Starbucks baristas gather outside a Starbucks store to protest the company during a rally demanding a new contract in New York City on October 28, 2025. Starbucks Workers United is fighting for a new contract that would improve staff hours, take-home pay and protections for baristas on the job. (Photo by TIMOTHY A.CLARY/AFP) (Photo by TIMOTHY A.CLARY/AFP via Getty Images)
Timothy A. Clary | AFP | Getty Images
starbucks Workers United has approved an indefinite strike that could begin on Red Cup Day, one of the coffee chain’s biggest sales days of the year, the union announced Wednesday.
The union is preparing to strike in more than 25 cities if it does not reach a collective bargaining agreement with Starbucks by Nov. 13, this year’s Red Cup Day. Since negotiations between the two sides broke down at the end of last year, the two sides have not actively negotiated a contract. Starbucks and the union went to arbitration in February, and hundreds of barista representatives voted against Starbucks’ proposed stimulus package in April.
According to Starbucks Workers United, the strike authorization received 92% of the vote.
The union is demanding better working hours, higher wages and resolution of hundreds of unfair labor practice charges against Starbucks.
The strike clashes with Starbucks’ annual giveaway of a reusable red cup emblazoned with the company’s logo with every purchase. The giveaway has become a collector’s item for the coffee giant’s biggest fans.
Without an end date in sight, the strike will disrupt Starbucks’ broader holiday season. The holiday season falls in the first quarter of the company’s fiscal year and is one of the busiest times of the year for the coffee chain. Customers flock to the cafe for seasonal drinks like peppermint mochas, gift cards and other merchandise.
Workers United, which began organizing at Starbucks in 2021, says it now represents more than 12,000 workers at more than 650 stores. (The company told CNBC that the union only represents workers at its 550 cafes, explaining that some stores will be closed long-term.)
Starbucks said in a statement that approximately 18,000 company-operated and licensed stores will be ready to serve customers this holiday season.
“We are disappointed that Workers United, which represents only about 4% of our partners, voted to authorize a strike rather than return to the bargaining table. When they are ready to return, we are ready to talk,” Starbucks spokeswoman Jaycee Anderson said in a statement.
Starbucks said its agreement with the union must reflect the reality that “we already offer some of the best jobs in the retail industry, including an average hourly wage of more than $30 per hour and benefits for our hourly partners. The facts show people love working for Starbucks. Partner engagement is up, our turnover rate is nearly half the industry average, and we receive more than 1 million job applications annually.”
The company is in the midst of a turnaround plan dubbed “Back to Starbucks” under new CEO Brian Nicol, and it’s starting to show momentum. Starbucks reported same-store sales growth for the first time in nearly two years in its fiscal fourth quarter. The coffee chain’s global same-store sales rose 1% with tailwinds from international markets. U.S. same-store sales were flat in the quarter, but turned positive in September.
Starbucks also announced a $1 billion restructuring plan in September that analysts estimate includes closing about 500 stores in North America and laying off 900 non-retail employees.
