Over 1,000 unionized Starbucks workers launched a strike at 65 U.S. locations on Thursday, protesting the lack of progress in labor negotiations with the company. The walkout coincided with Starbucks’ busy Red Cup Day, traditionally one of the company’s busiest days of the year. On this day, Starbucks hands out free reusable cups to customers who purchase a holiday drink.
According to Starbucks Workers United, the union representing the baristas, the strike had already shut down several stores and was expected to close even more later in the day. The protest impacted locations in 45 cities, including New York, Philadelphia, Minneapolis, San Diego, St. Louis, Dallas, Columbus, Ohio, and Seattle, where Starbucks is headquartered. The strike is open-ended, and more stores could join if the company fails to reach an agreement with the union.
Starbucks responded by emphasizing that the majority of its U.S. stores remained open. The company operates 10,000 company-owned stores in the U.S., in addition to 7,000 licensed locations. By noon Thursday, Starbucks reported that it was on track to meet or exceed its sales targets for the day at its company-owned locations.
Why the Strike?
The strike stems from a stalled contract agreement between the company and its workers. Workers first voted to unionize at a Buffalo, New York, store in 2021, and in December 2023, Starbucks pledged to finalize a deal by the end of 2024. However, progress stalled after the company ousted former CEO Laxman Narasimhan and placed current chairman and CEO Brian Niccol in charge. The union claims that negotiations have halted under Niccol’s leadership, with the two sides not meeting since April.
Workers are demanding better pay, improved hours, and increased staffing to address long customer wait times, which they say have become routine in many stores. They also pointed out the disparity between executive pay and worker wages, citing Niccol’s multimillion-dollar salary and the company’s $81 million spending on a conference for 14,000 managers and regional leaders. Barista Dochi Spoltore from Pittsburgh noted that many workers are assigned fewer than 20 hours a week, making them ineligible for benefits.
Spoltore expressed frustration, saying, “We’re proud of our work, but we’re tired of being treated like we’re disposable.” The union is also pushing for the resolution of hundreds of unfair labor practice charges, alleging that Starbucks has retaliated against unionizing employees by firing them and failing to negotiate changes in company policies.
Starbucks’ Response
Starbucks counters that it offers one of the best wage and benefit packages in retail, with an average hourly rate of $30 and benefits like 18 weeks of paid family leave and 100% tuition coverage for a four-year degree. In a letter to employees, Starbucks’ Chief Partner Officer Sara Kelly explained that the union walked away from the bargaining table in spring 2023.
Kelly added that the union’s proposals, including the ability to shut down mobile ordering if a store has more than five orders in the queue, would disrupt the company’s operations. She also pointed out that surveys show most employees are satisfied with working for Starbucks, noting that the company’s barista turnover rate is half the industry average.
The Impact of the Strike
While the number of unionized Starbucks stores is still relatively small (around 550 of the company’s 10,000 locations), the strike’s visibility is significant. Labor expert Todd Vachon noted that retail industries, unlike manufacturing, depend heavily on the relationship between employees and customers, making public strikes an effective tool for educating the public about workers’ concerns.
The strike follows previous disruptions in 2022 and 2023, including a five-day walkout in December 2022 that led to the closure of 59 stores. While Starbucks insists that these walkouts have minimal impact on its overall operations, the union’s current strike is open-ended and could potentially spread to more locations.
Starbucks’ Performance Amid Strike
Despite the ongoing labor dispute, Starbucks saw a rise in same-store sales during the July-September period, marking the first sales increase in nearly two years. Under CEO Brian Niccol, the company has made adjustments to improve in-store operations, including redesigning stores and optimizing staffing to better handle peak hours. Starbucks also made efforts to prioritize in-store orders, resulting in a successful rollout of its holiday drinks and a sell-out of its limited-edition Bearista cup.
