Starbucks Red Cup Day jeopardized by threat of worker strike

Core Insights - "Red Cup Day" is a significant event for Starbucks, marking the start of the holiday season and the release of reusable holiday cups, which is expected to drive a 20% increase in November traffic at participating stores [4]. Group 1: Labor Strike and Union Pressure - A labor strike is planned for November 13, 2025, coinciding with Red Cup Day, as thousands of workers protest against the disparity between CEO and worker pay [2][4]. - The strike will impact hundreds of stores across 25 cities, highlighting ongoing labor tensions amid Starbucks' struggles to improve sales performance [2][3]. - Workers United has accused Starbucks of delaying contract negotiations and retaliating against union supporters, while Starbucks claims to be negotiating in good faith [6]. Group 2: Operational Challenges - The timing of the strike poses challenges for Starbucks as it attempts to implement major operational changes while facing pressure from Wall Street to enhance performance [3]. - Baristas have raised concerns regarding high stress, unpredictable scheduling, and inadequate staffing during peak times, which are exacerbated by the annual promotion [5]. Group 3: Compensation Proposals - The union has proposed a 65% pay increase immediately and a 77% increase over three years, along with additional payments for weekends and promotional days [7]. - Starbucks maintains that it offers competitive compensation, with an average pay and benefits exceeding $30 per hour for hourly partners [6].