Starbucks CEO says people on social media misrepresented what the coffee chain stands for and led to stores being vandalized

• Starbucks' CEO addressed vandalism and "misrepresentation" of the brand in his annual letter.
• Starbucks faced accusations of supporting Hamas after a pro-Palestinian post from its worker union.

Starbucks CEO Laxman Narasimhan is calling out what he described as "misrepresentation" about what the company stands for amid tensions related to the Israel-Hamas war.

"While I am grateful for so much, I am concerned about the state of the world we live in," Narasimhan wrote in an end-of-the-year letter to employees. "There are conflicts in many parts. It has unleashed violence against the innocent, hate and weaponized speech, and lies — all of which we condemn. Cities worldwide — including North America — have seen escalating protests."

"Many of our stores have experienced incidents of vandalism. We see protesters influenced by misrepresentation on social media of what we stand for," he wrote. "We have worked with local authorities to ensure our partners and customers are safe. Nothing is more important. Our stance is clear. We stand for humanity."

The recent backlash against Starbucks began amid the Israel-Hamas war, which has led to tension and even lawsuits between the company and Starbucks Workers United, the union that represents some of its employees.

The union made pro-Palestine posts on social media in October, including one that said "Solidarity with Palestine!" At the time, Starbucks told Business Insider at the time it "strongly disagrees" with the union's posts.

For its part, the union, in a letter to Starbucks management, said the company was misrepresenting the issue.

"Starbucks has repeatedly blamed a tweet by Starbucks Workers United for creating negative publicity harming Starbucks and its workers," Lynne Fox, the president of the union, wrote to the Starbucks board in October. But she said the company's "relentless attempt to portray its employees' representative as a supporter of terrorism has elevated that tweet, mischaracterized the union's position, and put workers at risk."

Starbucks sued the union in federal court in Iowa, alleging trademark infringement and repetitional damage; the union also sued Starbucks in federal court in Pennsylvania, alleging defamation and asking for a judgement that would affirm its right to use Starbucks name. Both suits are still in the courts.

Meanwhile, some Israel supporters called a boycott of the chain over the union's pro-Palestine posts.

Starbucks, in its lawsuit, said that customers began to criticize Starbucks over the social-media posts, with some stores being vandalized.

In one instance, someone painted a swastika and Stars of David on a Rhode Island Starbucks's windows, according to the lawsuit.

Starbucks' response distancing itself from the union's pro-Palestine posts subsequently angered some pro-Palestine supporters, leading to additional calls for customers to boycott the brand.

In November, a Starbucks location in Spring, Texas, was vandalized, the Houston Chronicle reported. The words "free Palestine" and "boycott Starbucks" were spray-painted onto the side of the building, along with "Stop killing children."

"We are in a macroenvironment where speech is being weaponized, leading to misinformation driving the narrative across a number of topics that are of special importance to communities around the world. Starbucks is not immune to this misinformation as the company has seen first-hand the influence of misrepresented facts on the brand," a Starbucks source told Business Insider in a statement.

In his public letter, Narasimhan said that Starbucks has been working with law enforcement to ensure Starbucks workers and customers are safe in stores.

"Our stance is clear. We stand for humanity," Starbucks' CEO wrote in his end-of-year letter.

Any financial impact of the boycott calls isn't clear. The company's stock is down about 8% in the past month. Third-party data from Placer.ai indicates that stores saw a bump in foot traffic during recent holiday promotions, but that bump was smaller than it had been the previous year.

"Customer demand for us remains strong," Starbucks' CEO said during the company's November 2 earnings call, which covered the company's financial results ending in October 1. "We're not really seeing any change in the sentiment in our customer base at this time."

In his letter, Narasimhan said that Starbucks wants to give people a "place to come together, to connect and to find common ground." He also said he prays for peace during his daily meditation routine.