now to discuss the incident and how the company is handling it is starbucks executive chairman howard schultzs an interview that you will see only on "cbs this morning." howard, we really appreciate you taking the time to join us this morning. >> thank you, gayle. >> reporter: listen, we have all heard the phrase driving while black, shopping while black, and now, howard, there's a hashtag that says starbucks while black. you see and you hear that and you think what? >> well, i'm embarrassed, ashamed. i think what occurred was reprehensible at every single level. i think i take it very personally as everyone in our company does, and we're committed to making it right. the announcement we made yesterday about closing our stores, 8,000 stores closed, to do significant training with our people is just the beginning of what we will do to transform the way we do business and educate our people on unconscious bias. >> and it will cost you millions of dollars too. >> it will cost millions of dollars, but i've always viewed this and things like this as not an expense but an investment in our people a

stores for the afternoon on may 29th chairman and founder howard shul schultz was on "cbs this morninghere's no doubt in my mind the reason they were called because they were african-american and i think i'm embarrassed by that i'm ashamed of that. that's not who starbucks is. that's not who we have been. that's not who we're going to be. >> he also said this is just the beginning the closure of the stores for the day to train management. >> and this is one the stock holds up well. but this is one of those events you would need to have an impact on their business. i don't think it is. you would see the stock down now people looking for 2% in the u.s. i'm more concerned about china they're trying to do everything right in the face of something very bad that went wrong >>> you might have heard lloyd blankfein. the move to consumer lending willfred frost in chicago where he did the interview nice work this morning. >> good morning. thank you very much. we heard from the chairman and ceo of goldman sachs that he felt the u.s. economy looks, quote "awfully good" that a broad trade war would

howard schultz can do whatever he wants. but there are a lot of people making a lot of money off of inherent racial bias training and other such training sessions. it's a big business. >> racial separatists are doing everything they can to exploit everything that they find. this is an example of the emperor's new clothes. we don't have to have real conscious misbehavior. we have unconscious bias. we have implicit bias. i want to make news tonight. our organization this week is going to be contacting the eeoc and the department of justice and we're going to ask them to see to it that any employer that is going to punish, penalize or in any way interfere with the right of their employees to operate without detecting whether or not they have some unconscious bias will be found in violation of title vii. this absolutely must not be allowed to occur. and it is not just a little overstep. this is dangerous and that's why we have civil rights laws to stop this kind of behavior. >> laura: jamillah? >> shockingly, i think horace make

go ahead. >> howard schultz, get out your checkbook because what this manager did was follow companytheir pio, spokesperson, when a noncustomer comes in using their facility, as these two men dead, the bathroom, they are to be asked to leave, if they do not cooperate, do not leave, law enforcement is to be contacted. that is exactly what she did. law enforcement came, they asked me is meant to leave three times before they arrested those two men for trespassing. this woman now has been tarred and feathered as a racist by howard schultz with no evidence that ray said anything to do with it. she was fired. you are correct. she is a great defamation lawsuit. wrongful termination lawsuit. and worse than that, laura, what message is starbucks sending to employees? if you suspect something is going wrong, you better not call 911 or else he will be tarred and feathered as a racist and you will be fired. it is a horrible mess. that woman, i would take her lawsuit in a heartbeat. >> laura: see something, don't say something. [laughs] here is what dante robinson said on "good morning america."

starbucks executive chairman howard schultz says he is "embarrassed" by the recent accusations of racialafes. he told cbs news "i think what occurred was reprehensible at every single level." starbucks is closing us stores on 29 may for company—wide "racial bias training" after two black men were arrested for trespassing at a philadelphia branch last week. the uk government has officially confirmed that a franco—dutch firm gemalto will make the post—brexit blue passports. earlier, uk rival de la rue said it had abandoned its plan to appeal against the decision. its boss martin sutherland told the bbc he remained "surprised and disappointed" by the decision. but the uk passport office said the process had been rigorous and fair. that is your business briefing. see you ina that is your business briefing. see you in a moment. now, the tv and radio presenter well—known to many of us here in the uk, dale winton, has died at the age of 62. he rose to fame fronting the game—show, supermarket sweep, during the 1990s and went on to present pets win prizes and the national lottery. his agent said

