(Bloomberg) — A Starbucks Corp. barista strike has shut down about 170 cafes, according to the coffee chain, disrupting service at locations nationwide during the final days of the crucial holiday shopping season.
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The union said it expects the number of stores impacted to hit 300, but it’s unclear if the group will hit that target by the end of Christmas Eve.
Over 5,000 workers in Boston, New York and Philadelphia, among other cities, planned to join the work stoppage on Tuesday, according to an emailed statement from Starbucks Workers United. Elected officials, including Pittsburgh Mayor Ed Gainey, have also joined striking baristas on the picket line over previous days, with the union asking for further support on its last scheduled day of action.
The walkouts began on Dec. 20 at a handful of locations in Chicago, Los Angeles and Seattle and escalated over the following days.
“Only around 170 Starbucks stores did not open as planned,” the company said Tuesday morning, leaving 98% of its more-than 10,000 company-operated stores open.
Baristas will return to work Wednesday or Thursday, and are ready to resume negotiations, according to the union.
Starbucks Workers United planned the walkouts to coincide with the days leading up to Christmas — an important time for Starbucks as shoppers treat themselves to lattes while finishing up their shopping. In addition to beverages, the company sells a large volume of gift cards during the year’s final months.
The strikes were sparked by a breakdown in final-stage negotiations between the union and company leadership, according to the union, which represents employees at over 500 stores. Starbucks Workers United said the coffee chain offered a package that included no immediate pay raises for its members.
Unionized employees and the company have been facing off since the first store organized for better pay, hours and schedules in December 2021.
Earlier, Starbucks said the union “prematurely ended” a bargaining session and called for talks to continue. The coffee chain has said it’s focused on improving workers’ experience and that baristas who work at least 20 hours a week receive $30 an hour, on average, when combining pay and benefits.
Starbucks Chief Executive Officer Brian Niccol, who took the top job in September, has pledged to negotiate with the union in good faith. The Chipotle Mexican Grill Inc. and Taco Bell veteran was hired to turn around sagging sales. Since he took over on Sept. 9, the stock has declined about 3%, compared with a 10% gain for the S&P 500 Index.
