Wed, 12 Nov 2025

Wed, 12 Nov 2025 Starbucks' baristas are striking again – will that hold back the chain's recovery?

The coffee giant is returning to its roots to boost sales but labour tensions could derail the strategy.
Starbucks' efforts to revive its business and regain customer loyalty are being threatened by ongoing labor disputes with unionized baristas, who have scheduled another strike for Thursday. The walkout, which is expected to affect stores in at least 25 cities, comes as the company reports some signs of improvement in sales, but still struggles to address long-standing issues related to pay and staffing. The union, Starbucks Workers United, claims that the company's new turnaround policies have only added to the workload of baristas, making it "very difficult" for them to perform their jobs. Michelle Eisen, a union spokesperson, stated that the policies are designed to increase profits at the expense of workers' well-being. In response to the strike, Starbucks says it does not expect operations to be disrupted at most of its stores, but acknowledges that the action may draw unwanted attention to the company's labor practices. The brand has been facing increased criticism from customers and investors over issues such as high prices, poor customer service, and leadership turmoil. Under new CEO Brian Niccol, who took the helm last year, Starbucks has implemented several changes aimed at reviving the business, including introducing ceramic mugs, hand-written notes, and a stricter dress code for staff. However, these efforts have been accompanied by hundreds of store closures, thousands of layoffs, and the sale of a 60% stake in its China business. The union has accused Starbucks of "union-busting" and failing to offer fair pay increases, citing an average hourly wage of $30 as insufficient given inflation and healthcare costs. The company has offered 2% pay raises in subsequent years, which the union says is not enough to keep up with rising expenses. The standoff between Starbucks and its unionized workers poses both operational and reputational risks for the company, analysts warn. With the brand's reputation already under pressure, further criticism from customers and investors could have significant consequences for the business.
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