Low Wages! Massive Starbucks Strike Breaks Out Across the United States

Starbucks Workers Strike on Red Cup Day

According to media reports, more than 100 Starbucks employees across the United States walked off the job at their stores on November 17th. Baristas organized the strike to pressure the company into raising wages and improving staffing levels, seeking better pay and benefits.

The timing was deliberate: November 17th was Starbucks' "Red Cup Day," the annual promotion where stores hand out reusable holiday-themed cups. It is typically one of the chain's busiest days of the year, and this 25-year tradition has been considered a key driver of fourth-quarter sales growth.

Reports describe this as the largest Starbucks strike to date. A shift supervisor at a store in Montclair, New Jersey, said the strike came together because Starbucks refused to negotiate in good faith with the union, leading over 100 store employees to choose Red Cup Day for the action.

Starbucks Global Presence and Market Position

Starbucks commands an unmatched global footprint — the densest store network of any coffee chain, reaching nearly every affluent town, with a long-standing focus on commercially sourcing and roasting high-quality Arabica coffee worldwide. With over 32,000 stores across 82 markets, it remains the world's leading specialty coffee chain.

Starbucks Coffee Company was founded in 1971 and is headquartered in Seattle, Washington. In the United States alone it operates nearly 9,000 company-owned stores. China is its second-largest global market: since entering in 1999, Starbucks has opened over 6,000 stores in more than 230 mainland Chinese cities, employing over 60,000 partners (employees).

Financial Performance and Challenges

Per Starbucks' financial results for the fourth quarter and full fiscal year 2022 (ended October 2nd), revenue from July to September grew 3.3% to $8.414 billion — a record for total quarterly sales. But net profit came in at $878 million, down 50.2% year-over-year. For the full fiscal year, total revenue reached $32.25 billion, up 11%, while net profit fell 21.8% to $3.28 billion.

In China, its second-largest market, same-store sales fell 16% — better than analysts' forecast of a 20% drop, and a clear improvement after the 44% plunge the previous quarter. Net revenue narrowed its decline from 38% to 9%, hinting at a gradual recovery in overall performance.

Wage Disputes and Labor Relations

Starbucks has consistently claimed its compensation and benefits exceed industry standards. It attributed the fourth-quarter profit decline to higher employee wages, new worker training, and rising supply chain, food, and material costs. Yet many employees feel their pay is too low and hours too long — and the company's promise of higher wages and benefits for non-unionized stores has only inflamed matters.

Bai Wenxi, chief economist at IPG, told Time Finance: "The US employment picture has been strong in recent years, with unemployment repeatedly hitting historic lows, which has pushed up average compensation, minimum wages, and hourly pay. That's consistent with Starbucks' own description of rising labor costs in its financial reports, since the company relies heavily on part-time workers.

However, the size of Starbucks' wage increases may not have kept pace with the broader rise in average and hourly wages — which is what triggered strikes over low pay. That doesn't actually contradict what Starbucks said in its financial reports about rising employee costs."

Image source: Internet

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• FrontStreet Ethiopia Huakui (Sidama, natural) — Ethiopia's most celebrated heirloom lot, with strawberry, mango, jackfruit, citrus, and blueberry notes; the ripe tropical-fruit character that won first place in that year's TOH green bean competition. Delicious and well-priced.
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