Lawmakers call out coffee chain over ‘wrong’ senior, PWD discount policy

Coffee and croissant. STOCK PHOTO

MANILA, Philippines — An international coffeehouse chain is being reprimanded over its alleged erroneous discount policy for senior citizens and persons with disability (PWDs).

During Wednesday’s hearing of the House committee on ways and means, panel head Albay 2nd District Rep. Joey Salceda asked Starbucks Philippines, through its licensee Rustan Coffee Corp., to offer a drink and croissant to seniors and PWDs “as penance” for the alleged mistake.

He warned the company that it may face prosecution for supposedly violating Republic Act No. 9994 or the Expanded Senior Citizens Act of 2010.

The popular beverage retailing firm recently found itself in hot water because of its announcement in stores nationwide that seniors and PWDs can only enjoy discounts for one food item and one beverage per visit.

“So as penance? So, declare tomorrow as PWD and senior citizen day? Will you?  So that you don’t repeat it?” Salceda asked Starbucks Philippines operations director Angela Cole.

READ: Lawyer calls prompt probe into senior, PWD discount violations

He further suggested that the coffee chain offer a free drink and pastry or bread to senior citizens and PWDs as a way to compensate for their blunder, emphasizing that he would want the multinational company to remember their fault.

Salceda also said that he would want it to be an “exemplary action,” showing that the firm regrets its misdeed.

Cole admitted that the advisory was an error as “our signage was not properly worded.” She said that they were “disappointed at the confusion that we have caused,” explaining that it was originally intended as a response to their employees’ queries for “a suggested approach” on the matter.

She maintained that Strabucks employees nationwide “are fully empowered to address each situation appropriately, as such, for us, customer service is paramount, most especially as we extend discounts to our very valued senior citizen and PWD customers.”

Cole also said that they extend the discount as a privilege to seniors and PWDs “without hesitation, most especially if it is for personal consumption.”

According to the Starbucks Philippines official, they immediately removed the notice and it was not followed.

However, she added: “I don’t know about the libre (freebies) but we will be more than happy to extend the discount that is rightfully, you know, to value our senior citizens and PWD customers.”

Salceda nevertheless proposed writing a letter to Rustan Coffee Corp. for a formal request – to which Cole agreed.

“Sorry is not enough […] you know your gross is 43 percent, so, in other words, your add-on is about 60 (percent), so that’s nothing, and also these are old people, they cannot flock Rustan’s, while your purchase volume with increase with a buy one take one?  That’s almost free, look at it, you run the numbers,” he explained.

“So I will take that, and I will wait for your answer of a […] one croissant plus one drink for all senior citizens on top of their (order),” he added.

READ: House to probe firms denying discounts to seniors, PWDs 

The hearing of the House ways and means panel was called to start a motu proprio investigation into the alleged violations of laws mandating discounts for products and services purchased by seniors and PWDs.  According to Salceda, Speaker Ferdinand Martin Romualdez instructed the committee to investigate the issue.

“In light of this, our Speaker is urging our Committees to scrutinize the compliance of businesses and service providers with these laws and ensure the proper and effective implementation of discounts for senior citizens and PWDs,” Salceda said.

“On the part of the committee on ways and means, we are particularly interested in the revenue foregone from these discounts, tax exemptions, and privileges, and hope that our Department of Finance can provide us with this information in due time. We would like to know estimates of revenue leakages as well,” he added.