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    Article Review 3

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    Johnny Page
    Moltner sued Starbucks after spilling hot tea on herself that she claimed was too hot and defectively packaged. She said the spill caused severe burns and other injuries. The court ruled in favor of Starbucks, recognizing double cupping as common practice to prevent burns. The article also previewed Starbucks upcoming earnings report and new product line, with analysts expecting a 7% rise in revenue from existing stores, indicating the company has recovered from recession declines.

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    Article Review 3

    Uploaded by

    Johnny Page
    78 views3 pages
    Moltner sued Starbucks after spilling hot tea on herself that she claimed was too hot and defectively packaged. She said the spill caused severe burns and other injuries. The court ruled in favor of Starbucks, recognizing double cupping as common practice to prevent burns. The article also previewed Starbucks upcoming earnings report and new product line, with analysts expecting a 7% rise in revenue from existing stores, indicating the company has recovered from recession declines.

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    Article review for 3 resent articles concerning starbucks

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    Moltner sued Starbucks after spilling hot tea on herself that she claimed was too hot and defectively packaged. She said the spill caused severe burns and other injuries. The court ruled in favor of Starbucks, recognizing double cupping as common practice to prevent burns. The article also previewed Starbucks upcoming earnings report and new product line, with analysts expecting a 7% rise in revenue from existing stores, indicating the company has recovered from recession declines.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    78 views3 pages

    Article Review 3

    Uploaded by

    Johnny Page
    Moltner sued Starbucks after spilling hot tea on herself that she claimed was too hot and defectively packaged. She said the spill caused severe burns and other injuries. The court ruled in favor of Starbucks, recognizing double cupping as common practice to prevent burns. The article also previewed Starbucks upcoming earnings report and new product line, with analysts expecting a 7% rise in revenue from existing stores, indicating the company has recovered from recession declines.

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    Download as docx, pdf, or txt
    of 3

    Starbucks

    Article Review
    By: Johnny Page
    The following article review focuses on three recent articles pertaining
    to Starbucks. The first article is a recap of the recent lawsuit brought against
    Starbucks in New York City. The second article is a preview of the earnings
    report for the fourth fiscal quarter that is expected to be released by the
    closing bell on Thursday. The third and final article
    A 76-year-old New York resident, Moltner, spilled a cup of hot tea,
    which she purchased from Starbucks, on herself. The spill caused Moltner to
    undergo multiple skin grafts. She spilled the hot tea when she tried removing
    the lid from a “Venti” sized cup. The spill burned her leg and part of her foot.
    During her hospital stay she suffered several more injuries including, bed
    sores and a herniated disc caused by a fall out of bed.
    Moltner accused Starbucks of serving tea that was too hot in a double
    cup- one cup placed inside another- that was defectively designed. She also
    claims that Starbucks should have warned her that the tea was so hot. The
    appeals court recognized “double cupping” as a common and acceptable way
    to prevent burns throughout the industry. Moltner’s lawyer, David
    Jaroslawicz said, "The other side presented an old lady knocking over her tea.
    The case was really about that Starbucks has a directive to employees that
    you should not double-cup because it changes the center of gravity and can
    cause the cup to tip over."
    This was not the first case brought against a restaurant concerning
    spilled drinks. In perhaps the most famous and best-known case, a jury in
    1994 ordered McDonald's Corporation to pay $2.86 million to Stella Liebeck,
    an Albuquerque, New Mexico, woman who said she scalded herself with the
    restaurant's coffee. The parties later settled.
    This case never really gained the momentum that many thought it
    would in the wake of the 1994 case. This lawsuit had many of the same
    characteristics that the McDonalds case had, however, it was the courts
    finding that Starbucks had no further responsibility to the customer.
    The second article is focusing on the earnings reports that are going to
    be released on Thursday of this week. Starbucks has been battling growing
    competition from fast-food chains such as McDonalds, whom now offer fancy
    coffee drinks. In this most recent quarter, Starbucks has tried to set itself
    apart from their competition by offering free Wi-Fi, which kicked off in July.
    The partnership with Yahoo gives Web surfers in stores exclusive content,
    such as free e-books and access to sites such as Wall Street Journal, which
    normally cost money. Starbucks also released a new product line called “Via”
    which offers coffee on the go. The coffee is freeze-dried so that all a user has
    to do is add hot water for an instant cup of coffee.
    Upon the closing bell on Thursday, a Starbucks representative is
    expected to discuss both the new product line and the effects of free Wi-Fi on
    the earnings. UBS analyst David Palmer now expects revenue at stores open
    at least a year to rise by 7 percent, up from his prior estimate of 6 percent.
    That's a key figure for the industry because it measures growth at existing
    locations.
    Investors are keeping a close eye on the corporation’s turnaround after
    the recession-induced drop in sales. This is the third quarter since Howard
    Shutz’s return to the company and all sings are pointing to a full recovery.

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