When coffee giant Starbucks (SBUX) announced its plans to shutter a lot of stores, it likely should not have been a surprise to hear the union did not take it well. As it turns out, several union shops got hit in the closure efforts. And reports note that the unions are already planning to take the fight to Starbucks going forward, as best they can. Investors seemed happy about this, though, as Starbucks shares gained nearly 1.5% in Monday afternoon’s trading.
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Over the weekend, reports note, two Los Angeles-area coffee shops saw employees demonstrate. The demonstrations were staged in a bid to get Starbucks back to the negotiating table and try to get contract talks going once more. The previous talks have been stalled for most of the year, a point that likely weighs heavily on the workers given the growing number of store closures so far.
Hailie Muro, a shift supervisor at the Miracle Mile location on Wilshire Boulevard in California, noted “We are trying to let Starbucks know that our voices should be heard and should be valued.” This stance got a little extra iron in its spine via Michelle Eisen, former Starbucks employee and current union rep, who noted, “This is a warning shot. Workers aren’t going to settle for nothing.” Workers are increasingly concerned about things like uncompensated dress code rules and growing lists of things to do in less time. Starbucks’ response, meanwhile, has been quiet but brutal.
Union Shops Closed
There is no concrete plan to close union shops, of course. But a recent sweep of the news suggests that union shops are on the block. A report out of Cincinnati noted that the city’s first unionized Starbucks was on the list of planned store closures. Starbucks representatives noted that the union representation was not a factor in the decision to close, however.
Meanwhile, the Starbucks on Castro Street in San Francisco met with a similar fate. Interestingly, it was also the first Starbucks in San Francisco to unionize, reports noted. Though, again, unionization may not have been a factor here; Starbucks closed at least six different shops in the San Francisco area just in the last year.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, six Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 14.46% loss in its share price over the past year, the average SBUX price target of $102.10 per share implies 20.55% upside potential.
