A strike by workers against Starbucks Inc. (NASDAQ: SBUX), which initially closed stores in three cities, has expanded to nine states. That figure could grow, and Starbucks faces a hit to its sales and the possibility of negative public opinion.
24/7 Wall St. Key Points
-
A Starbucks Inc. (NASDAQ: SBUX) workers strike has expanded to nine states.
-
If it continues to grow, the strike could affect the company’s already anemic U.S. results.
-
Take this quiz to see if you’re on track to retire. (sponsored)
Effects of the Strike
Colorado, Missouri, New Jersey, New York, Ohio, and Pennsylvania stores joined the labor action during the weekend, according to CNN. This added to locations in Chicago, Los Angeles, and Seattle. The union representing the workers, Starbucks Workers United, said its actions would close hundreds of stores, but whether that is true is impossible to prove. It also said the strike involved over 10,000 workers, a number that also cannot be confirmed.
The strike is small compared to the number of Starbucks stores, a total of 15,270 in the United States, according to the company’s count at the end of September. Starbucks has not released the worker count for the United States. It has over 346,000 worldwide.
Starbucks management told CNN it has bargained with the union for nine “sessions” and 20 days since April.
There is no way to tell how much the action will hurt Starbucks’ revenue. The current strike is unlikely to make a significant dent, but if the involved store count grows, it could affect Starbucks’ already anemic U.S. results.
What is less clear is whether the worker claims will affect the public. New CEO Brian Niccol wrote to workers and customers that reputation is critical to the company’s success: “Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between ‘to-go’ and ‘for-here’ service.” Some customers will believe that the strike has weakened that message.
Starbucks North American said U.S. sales dropped 6% in the most recently reported quarter. The stock is down 8% this year, against the S&P 500’s 24% increase.
Starbucks Just Paid Investors: Here’s How Much They Received
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
