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Starbucks has been ordered to pay $50 million to a California delivery driver who suffered severe burns when a hot drink spilled onto his lap at a Los Angeles drive-through in Feb. 2020.
A jury found Starbucks (SBUX+0.99%) responsible for the incident, which left Michael Garcia with permanent disfigurement and required multiple skin grafts and other medical procedures. Garcia’s legal team argued that an employee had failed to properly secure the lid of hot tea beverage in the takeout tray, causing it to spill immediately after the driver collected his order.
Garcia’s lawsuit accused Starbucks of negligence, claiming that the company’s lack of attention to safety standards resulted in life-altering injuries and emotional distress.
While Starbucks expressed sympathy for Garcia, the company disagreed with the jury’s decision and plans to appeal the ruling, arguing that the damages were excessive. Starbucks did not immediately respond to Quartz’s request for comment.
The verdict, handed down by a Los Angeles County jury on Friday, March 14, marks one of the largest personal injury settlements involving a major coffee chain in recent years.
This case also draws parallels to other lawsuits involving fast-food chains, including the infamous 1990s McDonald’s case, in which a woman was awarded less than $600,000 in damages after suffering burns from hot coffee. The recent ruling highlights the ongoing concerns over consumer safety at major foodservice chains.
The financial hit comes at a critical time for Starbucks. The company has suffered four consecutive quarters of lagging sales, prompting new CEO Brian Niccol to announce a plan to restore the company’s dominance in the coffee industry.
The “Back to Starbucks” strategy will see the chain redesign its stores with expanded seating, power outlets, and comfortable lounge areas. It will also reintroduce condiment bars and handwritten names on cups — although the latter has caused some chaos.
Starbucks is also promising faster service, with baristas brewing fresh coffee in under four minutes. The company has reduced its menu by 30% and added new vegan-friendly options. It also removed the extra charge for dairy-free drinks.
Earlier this month, Starbucks revealed it would eliminate 13 drinks from its menu to make room for better-selling options.