A Starbucks strike disrupted operations at 65 U.S. stores on Thursday, coinciding with the company’s popular Red Cup Day. More than 1,000 unionized workers walked off the job to protest a lack of progress in labor negotiations with the coffee giant. Starbucks Workers United, the union organizing baristas, said the strike had already closed multiple locations and could expand if no contract agreement is reached.
Red Cup Day, one of Starbucks’ busiest annual events, offers customers free reusable cups with holiday drink purchases. This year, the strike affected stores across 45 cities, including New York, Philadelphia, Minneapolis, San Diego, St. Louis, Dallas, Columbus, and Seattle, Starbucks’ home city.
Labor Dispute Stalls Contract Agreement
The ongoing strike stems from stalled negotiations. Starbucks workers first unionized in 2021 at a Buffalo store, and in December 2023, the company pledged to finalize a contract by the end of 2024. That commitment was under former CEO Laxman Narasimhan, who was replaced by current CEO Brian Niccol. Since April, union representatives say there has been no meaningful progress at the bargaining table.
Striking employees are seeking higher pay, more consistent hours, and better staffing. Many report routinely working fewer than 20 hours per week, limiting their access to company benefits. Barista Dochi Spoltore from Pittsburgh said she earns $16 per hour and feels treated like a “disposable” employee despite her dedication to Starbucks.
Union Demands and Company Response
The union also wants Starbucks to address hundreds of unfair labor practice charges, alleging retaliatory firings and failed bargaining over policy changes, such as restroom access restrictions.
Starbucks maintains that its wages and benefits remain competitive, with an average value of $30 per hour, up to 18 weeks of paid family leave, and 100% tuition coverage for a four-year degree. Chief Partner Officer Sara Kelly emphasized that some union proposals would significantly disrupt operations, including allowing workers to shut down mobile ordering if queues exceeded five orders. Starbucks says it is ready to resume negotiations.
Visibility and Public Impact
Past Starbucks strikes on Red Cup Day in 2022 and 2023, as well as a five-day strike last December, affected relatively few stores but were highly visible. Todd Vachon, a Rutgers labor expert, noted that retail depends on employee-customer connections, making public strikes a potent tool for the union to educate consumers about barista concerns.
Despite the strike, Starbucks’ non-union locations vastly outnumber unionized ones, minimizing immediate operational impact. Still, the ongoing strike underscores broader labor tensions and worker advocacy within the retail sector.
Sales Trends Amid Labor Tensions
Starbucks’ same-store sales, which track locations open at least a year, rose 1% in Q3, marking the first increase in nearly two years. CEO Brian Niccol has implemented new hospitality standards, redesigned stores for cozier experiences, and adjusted staffing to handle peak hours more effectively.
The company also prioritized in-store orders over mobile orders. Its holiday drink rollout, including the limited Bearista glass cup, sold out almost immediately, highlighting strong consumer demand even amid labor unrest.
As negotiations continue, the Starbucks strike could remain in the public eye, drawing attention to employee pay, benefits, and working conditions while testing the company’s operational resilience during peak holiday periods.
Featured Image: Unsplash
