Starbucks’ Record Sales Clash With Barista Strike As Employee Comms Break Down

The Starbucks Workers United union expanded its nationwide strike to 95 stores, protesting stalled contract talks and alleged union-busting, as reported by AP. The move comes just as the coffee giant celebrated record-breaking holiday sales, creating a stark contrast between corporate performance and worker discontent.

• Tempest in a coffee cup: Starbucks claims the strike is having a negligible effect, stating 99% of its U.S. stores remain open. The company boasted that its "Red Cup Day" promotion, which coincided with the strike's first day, drove record sales, a claim supported by data from Placer.ai showing a nearly 45% jump in foot traffic.

• A bitter blend: The union, however, accuses Starbucks of "historic union busting" and failing to finalize a contract for the roughly 550 unionized cafes. "Instead of listening to us and investing in baristas, Starbucks is refusing to resolve ULPs or work together in good faith," said striking shift supervisor Sabrina Martinez. The union also highlights that National Labor Relations Board judges have found over 400 labor law violations against the company.

The two sides haven't been at the bargaining table since April, creating a stalemate that presents a major test for the company's brand and the strategies of its new CEO, Brian Niccol. His challenge is clear: while the company recently posted its first global sales growth in nearly two years, the U.S. market remains stubbornly flat. The labor dispute is drawing significant political pressure, with dozens of U.S. senators and representatives voicing support for the union. This fight is happening as the brand faces other headwinds, including consumer boycotts and new competitors.