Daily Newsletter

12 December 2023

Daily Newsletter

12 December 2023

Starbucks to resume talks with union to break deadlock

The coffee chain aims to end more than six months of deadlock with the union that represents more than 9,000 of its workers.

Umesh Ellichipuram December 11 2023

Starbucks is seeking to resume talks with US union Workers United International, which represents its baristas, in January 2024.

The coffee chain aims to end more than six months of deadlock with the union that represents more than 9,000 of its workers.

The resumption of talks could put an end to one of the most high-profile labour disputes in the US in recent years.

Starbucks’ chief partner officer Sara Kelly stated in her letter to Workers United International president Lynne Fox: “We collectively agree: the current impasse should not be acceptable to either of us. It has not helped Starbucks, Workers United or, most importantly, our partners. In this spirit, we are asking for your support and agreement to restart bargaining.”

In response to the letter, Fox stated that: “We’ve never said no to meeting with Starbucks. Anything that moves bargaining forward in a positive way is most welcome.”

The company plans to conduct these meetings without audio or video recording “so that all participants are comfortable with open, honest discussions.”

The union previously expressed its willingness to conduct negotiations via video conference so that more members could take part.

In 2021, Starbucks workers began organising in three stores in the Buffalo area. This has expanded to more than 350 stores.

Starbucks' employees have been urging the company to give a pay rise and address what they describe as understaffing at cafés.

The union is also said to have filed several cases with the National Labor Relations Board, where it complained about unfair labour practices, unjustified firings and the withholding of certain healthcare benefits for organised workers.

In November 2023, Starbucks announced its plan to increase the hourly pay of its employees at its stores in the US by at least 3%, with effect from 1 January 2024.

An increase of at least 4% is being implemented for eligible workers with two to five years of service.

Workers with five or more years of service at Starbucks-operated US stores will be eligible for at least a 5% pay increase.  

Western Europe foodservice market dynamics

The total revenue of the Western European foodservice profit sector totaled $685.3 billion in 2022, having declined at a negative CAGR of 2.4% during 2017–22. In 2022, FSR was the largest foodservice channel, with a value share of 25.9%, followed by QSR. However, the region’s foodservice sector is poised to bounce back as it is forecasted to register a CAGR of 8.1% by 2027.

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