howard schultz gave me a tour. >> we want this to be interactive and fun. >> visitors will also learncoffee beans are called cherries when they're still on the vine. >> there is two beans. don't be afraid. taste it. >> sweet like honey. >> yeah, tart. sweet. >> it is the story of coffee, from seed to cup. >> this is going to become a major tourist attraction. that's what i think. >> but schultz says he wasn't thinking tourism when starbuck's bought the working coffee farm. >> what i really was dreaming about, could we find a place in which we could create sustainable coffee practices and elevate the industry as a result of what we were frying to do? >> the research done here and at eight other farmer training centers around the world, is part of the company's effort to help sustain a crop that is particularly vulnerable to climate change. >> starbuck's employee carl rodriguez is assisting farmers like herbert chicone in the battle as scourge known as rust. >> reporter: and starbuck's asks for nothing in return. we are in costa rica, you are greg ethiopian coffee? >> new variety. >> he

this woman now has been tarred and feathered as a racist by howard schultz. was fired and you're correct she has a great deaf nation lawsuit and worse than that, laura, what message has starbucks sent to employees? if you suspect something is going down or going wrong, you better not call 911. it's a horrible mess. but i would take her lawsuit in a heart beat. >> laura: see something, don't say something. here's what donte robinson said on "good morning america. " he was at the starbucks. >> the police asked you to leave and you didn't. what do you say to people? >> i understand rules are rules but what is right is right and what is wrong. >> laura: i'm not following. i mean, starbucks does have this policy, david d. and what does an employee at starbucks do? i mean, you are in a difficult position. if you think -- the policy is you have to buy something otherwise we can all use starbucks as an office and sit there all day on our laptops but it is a business and they do have seats for paying customers. is that now not allowed but we cannot enforce that rule?

howard schultz was one of the few corporate leaders to really get ahead of the curve in terms of making social issues and addressing them a core part of how starbucks was run. and now here we are in 200018. this is a rough one. what's your take. >> starbucks actually has a diverse board. i believe our research showed 47% of their baristas are actually people of color. but they won't share -- we need to talk about this -- they won't release their information as to how many of their managers are african-american, people of color. how many licensees -- because it is not a franchise. >> that's a great point. >> how many licensees are african-american or people of color. we need to know that. the training is necessary and is good. but it goes to show you, we still have a very, very long way to go. and to call the police, as we just heard, 911, most people go in starbucks and don't buy anything. at least not even commensurate to the time. i know folks take laptops go in starbucks and stay eight hours a day. they not drinking eight hours of coffee. so this training is absolutely necessary. >>

. >> reporter: on cbs, company chairman howard schultz acknowledged that bias was at the root of theause they were african-american. i think -- i'm embarrassed by that, i'm ashamed of that. >> reporter: starbucks is taking a fairly unprecedented step, announcing that on may 29th, it will close all of its stores for an afternoon of anti-discrimination training. >> just the beginning of what we will do to transform the way we do business. >> it's really impossible to train people not to be racist or to get rid of implicit bias in one day, one week, or one year. >> reporter: while today philadelphia commissioner richard ross was forced to walk back that statement he released on saturday. >> these officers did absolutely nothing wrong. >> reporter: ross says reform is now under way. for many people of color, while this incident may be maddening, it's not surprising. >> it's like you kick me off for no reason? >> reporter: today a new jersey l.a. fitness apologized after three employees wrongly accused shyrod oates, a black man, of working out without paying and called police. l.a. fitnes

