Will Starbucks Strikes Impact CEO Brian Niccol’s Plans?

As Starbucks pushes ahead with its efforts to revitalise its brand, the company faces a significant challenge from its workforce. 

Unionised baristas are staging a series of walkouts across the US, with the latest strike planned for 13 November, coinciding with Starbucks' major "Red Cup Day" promotion. 

The day, a key event to kickstart the holiday season, is now overshadowed by a brewing labour dispute.

According to the BBC, the strike is expected to hit stores in at least 25 cities, marking the third national work stoppage by Starbucks Workers United in the past year. 

Workers are protesting for better pay, more manageable hours and improved staffing levels.

In total, over 1,000 baristas are set to walk off the job, part of a growing wave of labour unrest that began when employees first voted to unionise Starbucks cafes in 2021.

The union has been negotiating for months, but contract discussions have reached an impasse. 

Ninety-two percent of workers voted in favour of a strike if no progress was made towards finalising a contract, according to CBS News. 

“The ball is in Starbucks' court,” said spokesperson for the union and former employee Michell Eisen in a statement, referencing the lack of movement on the company's offer.

Restoring the company

The walkouts come at a critical time for Starbucks, which is still grappling with a broader turnaround strategy launched by CEO Brian Niccol. 

Since taking over in September 2024, the CEO, known for leading successful turnarounds at Taco Bell and Chipotle, has focused on streamlining operations, simplifying the company’s menu and improving the customer experience. 

His ‘Back to Starbucks’ strategy is aimed at restoring the brand's appeal after it suffered from customer complaints about long wait times, complex menus and declining service quality.

However, while Brian's plans have resulted in some positive changes, including a 1% growth in global sales in the most recent quarter, his leadership has faced mounting criticism from labour advocates. 

Workers argue that the company’s focus on efficiency and speed is coming at the expense of their wellbeing. 

"Every single day at this company, as of recently, has been very, very difficult to be a barista," said Michelle, according to the BBC.

As part of his strategy, Brian has invested in new technologies, like voice ordering and AI-powered tools to improve operational speed, alongside refurbishing stores and reintroducing features like hand-written notes and ceramic mugs. 

While these moves are aimed at improving the customer experience, they have added to the pressure on employees. 

"You should not be evolving to the point of running your workers to the ground," Eisen added.

In response to the strikes, Starbucks has reiterated its commitment to negotiating. Jaci Anderson, a Starbucks spokesperson said: “When they’re ready to come back, we’re ready to talk.”

A new strategy

Through his first year as CEO, Brian has admitted to making mistakes. 

Speaking at the Salesforce Dreamforce conference in October 2025, he said: “We needed to get into conversation from day one so people understood, transparently, what we are trying to do with Starbucks,” admitting that the initial strategy rollout had been mismanaged.

The ‘Back to Starbucks’ strategy includes major overhauls across key areas like customer experience, employee support and operational efficiency. 

Brian said the plan is a commitment towards “enduring identity” to then “drive innovation”.

The strain on Starbucks' reputation has been particularly pronounced among workers, many of whom feel excluded from the company's transformation plan. 

The BBC reports that according to experts, the company's failure to engage with employees in meaningful ways could jeopardise its long-term success.