Same-store sales have fallen for six straight quarters, and operating margins have been hit by inflation and rising labor costs.
Starbucks Workers United went on strike across the United States on Nov. 13 over what the union says is the company’s refusal to offer new contract proposals and its continued use of unfair labor practices.
More than 1,000 baristas represented by the union walked off the job on Red Cup Day, one of the chain’s biggest sales days of the year. The strike began at 65 stores in more than 40 cities, according to the union.
Workers say they acted after six months of inaction from Starbucks on staffing levels, wages, and the resolution of hundreds of pending unfair labor practice charges.
The industrial action comes amid broader changes at Starbucks. In September, the company announced plans to cut approximately 900 corporate jobs and close underperforming stores across North America as part of a restructuring effort aimed at revitalizing sales.
Same-store sales have fallen for six straight quarters, and operating margins have been hit by inflation and rising labor costs. The coffee giant has also been squeezed by increasing coffee bean prices after tariffs imposed on Brazil in July triggered a spike in U.S. import costs.
Lawmakers from both parties have since introduced the No Coffee Tax Act to roll back the duties.
Starbucks Workers United represents workers at more than 550 Starbucks stores nationwide.
Union spokesperson Michelle Eisen, a 15-year barista, said the company risked a major disruption.
“If Starbucks keeps stonewalling a fair contract and refusing to end union-busting, they’ll see their business grind to a halt,” she said.
She added that the union’s rallying cry, “No Contract, No Coffee,” reflects a commitment to pressure the company until it addresses pay, hours, and legal disputes.
Stores in cities including Anaheim, Seattle, Philadelphia, New York, Minneapolis, St. Louis, Austin, and Portland joined the walkout. Workers described the strike as the largest in Starbucks’ history and said more locations could follow.
