It is no secret that Starbucks (SBUX) has been struggling to win back customers. It faced controversy last year over hiking its menu prices and suffered a boycott from consumers over alleged political alliances in the Gaza war.
In its second-quarter earnings report for fiscal year 2025, Starbucks revealed that its U.S. comparable store sales dipped by 1% year-over-year as transactions declined by 4% during the quarter. This contributed to Starbucks’ U.S. operating income decreasing by a whopping 35%.
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Amid waning consumer demand, Starbucks CEO Brian Niccol doubled down on the company’s “Back to Starbucks” plan, which aims to reestablish Starbucks as a community coffeehouse.
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“My optimism has turned into confidence that our Back to Starbucks plan is the right strategy to turn the business around and to unlock opportunities ahead,” said Niccol during an earnings call last month.
The plan is focused on improving the customer experience through recent changes such as delivering orders to customers in “four minutes or less,” updating store designs, and serving coffee in ceramic mugs for customers who want to sit inside stores.
Starbucks workers fight back against a controversial change
However, another change that Starbucks recently announced as part of the strategy is rubbing some of its employees the wrong way.
Last month, Starbucks revealed that starting May 12, it will require workers to adhere to a new in-store dress code. The dress code instructs workers to wear a green apron paired with “any solid black short and long-sleeved crewneck, collared, or button-up shirts and any shade of khaki, black, or blue denim bottoms,” according to an April 14 press release.
While Starbucks said the new dress code will help it deliver “a more consistent coffeehouse experience” that will allow it to focus more on crafting beverages, its store baristas beg to differ.
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Starbucks Workers United, which represents baristas at roughly 570 Starbucks locations, has filed a complaint with the National Labor Relations Board, claiming that the coffeehouse’s decision to implement a new dress code amid labor contract negotiations violates the law, according to a recent report from Bloomberg.
The union also said in the complaint that the dress code “materially differed” from a tentative agreement it reached with Starbucks during negotiations.
“Our union rejects this dress code — and legally, Starbucks cannot enforce policy changes in union stores without bargaining with workers first,” said Starbucks Workers United in a post on social media platform X.
Starbucks workers conduct a major strike
Hundreds of Starbucks baristas have already staged walkouts at over 50 U.S. stores to protest the new dress code.
Baristas claim that the new policy will not improve store operations and will burden workers who are struggling financially, as they will need to spend money on new clothes to follow the dress code.
Across the country, baristas are walking out and pushing back on Starbucks's illegally implemented policy change in union stores.
Workers shouldn't need to spend $$$ out-of-pocket to replace perfectly good shirts, pants, & shoes when we’re already struggling to get by! pic.twitter.com/dQQ7bhcCFF
— Starbucks Workers United (@SBWorkersUnited) May 13, 2025
In a statement to Bloomberg, Starbucks emphasized that the union represents less than 5% of its workforce and said that “thousands” of workers have shown up to work.
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It also said that the dress code is “simple: wear a black shirt — either your own or one we provide.” In addition, Starbucks urged the union to continue negotiations “to finalize a reasonable contract.”
This is not the first time Stabucks has butted heads with the union, which was first organized in 2021. In December last year, Starbucks faced a strike from over 5,000 baristas at 300 of its U.S. stores, which lasted for a few days.
The striking workers were represented by Starbucks Workers United, and they were protesting “to win fair raises, benefits and staffing, protest unfair labor practices, and resolve outstanding litigation with Starbucks,” according to the union’s website. It also advocated for worker protections that ensure their safety in stores.
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