Drip, Drip, Drip: Lessons From the Starbucks Union Movement

What is the Starbucks unionization movement?

The Starbucks unionization movement is a steadily evolving push among baristas across the United States to spark change and hold their corporate superiors accountable. Though the Starbucks Corporation calls its frontline workers its “partners,” the feeling is not mutual among the company’s minimum-wage staff. 

In August 2021, representatives from Starbucks stores in Buffalo, New York, came together to ignite change in the corporation and created Starbucks Workers United (SBWU) — a worker-led unionizing effort. Shortly after, in December, the Starbucks location on Elmwood Avenue in Buffalo became the first to unionize in a 19-8 vote. 

Employees, continuing to feel underappreciated and badly treated, have unionized by the thousands. Today, more than 525 Starbucks stores across 45 states and Washington, D.C., have unionized. The Starbucks union movement has amassed over 11,000 baristas nationwide, working together to create a better and more just workplace, according to SBWU.

David Fish, partner and civil and criminal trial attorney at Romano Law, highlighted a lesson for workers from the Starbucks Workers United movement. “Workers should prioritize clear communication, organization and a willingness to engage in constructive dialogue with their employer,” said Fish. “The first step is for workers to unify around shared concerns and document specific grievances, such as inadequate safety measures, understaffing or disparities in compensation. Building a cohesive platform of concerns ensures that workers present a consistent and compelling case during negotiations.”

What can business owners learn from the Starbucks unionization movement?

While many business owners might think this movement doesn’t apply to them, there are some key takeaways they can learn from what’s happening at Starbucks. Plus, even companies with smaller staffs might find their employees banding together for better pay and working conditions. It takes only two people to form a union, so you’ll want to keep these things in mind before and after workers start banding together.

You must be competitive in the marketplace. 

To prevent discontentment and frustration, business owners should offer competitive employee compensation packages, including reasonable pay, flexible work hours, comprehensive benefits and cost-of-living adjustments. One initial positive effect at the first unionized Starbucks store in Buffalo was a pay raise to $17 an hour. However, workers were quick to point out that although their wages had increased, their hours had been cut. This interfered with staff members’ eligibility to participate in Starbucks’ health insurance due to a policy that employees had to work a minimum of 20 hours a week to qualify. As a business owner, you need to make your benefits fair and accessible to all workers without limiting conditions. Otherwise, you’ll just be trading one grievance for another.

Paul Koenigsberg, managing partner at Koenigsberg & Associates, stressed the importance of discussing the genuine concerns of employees that may be encouraging them to unionize. “If you can decide to address some of those upfront, that would be the best move,” explained Koenigsberg. “It doesn’t just give favor to the workers. An argument can be made that it just as heavily favors the business because it has the potential to help them become more competitive in the labor market.”

You have to ensure appropriate working standards for employees.

During the pandemic, some Starbucks workers felt their safety was compromised and asserted that the company pulled back on COVID-19 restrictions too early and too aggressively. The push toward unionizing helped address such safety concerns and working standards. 

Regardless of the industry, business owners should ensure acceptable standards for workplace conditions to keep workers safe and encourage them to work effectively and efficiently. To improve conditions, businesses may need to pay for renovations or new tools and equipment or invest in appropriate employee training programs. In addition to benefiting workers, these best practices can help you reap a greater return on investment in the long term.

You should maintain open communication with workers.

Amid ongoing unionization efforts, Starbucks’ company-wide and store-level communication with employees hasn’t been consistent or all that empathetic, thereby exacerbating issues between the corporation and its staff. No matter the current level of employee satisfaction, business owners must have open communication with their workers to ensure transparency and accountability. “Rifts between employers and employees only become worse in the absence of transparency,” explained Koenigsberg. “As an employer, you should be willing to listen to your employee’s concerns and try to create win-win solutions for everyone.” 

If you have employees seeking to unionize, you should be willing to discuss the issues at hand and consider various compromises or solutions to their concerns. Careful communication can go a long way and this critical step has the potential to improve turnover rates. 

You should never try to halt union efforts that are in effect.

Business owners should never attempt to break apart unionizing efforts that are already underway. Not only will this frustrate workers more, but it is also considered illegal, according to the NLRB’s policies for the protection of employee rights. This is the mistake Starbucks leaders made when an appeal was filed under Starbucks Workers United. 

The corporation allegedly pushed management at various stores to coax employees into dropping their union petitions. In response to this and other alleged union-busting actions, such as firing workers who engaged in protests and spoke about Starbucks publicly, the NLRB has filed complaints against store owners in several states, according to NLRB records. Most recently, the NLRB rejected Starbucks’ appeal in December 2024 and deemed the corporation’s firing of two Philadelphia baristas who sought unionization illegal.

Business owners who follow in Starbucks’ footsteps in this regard could also find themselves on the receiving end of discriminatory employment claims or wrongful termination lawsuits. “For businesses, the key lesson is that dismissing union efforts often fuels discontent, while genuine engagement with workers fosters trust, productivity and a stronger brand reputation,” said Jamie E. Wright, a trial attorney and principal of J. Wright Law Group. “Successful labor relations hinge on mutual respect and a commitment to shared growth.”

You should invest in online payment apps and other new technology.

The Starbucks union has presented the company’s top business executives with various proposals, one of which calls for employees to collect credit card tips. As a side effect of the pandemic, the use of online payment applications rose in popularity and while baristas employed at the time were working harder than ever and facing health risks, they weren’t getting to enjoy any gratuity if customers paid by credit card. 

While this situation may, on the surface, seem unique to Starbucks, the reality is that consumers’ preferred payment methods are changing with the advent of digital wallets, online payment apps and other technology. As such, business owners need to keep up with technological trends both to keep customers happy and to ensure employees are being compensated accordingly.

You should still focus on business growth planning.

While unionization efforts may be distracting, business owners can’t let personnel issues force everything else to take a back seat. Even as unionization spreads from store to store, Starbucks is still focused on growth. Although Starbucks originally planned to begin 2025 with its goal of opening 17,000 new store locations within the next five years, the corporation has since put that plan on the back burner to focus on recuperating lost sales and customers. A reported 6 percent of sales were lost in Q4 2024 from U.S. stores, according to Starbucks.

Starbucks hasn’t lost sight of its larger business plans and is taking steps to ensure its long-term future. Similarly, you should set the foundation for your business’s longevity now. That may involve obtaining adequate financing for your company and paying off any accrued personal debts to increase credit scores and make it easier to obtain loans. This way, even if your attention is increasingly taken up by snowballing employee issues, at least you’ll be financially prepared to make the changes your business needs. [See our picks for the best small business loans and financing options.]

You need to improve your online reputation.

Although Starbucks has taken a hit in the local and national press as media outlets cover the continuing unionization efforts, the company remains determined to generate positive publicity and focus on reputation management efforts. In September 2024, Brian Niccol joined the company as chairman and CEO to essentially turn Starbucks around. Niccol is known for his transformative influence as CEO of Chipotle, a position he held since 2018. 

While most small businesses can’t achieve the kind of public relations a corporation like Starbucks gets, they can employ online reputation management services and use their websites to highlight company values. Spelling out plans to improve work culture and current conditions and what you’re doing to benefit employees and customers can help influence internal and external sentiment about your business. However, it’s crucial to follow through on what you promise. Announcing changes and then not implementing them will only further encourage employees to unionize and, in turn, hurt your reputation.

Sean Peek contributed to this article.