Will Starbucks Still Have Good Revenue Despite Unions?

In December of 2021, a Starbucks, located in Buffalo, New York, became the first in the company’s history to unionize. The event happened even though the coffee chain did not want to publicize it. Although this is not going over the national news, it could have a significant impact on the company’s bottom line, which investors should be careful of. Starbucks has over 8 thousand stores in the US, which makes it the largest coffee chain in the world. Its employee count has continuously grown as the company opens more stores. Due to the number of employees, Starbucks could face a small increase in its per-worker costs. The coffee itself costs the company very little to make.

Starbucks

There’s a chance that a large portion of Starbucks’ US stores eventually unionizes, which could affect the company’s pricing power. In its most recent fiscal year, Starbucks’ revenue grew by 9%. If labor costs continue to increase at a faster pace, it could threaten the company’s profitability. It could also affect the store traffic. The company’s massive labor pool could become an issue that investors should carefully monitor.