appearing on cbs this morning starbucks founder howard schultz said he met with the manager who made that call. she's no longer with the company but he says is remorseful about how things worked out. schultz told cbs' gayle king he thinks she will meet with the men. >> i think this is a unique opportunity for her and the two gentlemen to sit down and potentially have some kind of reconciliation. >> reporter: starbucks plans to close 8,000 locations may 29th for companywide racial bias training, a move that could cost millions in operating losses. >> i think it night just be a pr move -- might just be a pr move because starbucks is a really big company. >> i think it's a good idea. >> reporter: you believe him? >> i do believe him. >> this is not going to be a one-day event where we're going to do something and leave. we're going to stay with this. it's going to be significant and endure and will transform the way we do business. >> reporter: lost in the discussion so far is the restrained way the two handcuffed men behaved. schultz noted they were passive in the face of something tha

ahead on "cbs this morning" gayle king talks with starbucks founder and executive chairman howard schultz about the incident and how the fcompany i handling it. >>> at bill cosby's trial, the jury could hear testimony from him. the judge allowed graphic details from the prosecution from a lawsuit over ten years ago. yesterday cosby's testimony describing a sexual encounter of andrea constand was read. the deposition was also include in his first trial. that ended in a hung jury. >>> coming up on the "morning news," administration infighting. u.n. ambassador nicky hallie fights back over confusion of russian sanctions. >>> and extraterrestrial diamonds. the secrets revealed in a sparkling meteorite. this is the "cbs morning news." a sparkling meteorite. this is the "cbs morning news." saving you time, so you can keep saving the world. >> kids: ♪ safelite repair, safelite replace ♪ so if you have heart failure, your heart doesn't only belong to you. ask your doctor about entresto. it helped keep people alive and out of the hospital. don't take entresto if pregnant. it can cause harm or deat

charles: i hadn't heard from howard schultz.nt. ashley: i'm surprised we haven't. he is always very vocal. you say don't blame the police, blame starbucks. the police say we were doing what they were supposed to do. they came in, wanted to use the bathroom for paying customers only. didn't order any drinks or food. they were asked to leave, repeatedly. they refused. that is it when the police were called, they showed up and carried out what the business wanted them to do. to the judge's point they didn't have to go as far as they did and come outside to resolve it. yes was why are they being asked to leave in the first place. liz: that is great point, ashley. starbucks is h business model for the franchise stores to be town square with coffee. people linker there, sit there for a very long time. i have always joked maybe starbucks should start charging rent for people sitting at those tables. the tipping about using the restroom that is an issue, but to handcuff them for trespassing. now the ceo reportedly saying he is going to

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( laughter ) >> stephen: well, in response to see incident, starbucks chairman howard schultz has promisede changes. >> i want to personally aiologize for anyone who has hoer felt anything other than respect and dignity in our stores. no one should be asked to leave starbucks. >> stephen: i don't know, i can think of a few people i'd like to see kicked out. the guy watching "war for the eaanet of the apes" on his laptop without headphones. that art student who is clearly sketching you. ppd to try to make sure this doesn't happen in the future, starbucks announced that they'll be closing 8,000 u.s. stores on may 29 for racial-bias training. on000 stores-- that's almost all the locations on this block! ( laughter ) i just wonder what this training session is going to be like for black starbucks employees. "okay, guys. let's all settle down and listen while this nice white lady from h.r. tells us what racism is. it's so sad." ( laughter ) ( applause ) i did not know! --d you-- did you know? i did not know! ( applause ) oh! ( laughter ) are we done? now, it's questionable whether this is going

we will learn more about starbucks' plans tomorrow when executive chairman howard schultz appears on "cbs this morning." >>> stormy daniels was back on television today with more to say about president trump and posting a reward for a mystery man she says warned her to keep quiet. here's justice reporter paula reid. >> reporter: stormy daniels responded for the first time today to president trump's claim that he didn't know about the $130,000 his lawyer paid her to keep quiet about their alleged affair. >> well, you'll have to ask michael cohen. >> i work in the adult business and i'm a better actress than he is. >> reporter: daniels and her attorney, michael avenatti, produced a sketch of a man she says threatened her in a parking lot seven years ago and they're offering a $100,000 reward for any information about him. they wouldn't say whether they've shared that sketch with law enforcement. >> i'm done being bullied. >> reporter: daniels alleges the suspect approached her after she agreed to sell her story. she first described the encounter last month on "60 minutes." and a guy wa

