More than 1,000 Starbucks unionized baristas in over 40 U.S. cities have initiated an indefinite strike to secure a collective bargaining agreement for higher pay and increased staffing levels. The walkout, starting with 65 stores, coincides with the Red Cup Day event, with minimal disruptions reported so far. The union, representing employees at about 550 stores, aims to make this strike the largest and longest in Starbucks history, rallying in various cities including Seattle, New York, and Philadelphia.

Talks between the union and the company have stalled since 2024, prompting the strike as negotiations have regressed, resulting in rejected proposals and demands for better working conditions and fair treatment. Investors are closely monitoring the situation, urging both parties to come to an agreement as the market impact continues to be felt. Past protests on Red Cup Day have led to similar actions in previous years, highlighting ongoing issues within the company.