Workers at Starbucks outlets in Seattle, Chicago, and New York went on strike with just a few days left until Christmas 2025. Starbucks has offered a 1.5% raise which workers say does not even keep up with inflation. How will the Starbucks strike affect your morning latte, and will it affect the price of your coffee going forward? It occurs to us that the folks most responsible for getting you a good cup of coffee are the ones who are paid the least. Coffee farmers and the folks who brew your Java are at opposite ends of the coffee supply chain and get the least while the “middlemen” always seem to get a healthier cut!
Starbucks Strike
According to CBS News workers at more than 500 Starbucks outlets have voted to unionize, are in negotiations with Starbucks, are unhappy with Starbucks’ contract offers and are striking. It should be noted that Starbucks has more than 10,000 outlets in the USA. Thus only five percent of Starbucks stores are involved in the strike. Issues include unfair labor practices and failure to come to an agreement in 2024 as promised by the company. The biggest issue, however, is the paltry wage increase being offered by the company at a time when wagers are rising across virtually all industries and the economy is humming along in good shape. Meanwhile the Starbucks CEO is expected to make $100 million in 2024! The company notes that they already pay an average of $18 an hour and that benefits include paid family leave, free college tuition, and health care. They contend that total benefits average $30 a hour for a barista who works at least 20 hours a week.
Working at Starbucks
The average income for a Starbucks barista is $25,000 a year and Starbucks pays a fourth of its yearly revenue in salaries. As a point of comparison the average worker in the USA makes $68,000 a year. However, the average Starbucks worker is 23 or 24 years old. The average weekly income in this age group is $757 which comes to $37,850 for a fifty week working year. The point is that Starbucks workers not only make less than the national average but also make less than the average for the age group of their workers. Another point of comparison is that entry level restaurant workers average $29,000 a year and the average salary is $39,000. Those who have the most experience can make closer to $70,000 a year.
Work Experience at Starbucks vs Starbucks Business Prospects
Despite the fact that some Starbucks stores are unionized and are on strike, as a rule Starbucks workers give the job a high rating for job satisfaction. Part of this is the fact that the benefits are considered good. Job satisfaction at Starbucks ranks in the top 20% of companies of similar size. Looking at the company point of view, Starbucks has issues that it needs to deal with. One of these we wrote about, which is the huge number of drink options for a company that sells coffee. Waits can be long, which leads to unhappy customers. The company has spent a lot of time and effort on its management team but seems to have overlooked the folks who make the daily business work, the baristas. In the end we expect to see more Starbucks stores unionize and more strikes!