Starbucks is confronting another strike from unionized baristas at a moment when the company is attempting to revive sales through faster service, store updates, and a renewed emphasis on its coffeehouse model. The walkout, expected to affect stores in at least 25 U.S. cities on Thursday, comes as part of a years-long labor conflict that risks complicating the company’s broader turnaround plans.
Starbucks Workers United, the union representing employees at more than 600 U.S. stores, said the company’s new operational policies have increased barista workloads. Michelle Eisen, a union spokesperson who worked at Starbucks for 15 years before leaving in May, said, “Every single day at this company, as of recently, has been very, very difficult to be a barista,” adding that operational changes should not push workers to exhaustion.
Starbucks said it does not expect the strike to affect operations at most of its 10,000 company-operated U.S. stores. The company noted that fewer than 1% of stores participated in previous coordinated walkouts and that it expects a similar level this time. The action is timed to coincide with Red Cup Day, one of the chain’s key seasonal promotional events, increasing the likelihood that the dispute draws public attention.
The brand has been under pressure from consumer boycotts, increased competition, pricing concerns, and leadership turnover. When Brian Niccol, known for prior turnarounds at Chipotle and Taco Bell, joined Starbucks as chief executive last year, investors responded positively, sending shares up 24%. He introduced a “Back to Starbucks” strategy that included reintroducing seating, adjusting bathroom access, and tightening dress code rules. Starbucks also outlined more than $500 million in planned investments for staffing and training.
Some financial indicators have begun to improve. Last month, Starbucks reported 1% year-over-year growth in global comparable sales, its first quarterly increase in nearly two years. However, U.S. sales remained flat, and progress has been slower than the company projected. The strategy has also come with hundreds of store closures, thousands of layoffs, and the sale of a 60% stake in its China business.
Labor tensions have persisted through these changes. Union leaders said talks showed improvement last year, but they stalled after Niccol joined the company in September. Starbucks Workers United cited disputes over staffing, pay, and unresolved unfair labor practice charges. The union said Starbucks’ latest offer included no raises in the first year of a contract and 2% increases in following years, which members voted down in April. A union spokesperson said the proposal does not keep pace with inflation or healthcare costs.
Starbucks disputes the union’s account of the negotiations. Sara Kelly, the company’s chief partner officer, said the union’s pay demands would “significantly affect store operations and customer experience.” Starbucks spokesperson Jaci Anderson said the company remains open to continuing discussions and pointed to pay, benefits, and turnover rates that the company said amount to an average hourly wage of $30.
Unionized stores represent about 5% of Starbucks’ company-owned U.S. locations, but organizers say they have added roughly 100 stores over the past year. Analysts warned that the ongoing dispute introduces both operational and reputational risks. Brand Finance’s 2025 ranking placed Starbucks at 45th, its lowest position since 2016, influenced partly by customer sentiment. “Happy customers have to come from happy employees,” said Stephan Meier, professor of business strategy at Columbia Business School.
More than 80 Democratic lawmakers issued letters to Niccol this week accusing Starbucks of “union-busting” and urging the company to negotiate. Management adviser Joe Pine said he was “surprised” that the conflict remains unresolved, given the company’s focus on restoring performance.
Featured image credits: Wikimedia Commons
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