emotionally compelling origin stories. It has to mean that the consciousness of the company shows up in the actual distribution of power, risk, voice, reward, and responsibility.
Otherwise, consciousness becomes aesthetic. It becomes a beautifully designed contradiction.
And this is why Starbucks is a cautionary tale for every values-driven organization, every church, every nonprofit, every spiritual community, every socially conscious brand, and every leader who wants the glow of moral language without the disruption of moral accountability.
If you say people belong, they will eventually ask what belonging costs.
If you say people matter, they will eventually ask where they matter in the budget.
If you say workers are partners, they will eventually ask where partnership lives in the decision-making structure.
If you say you care about justice, they will eventually ask what happens when justice interrupts convenience.
If you say you are building a world that works for everyone, they will eventually ask whether “everyone” includes the people whose needs complicate the comfort of the system.
That my friends, is not a failure of values. That is values doing their work.
The real failure comes when an institution speaks a value clearly enough to awaken people, but not courageously enough to follow where that awakening leads.
And maybe that is also the invitation for all of us here.
Because I do not think the answer is to sneer at every attempt to humanize business. We need more humane businesses, not fewer. We need leaders who understand that profit is not the only measure of value. We need workplaces that care about human beings. We need gathering places. We need companies willing to ask what they are creating, promoting, and allowing in the world.
But we also need to wake up to what consciousness requires of us.
Consciousness is not proven by the beauty of our language. It is proven by the courage of our structures.
It is proven by what we protect under pressure, by who gets a voice, and by whether our stated values survive contact with money, conflict, inconvenience, and power.
This is true for Starbucks. It is true for conscious capitalism. It is true for churches and spiritual communities. It is true for America.
It is true for every institution that dares to speak the language of belonging.
Because belonging, once awakened, does not remain politely seated in the corner.
It asks for embodiment.
It asks for repair.
It asks for justice.
It asks for power.
And that may be the thing our institutions fear most.
Not that people will stop believing in their values.
But that people will believe them deeply enough to demand that they become real.
Where have I experienced a “third place” — a space beyond home and work where I felt welcomed, known, or restored?
What made that place feel human? Was it the design, the people, the pace, the values, the hospitality, or something deeper?
When a company uses words like “community,” “belonging,” “partner,” or “family,” what responsibilities should come with that language?
Where do I see a gap between stated values and lived experience in organizations I participate in?
What does my spending, working, investing, or leadership help create, promote, or allow?
Do I want businesses to be morally conscious only when it improves the customer experience, or also when it requires sharing power with workers?
What would it mean for belonging to become structural, not just emotional?
In my own workplace, church, nonprofit, or community, where have we used beautiful language without building the structures to support it?
What value do I claim that has not yet become a practice, policy, habit, or shared commitment?
What would I have to change if I took my own values as seriously as I expect institutions to take theirs?
The Great Good Place by Ray Oldenburg
The classic text on “third places.” Essential for understanding why coffee shops, pubs, barber shops, libraries, and informal gathering spaces matter for civic life.Conscious Capitalism by John Mackey and Raj Sisodia
The central book in the conscious capitalism movement. Worth reading, especially alongside more critical books, because it names the aspiration: business as a force for human flourishing, not just profit.The Sabbath by Abraham Joshua Heschel
Not a business book, but deeply relevant. Heschel helps us remember that human beings are not machines for production and consumption.The Art of Gathering by Priya Parker
Excellent for thinking about what makes a space meaningful, intentional, and human — beyond simply putting people in the same room.Let My People Go Surfing by Yvon Chouinard
A business memoir from Patagonia’s founder that explores values-driven business, environmental responsibility, and the tension between mission and market.Rev. Dr. David Alexander D.D., is a public theologian and spiritual writer exploring the intersection of spirituality, justice, and moral imagination in public life. Bringing 20 plus years of pulpit ministry with Centers for Spiritual Living, into everyday life and the call for a better world. He is the author of Freedom from Discord: The Promise of New Thought Liberation Theology and the visionary behind Recovery from the Lie of Whiteness. David also writes the monthly column Philosophy in Action for Science of Mind magazine. Visit www.revdavidalexander.com to learn more.
This is my full time work and primary source of income. Thank you for sharing your good with me. Together, we can demonstrate that abundance is the nature of reality.

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