The Starbucks Workers United (SWU) strike continues to grind on with the action escalating to a 48-hour demonstration at the company’s locations across Chicago.
The “Downtown Throwdown” will spread to over a dozen restaurants located in Chicago’s Loop and River North, including Chicago’s Reserve Roastery, the world’s largest Starbucks. Demonstrations will run through the day and night until Friday morning in what the union characterizes as “the boldest demonstrations yet of union baristas’ resolve.”
The “Red Cup Rebellion” kicked off mid-November to coincide with the company’s busiest day of the year, spreading to 95 stores in 65 cities within a week. The strike has since included 3,000 baristas across more than 145 stores in 105 cities, making this the longest, nationwide unfair labor practice strike in the company’s history.
The strike has also drawn solidarity from trade unions across the globe as the “No Contract, No Coffee” campaign resulted in demonstrations in South America, Europe and Asia.
In the company’s hometown, three stores currently remain closed due to staffing shortages resulting from the strike, including the iconic Starbucks Reserve Roastery in Seattle’s Capitol Hill neighborhood. While the company states the store has been closed since September as part of a major corporate restructuring and store consolidation, pressure from the union likely contributed to the decision to permanently shutter the restaurant.
To end the action, the union is demanding Starbucks (SBUX) offer employees a new contract that would provide for better hours to improve staffing, higher take-home pay, and a resolution of unfair labor practices by the company.
“Finalizing a fair union contract would cost Starbucks less than one average day’s sales and less than Starbucks CEO Brian Niccol’s $96 million compensation for just four months of work in 2024,” the union said.
Although the SWU says the company has not attempted to negotiate an end to the strike, Starbucks (SBUX) claims the union walked away from talks while also arguing that it already provides top retail employment with an average hourly compensation exceeding $30 in pay and benefits.
Despite attempts to disrupt the business and put a meaningful dent in sales, the strike has so far done seemingly little financial harm to Starbucks (SBUX). This year’s Red Cup Day was the strongest in the company’s history in terms of sales and store traffic, and management previously stated that the strikes haven’t significantly disrupted operations nor impacted the company’s bottom-line.
Seeking Alpha has reached out to Starbucks for comment regarding the Red Cup Rebellion and any recent impact on the company’s business.