On November 13, 2025, Starbucks unionised baristas represented by Starbucks Workers United launched an indefinite strike at more than 65 stores in over 40 U.S. cities.
The walk‑out coincides with the company’s Red Cup Day — a high‑traffic promotional event — signalling a strategic move by the union to maximise visibility and bargaining leverage.
According to Starbucks, fewer than 1% of its 17,000‑plus U.S. locations reported disruption at that time.
What Workers Are Demanding
The union’s core demands include:
- Sufficient hours and stable schedules so employees qualify for benefits.
- Improved staffing levels to reduce overwork during peak traffic days.
- Higher wages, especially given that starting wages in many states sit around USD 15.25/hour while average hours fall below 20/week.
- Resolution of alleged unfair labour practices such as firings of pro‑union baristas.
Starbucks reports average wage of about USD 19/hour for its baristas and offers benefits to those working 20+ hours/week, but the union contests that many employees fall short of that threshold.
Strategic Implications for Starbucks
Brand & operations risk: By choosing Red Cup Day — one of Starbucks’ key seasonal traffic drivers — the union is calling attention to operational strain during peak periods. Any material disruption could affect customer experience and brand perception.
Labour cost pressure: If the union secures significant wage or hours concessions, Starbucks may face margin pressure, particularly in an environment of rising costs and ongoing store‑performance challenges.
Investor sentiment: Although the immediate stock hit was modest (about 1% downward on the day) — “In absolute terms, it is a fraction of stores…” one analyst said — investors are closely watching labour‑relations trends as part of Starbucks’ turnaround narrative.
Omnichannel & workforce interplay: The event underscores the broader tension in omnichannel retail between staffing for high‑foot‑traffic physical locations and managing digital and store fulfilment pressures. For Starbucks, future labour strategy will likely need to integrate store operations, mobile order fulfilment, and scheduling flexibility.
What to Monitor Going Forward
- Progress in contract talks: Whether Starbucks and the union return to the bargaining table and reach a first long‑term agreement—particularly notable given this marks nearly four years since the initial unionisation wave.
- Scale and duration of strike: The union has warned this could become “the largest and longest in the history of Starbucks” if no agreement is reached.
- Impact on peak events and store closures: Tracking whether more stores shut temporarily, especially in major markets (New York, Seattle, Austin, Portland).
- Broader labour‑relations ripple effect: Whether this action emboldens other retail or service‑industry employees, and how Starbucks’ peers respond or are influenced.
- Financial outcome & margin impact: While immediate earnings impact may be limited, sustained action or large‑scale concessions could affect Starbucks’ cost base and profitability, especially amid the company’s efforts to revive in‑store experience and efficiency.
