Happy Holidays, Team!
As we navigate this busy holiday season, I want to take a moment to connect with each of you, our incredible green apron partners, store managers, district managers, and everyone who contributes to the Starbucks experience. Your dedication and the connections you create are the heart of what makes Starbucks special, especially during this meaningful time of year for our customers and communities. Thank you for everything you do.
Following up on my previous communication regarding bargaining with Workers United, I want to provide a clear update on recent store operations.
Current Status of Starbucks Stores
Over the past few days, a very small fraction of our Starbucks locations experienced temporary closures – about 60 stores in total as of today. This was a direct result of actions initiated by Workers United.
It’s important to emphasize that the vast majority of Starbucks stores across the United States – over 10,000 company-operated locations – have remained open and are serving customers enthusiastically throughout the holidays. These Starbucks stores for partners continue to be vibrant hubs, offering the familiar Starbucks experience.
In fact, we’ve seen some stores that were temporarily closed earlier in the weekend already reopening as our partners are eager to return to work and serve our customers.
Anticipating the Next Steps
We anticipate that on Christmas Eve, Workers United may attempt to instigate further store closures, possibly claiming a widespread strike impacting “hundreds of stores in dozens of cities.”
However, it’s crucial to maintain perspective. The reality is that we expect the impact on our operations to remain minimal. The overwhelming majority – 97-99% – of our Starbucks stores for partners are projected to continue operating normally, providing uninterrupted service and the Starbucks experience our customers expect and love during the holiday season. The public narrative might not fully reflect this context, but we want to ensure you, our partners, are fully informed.
Our Unwavering Commitment to Starbucks Partners
Our commitment to you, our partners, is steadfast. We deeply value your contributions and continuously invest in enhancing your experience at Starbucks. Over the last three years, we’ve directed over $3 billion into the Partner Experience.
Starbucks is proud to offer a competitive average pay of over $18 per hour, coupled with industry-leading benefits. When you combine average pay and benefits, it equates to an average total value of $30 per hour for baristas working 20 hours or more per week.
Significantly, most of our hourly partners work an average of over 20 hours weekly, ensuring a large majority are eligible for our comprehensive benefits package. These benefits include robust healthcare coverage, 100% tuition coverage for a bachelor’s degree through Arizona State University, paid family leave, and Starbucks stock grants. This holistic approach to pay and benefits is unmatched in the retail sector.
Our commitment is reflected in our partner retention. Starbucks boasts one of the lowest turnover rates in the retail industry, indicating that partners choose to build their careers and futures with Starbucks more often than with other retailers.
In contrast, the union’s proposals include demands for an immediate 64% increase in the minimum wage for hourly partners, escalating to a 77% increase over a three-year contract. These proposals are financially unsustainable, particularly when considered against the backdrop of our ongoing investments in our comprehensive benefits package – the very elements that distinguish Starbucks as a leading employer and make us all proud to be part of this company.
While the union chose to step away from bargaining discussions last week, our invitation to negotiate remains open. We are ready to resume discussions and find a mutually agreeable path forward as soon as the union returns to the bargaining table.
We are committed to keeping you informed every step of the way. Thank you again for your extraordinary dedication to delivering the Starbucks Experience. Wishing you and yours a truly wonderful holiday season.
Warmly,
Sara Kelly
Executive Vice President and Chief Partner Officer
