Starbucks Workers United launched a strike at coffeehouses in over 40 cities on Thursday, hoping to hamper sales on the coffee chain’s “Red Cup” sales day.
Red Cup Day, when the coffee giant gives away free reusable holiday-themed cups with customer orders, is an annual event for the company. The 2024 Red Cup Day broke records for Starbucks, with the chain seeing a 42% increase in customer visits on the day of the promotion.
The union claims that more than 1,000 baristas have walked out on the job after its membership and corporate leaders failed to secure a collective bargaining agreement. The strike was authorized by 92% of union voters.
Workers United is seeking better pay, benefits, hours, and the settlement of hundreds of legal complaints the union has filed against the company.
“We have been clear that a wage increase floor in future years is insufficient to meet the needs of baristas who are struggling right now to pay bills and get enough hours,” Michelle Eisen, a 15-year barista and union delegate, said in April after contract negotiations collapsed.
“We know pay and benefits are important. That’s why Starbucks offers the best overall wage and benefits package in retail, worth on average $30 per hour for hourly partners,” Chief Partner Officer Sara Kelly said in a statement. “Despite this, Workers United proposes pay increases of 65% immediately and 77% over three years with additional payments on top of this.”
Thursday’s strike is not the first “Red Cup Rebellion.” More than 200 stores participated in a similar strike on Red Cup Day in 2023. Starbucks and Workers United opened negotiations in April 2024, and just before Christmas of that year, 59 stores closed for five days.
The union, which started organizing in Starbucks in 2021, claims to represent over 12,000 employees. The coffee chain said Workers United only represents 9,500 workers. The company has more than 240,000 employees in the United States alone.
The holiday season is typically the busiest time of the year for Starbucks. Under the leadership of new CEO Brian Niccol and his “Back to Starbucks” strategy, the chain recently ended its two-year streak of declining same-store sales.
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The plan centers on improving customers’ in-store experience, including shorter wait times, improved customer hospitality, and more comfortable seating in redesigned store interiors.
Niccol has also shuttered 1% of the company’s locations and laid off nearly 1,000 “non-retail” jobs. Between 150 and 200 underperforming locations have been or will be closed.
