Post by : Badri Ariffin

Starbucks is experiencing its most severe labor dispute to date, with a rapidly growing strike impacting over 120 stores across 85 cities in the U.S., coinciding with the peak holiday shopping season.

The strike initiated on November 13 during a Red Cup Day protest at 65 locations. What began as a call for increased visibility has escalated into a widespread disruption just ahead of Black Friday, one of the busiest times for the coffee giant. This timing poses significant challenges, as the surge in foot traffic and holiday promotions typically herald strong weekly sales.

Despite the company asserting that 99% of its U.S. outlets remain open, the ongoing strike is testing its operational capabilities. Workers United represents more than 11,000 baristas nationwide, demanding better pay, staffing improvements, and resolutions to numerous concerns related to scheduling and workplace treatment.

This unrest mirrors a larger trend of labor action enveloping global retail and logistics sectors during the holiday rush. On the same day as the Starbucks protest, Amazon workers in Germany and Zara employees in Spain staged demonstrations, indicating a collective movement for improved working conditions amid peak shopping times.

The escalating tensions arrive at a critical juncture for Starbucks, which is currently implementing a turnaround strategy aimed at enhancing service speed and regaining customer trust. Its recently broadened Green Apron Service initiative has started to demonstrate early signs of improving performance, with global comparable sales rising by 1% in the last quarter following a prolonged downturn, continuing into October.

Nevertheless, challenges persist, as increasing operational costs, inflation, and heightened labor expenses are straining profit margins. A prolonged conflict could exacerbate pressures just as the company prepares for its first-quarter 2026 earnings announcement in January.

For the moment, both parties appear to be at an impasse, with the holiday season overshadowed by a dispute that shows little sign of resolution.

#Global News #Business News #Economy