i think they're going to philadelphia, all the executives i think howard schultz is probably already, too. they are to deal with the philadelphia situation there's a protest today at the store. this is a test for kevin johnson, the ceo he used to be at microsoft i know him pretty well from when he was at microsoft. what's interesting is that starbucks is considered one of the more progressive companies if you made a list before this this is just an incident where there's failure all over the place. it's really a test of how they respond. and if this picks up, this idea of these -- there's always delete facebook, delete uber, delete starbucks we'll see if it picks up around the country. it could, because of social media and other things, unless they don't -- if they respond aggressively and apologize and do things, i think they'll be in better shape than not. >> scott, do you think kevin johnson is doing the right thing here, getting ahead of this and being apologetic right front >> he has put thhim on the board of facebook. you address the issue, put him on camera. didn't surround hi

starbucks executive chairman howard schultz says he is, quoting now, embarrassed and ashamed.erience. it's an emotional learning experience, and i take it personally. so, yeah, i'm affected by it. and i'm going to fix it. >> contrast that with a couple milestones being celebrated involving two of music's biggest stars. at coachella, the largest music festival in the u.s., beyonce is the first woman of color to ever headline it and rapper kendrick lamar becomes the first winner of a pulitzer prize for music that isn't a classical or jazz musician. what does this say about race in america? joining me now is van jones. good to see you. how do we assess what's happening when you have new examples of racial profiling juxtaposed against barriers still being broken? >> well, you know, when a train is moving, all the cars aren't in the same place and i think we may be seeing real progress and real breakthroughs in some places, certainly in the arts and communication and in entertainment, you're seeing breakthrough after breakthrough. ryan coogler with "the black panther" and that can

howard schultz is at the top of the so-called capitalist movement.y were going it teach american corporations how to be nicer tote environment. nicer to the customers. put profits last. show people that mean-spirited corporate wall street was greedy and they are going to teach everyone how to do it right. i have got to tell you something, they learned a valuable lesson, i think, themselves. >> neil: i'm not quite sure what happened here. can you teach people how to act like human beings. isn't so much a racial issue as it is a clueless issue to me. >> it's dumb business. i think it's real dumb business. one of the reasons it echos so loudly with a lot of folks. this is a company that invited people in to chill out at their stores. they created this 15 years ago free wi-fi. bring your laptop, chill out and we don't have a problem. >> neil: yeah. the free wi-fi only goes so far. we will watch that may 29th. the big day. charles payne, thank you very, very much. in the meantime, where i'm coming from here. this is the senate finance committee room. and

. >> first of all, i think starbucks, howard schultz has done a great job of advocating for lower minimumages, educating his staff, he is putting his people through college. he is clearly leaning towards a liberal stance on society. so i don't think you can blame and say starbucks is offsides here i don't know i wasn't there but it seems like the police might have overreacted as well so bottom line here, starbucks is a valuation story that people need to get comfortable with and i think at 19 times 2019 numbers, this has actually gotten to a place where this stock is very attractive. >> look, right or wrong, whether they actually made a mistake or not, kevin johnson handled this i think very well. in a very delicate, difficult situation. he reacted immediately he talked about training he talked about the fact that he is going to look at the training and whether or not there needs to be some changes within that strategy i think they executed it well versus other public companies who in the past haven't, who let things linger on they didn't let it linger on a plus for them. >> he said it's

