Red Cup Day at Starbucks May Have Some Hiccups

More than 1,000 unionized Starbucks workers went on strike at 65 US stores Thursday to protest a lack of progress in labor negotiations. The strike was intended to disrupt Starbucks' Red Cup Day, one of the company's busiest days, per the AP. Since 2018, Starbucks has given out free, reusable cups that day to customers who buy a holiday drink.

• Impact: Starbucks Workers United, the union organizing baristas, said Thursday the strike had already closed some stores and was expected to force more to close later that day. The union said stores in 45 cities would be impacted, including New York, Philadelphia, Minneapolis, San Diego, Dallas, and Starbucks' home city of Seattle. There's no date set for the strike to end, and more stores are prepared to join if Starbucks doesn't reach a contract agreement with the union, organizers said. Starbucks emphasized the vast majority of its US stores would be open and operating as usual on Thursday.

• Background: The coffee giant has 10,000 company-owned US stores, as well as 7,000 licensed locations in places like grocery stores and airports. Around 550 company-owned US Starbucks stores are currently unionized. More have voted to unionize, but Starbucks closed 59 unionized stores in September as part of a larger reorg campaign.
• Reasoning: Striking workers say they're protesting because Starbucks has yet to reach a contract agreement with the union. They first voted to unionize at a store in Buffalo in 2021. In December 2023, Starbucks vowed to finalize a deal by the end of 2024. But in August of last year, the company ousted Laxman Narasimhan, the CEO who made that promise. The union said progress has stalled under Brian Niccol, the company's current boss. The two sides haven't been at the bargaining table since April.

• Wants: Workers say they're seeking better hours and improved staffing in stores, where they say long customer wait times are routine. They also want higher pay, pointing out execs like Niccol make millions; the company also spent $81 million in June on a conference in Las Vegas for 14,000 managers and regional leaders. Starbucks says it offers the best wage and benefit package in retail, worth an average of $30 per hour.
• Insider's take: "I want Starbucks to succeed. My livelihood depends on it," Pittsburgh barista Dochi Spoltore said. "We're proud of our work, but we're tired of being treated like we're disposable." More here.