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Starbucks baristas stage third major strike over pay and staffing
Starbucks workers in at least 25 U.S. cities are set to walk off the job on Thursday, marking the third major strike since the Starbucks Workers United union formed four years ago. The action coincides with the company's annual Red Cup Day promotion, a key holiday sales event, and threatens to disrupt operations during a critical period for the coffee giant.
Union demands clash with Starbucks' turnaround strategy
Baristas and union representatives argue that recent policy changes-part of CEO Brian Niccol's "Back to Starbucks" revival plan-have increased workloads without addressing core concerns. Michelle Eisen, a former 15-year Starbucks barista and union spokesperson, criticized the company for "running workers to the ground" while pursuing customer-focused initiatives like ceramic mugs, handwritten notes, and stricter dress codes.
Starbucks maintains the strike will not significantly impact its 10,000+ U.S. stores, but labor tensions persist. The union, representing over 600 locations, rejected a contract offer in April that included no raises in the first year and 2% annual increases afterward-terms they called insufficient amid inflation and rising healthcare costs.
"Every single day at this company has been very, very difficult to be a barista."
Michelle Eisen, Starbucks Workers United spokesperson
CEO Niccol's turnaround efforts show mixed results
Hired in 2024 after successful turnarounds at Chipotle and Taco Bell, Niccol has rolled out changes like restricted bathroom access, reinstated seating, and a $500 million investment in staffing and training. While global sales grew 1% last quarter-the first increase in nearly two years-U.S. sales remained flat, and the company has closed hundreds of stores and laid off thousands.
Analysts warn unresolved labor disputes could harm both operations and reputation. Starbucks dropped to its lowest brand ranking since 2016 in Brand Finance's 2025 report, with customer perception declining. Over 80 Democratic lawmakers this week accused the company of "union-busting" and urged good-faith negotiations.
"Happy customers have to come from happy employees. You can't do that top down."
Stephan Meier, Columbia Business School professor
Stalemate persists despite mediation
Contract talks stalled after Niccol's arrival, with the union citing his history at Chipotle, where labor violations were alleged. A federal mediator joined negotiations in January, but disputes over pay, staffing, and hundreds of unresolved unfair labor practice charges remain. Starbucks counters that union demands would "significantly affect store operations," while touting its $30 average hourly wage (including benefits) and low turnover rates.
Unionized stores represent just 5% of corporate-owned U.S. locations, but organizers claim 100 new shops joined in the past year. The prolonged conflict risks overshadowing Niccol's efforts to revive Starbucks' coffeehouse appeal amid competition, boycotts, and pricing backlash.
What's next
Thursday's strike targets Red Cup Day, a high-traffic event where Starbucks typically gives away reusable cups. The company has not indicated plans to alter the promotion, but analysts say further labor unrest could prolong reputational damage. Union leaders and Starbucks have yet to schedule new talks.
