Starbucks Workers United announced an open‑ended strike that began on November 13 2025, involving more than 1,000 unionized baristas in 65 company‑operated stores across more than 40 U.S. cities. The walkout coincides with the company’s annual Red Cup Day promotion, the single‑day event that historically drives the highest traffic and sales volume of the holiday season.
The union’s core demands include higher wages, improved working hours, and the resolution of more than 700 outstanding unfair‑labor‑practice complaints. The strike follows a failed contract vote in October, marking a significant escalation in a dispute that has stalled Starbucks’ first collective‑bargaining agreement. Union officials have indicated that baristas at more than 550 unionized stores are prepared to join the action if negotiations do not resume.
Starbucks spokesperson Jaci Anderson reported that the walkout had limited effects on sales early in the day and that the company was on track to exceed sales expectations for the holiday period. However, the potential for a broader walkout raises concerns about operational disruptions and the impact on the company’s “Back to Starbucks” turnaround plan, which focuses on store experience, operational efficiency, and growth. The strike could undermine the momentum Starbucks has gained in Q4 FY2025, when consolidated net revenues increased but operating margin contracted due to restructuring costs and labor‑hour investments.
Financial context shows that Q3 FY2025 operating margin contracted as a result of deleverage, investments in the “Back to Starbucks” program, and inflationary pressures. In Q4 FY2024, margin contraction was driven by deleverage, wage and benefit investments, and promotional activity. Despite these headwinds, Q4 FY2025 saw a return to global comparable store sales growth, indicating that the turnaround plan is beginning to generate positive traction, though profitability remains challenged by ongoing investments and cost inflation.
CEO Brian Niccol has stated that the “Back to Starbucks” plan is “working” and that the company is “ahead of schedule” in building a strong operating foundation. CFO Cathy Smith highlighted significant investments in labor and the Leadership Experience 2025 program, noting that these initiatives have impacted earnings per share. The union’s readiness to expand the strike to 550 stores underscores the seriousness of the labor dispute and its potential to affect Starbucks’ holiday revenue and broader market position.
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