Core Viewpoint - Starbucks workers are set to vote on authorizing a strike, which could disrupt CEO Brian Nichol's turnaround plans for the company [1] Group 1: Strike Authorization and Union Demands - Voting on the strike will begin tomorrow and will be open for several days, with the potential for an open-ended strike if approved [1] - Workers United is advocating for a contract that includes better hours, higher take-home pay, and resolution of numerous outstanding unfair labor practice charges, although specific pay figures are not disclosed [2] - Currently, there are no active negotiations between Starbucks and the union, following a mediation process last spring that resulted in the union rejecting a proposal from Starbucks in April [2] Group 2: Company Response and Financial Context - Starbucks stated that Workers United represents only about 4% of its workforce and expressed willingness to resume negotiations if the union is ready [3] - The company is experiencing negative same-store sales for six consecutive quarters, highlighting the importance of the upcoming earnings report and the effectiveness of the turnaround plan under CEO Brian Nichol [3] - The holiday season typically boosts sales for Starbucks, which may be impacted by the potential strike [3] Group 3: Potential Impact of the Strike - If a strike occurs, the specifics regarding duration, location, and timing remain undetermined, making it unclear how many stores will be affected [4] - There are 650 unionized stores among Starbucks' 18,000 licensed and company-operated stores in the US and Canada, indicating that while the unionized workforce is small, it could still have a meaningful impact [5][6]

Core Insights - Starbucks is implementing a turnaround strategy under CEO Brian Niccol to revitalize sales and improve employee morale, focusing on enhancing customer experience and internal promotions [2][4][5] Group 1: Turnaround Strategy - The strategy includes retooling marketing, improving staffing, addressing mobile app issues, and making cafes more inviting [4] - Starbucks has introduced a new coffee called the 1971 Roast, symbolizing a return to its roots [3] - The company aims to restore its culture by reversing previous decisions, such as reintroducing seating in cafes after removing 30,000 seats [10][11] Group 2: Employee Engagement - Niccol's plan emphasizes giving store managers more control over staffing and product testing, with an increase in assistant managers in North America [6][12] - The company aims to raise the percentage of internal promotions for retail leadership roles from 60% to 90% [12] - Concerns about staffing have led to a wave of union elections, prompting the company to adopt a new labor model to improve service and employee experience [13][14] Group 3: Leadership and Culture - The Leadership Experience event gathered over 14,000 store leaders, marking the first such event since 2019, highlighting the importance of connection and community [9] - Former chairwoman Mellody Hobson and former CEO Howard Schultz received significant applause, indicating their lasting influence on the company [17][20] - Schultz endorsed Niccol's "back to Starbucks" initiative, encouraging managers to embody the company's core values [22][23]