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SEIU drops its front in unionizing Starbucks

One of the nation's most powerful labor forces is no longer hiding its role in organizing the chain.


Starbucks speaks out on unionization, spelling out some of the downsides for employees

In the first chainwide public communication in nearly two months, the coffee giant gives its partners some food for thought.

A huge percentage of the business at major quick-service restaurants, including McDonald’s, Starbucks and KFC, is coming through apps, delivery and kiosks.

The Bottom Line: While the unionization effort has spread to dozens of locations across the country, analysts’ attention this week was focused elsewhere.

The coffee giant is getting more business through convenience channels, is selling more cold beverages and has a thriving loyalty program.

Sixteen more stores have just petitioned authorities to schedule union votes, a big leap from the prior rate of about five per week. Meanwhile, two already-unionized stores are beginning the collective bargaining process.

The coffee chain finished the year with strong sales, but higher charges for supplies, wages and training put a lid on profitability. The company is raising prices and cutting overhead.

His total pay package topped $20 million in 2021, up 39% over 2020, as the company’s sales and stock price strength returned.

A big union's penetration of Starbucks after 30 years of failed efforts to organize restaurant chains has largely been shrugged off as one brand's problem, and a minor one at that. That under-appreciation could be a big mistake.

Giants like Starbucks and Domino’s are building more drive-thrus while regional drive-thru chains have exploded. And consumers are flocking to them.

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