Starbucks Shares Dip Amid Looming Barista Strike

Investing.com -- Starbucks Corporation (NASDAQ:SBUX) shares fell by 0.75% due to potential strike threats from the company's unionized baristas. The union representing Starbucks Corp. baristas announced a planned five-day strike starting Friday after negotiations reached an impasse. The strike is expected to affect stores in major cities like Los Angeles, Chicago, and Seattle.

The labor dispute has been ongoing since the organization of the first store in December 2021, with workers demanding better wages, work schedules, and hours. This represents the latest development in a series of contentious interactions between Starbucks and its unionized workforce. In November, a high-profile strike occurred during the company's significant promotional event, Red Cup Day.

Starbucks Workers United, representing workers in over 500 of the approximately 10,000 operated stores in the U.S., expressed dissatisfaction with the coffee chain's latest offer, which did not include an immediate pay raise for union members. The union predicts that strikes could spread to hundreds of stores by Christmas Eve, potentially impacting the company's holiday season performance.

In response to the planned strike, Starbucks noted that the union "terminated the last negotiation session prematurely" and emphasized its willingness to continue discussions. The company highlighted that it has provided "meaningful agreements" on more than 30 issues important to workers, including economic demands. Starbucks also stated that it is focused on enhancing the worker experience, claiming that the average wage and benefits package for baristas working at least 20 hours a week is around $30 per hour.

As the situation develops, investors are closely watching how the strike will impact Starbucks' operations and whether both parties can reach a mutually satisfactory agreement that resolves the labor dispute.