i would say to howard schultz and kevin johnson black people have done a great job protecting ourselves steve: well, it does sound as if eric holder, former attorney general is going to help with the training that day. kevin jackson, we thank you for joining us today from phoenix to weigh in. >> no justice, no coffee, steve. ainsley: thanks, kevin. steve: straight ahead. ainsley: it's the end of an era for the first time in 60 years. cuba will no longer be ruled by castro. our next guest a cuban american says it's no time for celebration. plus, dana loesch is going to join us live in the next hour ♪ on the job from 9 to 5. working 9 to 5, what a way to making a living ♪ barely getting ainsley: well, it is the end of anner are a in nearly 60 years, cuba will no longer be led by a castro. raÚl castro was planning to step down as president later today with his current vice president taking over. so, what does this mean for future relations with our country? maria elvira salazar is a republican congressional candidate for florida's 27th district and cuban american and joins us with insight.

now it is at the level of the chairman of the brand, howard hw howard schultz, this is not a black issue is not civil rights issue. this is silly issue, probably happened with an overzealous manager of a store and a couple of guys who have a chip on their shoulder. now we've got to discuss this if america is in racial turmoil. what will they call this day, neil. on may 29th. is this d ray mckesson day? what plaque person will put his name that save black people from starbucks? by the way, the philadelphia starbucks, a location where there are more black people than you can shake a stick at. suddenly, nobody even talked about the other aspects of this, how many other blacks in the starbucks were serving? how many blacks does starbucks serve on routine day throughout this country? thousands if not millions. but now suddenly we have a racial issue. it is ridiculous. neil: how do you feel as an african-american the way these gentlemen were treated? i mean, because it has become instantly a racial event? >> sure. first of all i'm black. i'm an american who happens to be black. i'm not an afri

i was parochial and when i saw starbucks in 19, there were five stores, howard schultz likes to remindwith five stores in seattle and someone in my west coast said there's a coffee shop out here that's really terrific, i said what we need another coffee shop for. there's three on every block and unfortunately i didn't see the exponential effect of what starbucks was pretty was not a coffee shop, it was a place to congregate and have an experience. >> would you put money to starbucks now? >> i don't think so, but there are still people who come in in a month doesn't go by without seeing someone has a new coffee shop concept or the latest one i saw which was very good is called jax. have you heard of it? they've got five or ten stores. >> did you invest. >> i just saw the deal recently. the most interesting thing is the startup world is on fire around this country today. new york is probably a good example of it, but maybe one of the best, we see literally between 75 and 100 new deals every single week. our l.a. office sees between 25 to 50 every single week. >> hold on a second. >> it's

well,, starbucks now turning to longtime leader howard schultz to ease tensions following the arrestf two black men at a store in philadelphia last week. scholz telling cbs the closing 8000 stores in order to provide racial bias trading to all employees is one step in changing the way the coffee shame does business. kevin johnson also joining the parade of apologies. we spoke with him yesterday. >> well, certainly what happened in our store that resulted in the arrest of these two gunmen was reprehensible. shouldn't have happened. my responsibility is to come here to philadelphia. i've been here the last several days to make sure i understand how this could've ever happened and take appropriate action to make sure it never happens again. cheryl: welcome reports say the trend and it will cost starbucks as million dollars. shares of starbucks at 4% for the year. i asked about the cost of shutting down the stores, but they're in a quiet. right now when he was unable to answer a question. it's a huge cost for the company. dagen: is a cause, but it sends a message to all the employees and

. >> starbucks has faced scandal before in 2014 when ceo howard shul schultz and founder wanted to havenversation and put it on the cups, turned out that they didn't want to talk race and 2013 they didn't allow guns and sales have been climbing. >> we'll see if they put this issue to bed for now at least. >>> highest levels for the month as the s&p is flirting once again for going positive for the year "squawk alley" starts in a couple of minutes. as a control enthusiast, i'm all-business when i travel... even when i travel... for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges. what can i say? control suits me. go national. go like a pro. >>> good morning, it's 8:00 a.m. at starbucks headquarters in seattle. it's 11:00 a.m. on wall street and "squawk alley" is live ♪ got to testify lookin