Over a thousand unionized Starbucks employees are set to strike at 65 locations across the United States on Thursday, voicing their dissatisfaction over stalled labor negotiations with the company.

The strike is strategically timed to coincide with Starbucks’ Red Cup Day, traditionally one of the café chain’s busiest occasions. Since 2018, Starbucks has marked this day by distributing complimentary reusable cups to patrons who purchase a holiday-themed beverage.

Starbucks Workers United, the union representing the baristas, announced that the strike would affect stores in 45 cities, including major hubs such as New York, Philadelphia, Minneapolis, San Diego, St. Louis, Dallas, Columbus, and Seattle, where Starbucks is headquartered. While the strike’s conclusion remains undetermined, additional stores are poised to join if the company fails to negotiate a contract with the union, according to organizers.

Starbucks, however, assured that most of its U.S. outlets would continue to operate normally on Thursday. The company boasts 10,000 company-owned stores nationwide, complemented by 7,000 licensed locations in venues like grocery stores and airports.

Currently, approximately 550 company-owned Starbucks stores in the U.S. are unionized. Although more locations have opted to unionize, Starbucks shut down 59 unionized stores in September, citing a broad reorganization effort.

Here’s what’s behind the strike.

A stalled contract agreement

Striking workers say they’re protesting because Starbucks has yet to reach a contract agreement with the union. Starbucks workers first voted to unionize at a store in Buffalo in 2021. In December 2023, Starbucks vowed to finalize an agreement by the end of 2024. But in August of last year, the company ousted Laxman Narasimhan, the CEO who made that promise. The union said progress has stalled under Brian Niccol, the company’s current chairman and CEO.

Workers want higher pay, better hours

Workers say they’re seeking better hours and improved staffing in stores, where they say long customer wait times are routine. They say too many workers aren’t getting the required 20 hours per week they need before Starbucks’ benefits kick in. They also want higher pay, pointing out that executives like Niccol are making millions.

The union also wants the company to resolve hundreds of unfair labor practice charges filed by workers, who say the company has fired baristas in retaliation for unionizing and has failed to bargain over changes in policy that workers must enforce, like its decision earlier this year to limit restroom use to paying customers.

Starbucks stands by its wages and benefits

Starbucks says it offers the best wage and benefit package in retail, worth an average of $30 per hour. Among the company’s benefits are up to 18 weeks of paid family leave and 100% tuition coverage for a four-year college degree. In a letter to employees last week, Starbucks’ Chief Partner Officer Sara Kelly said the union walked away from the bargaining table in the spring.

Kelly said Starbucks remained ready to talk and “believes we can move quickly to a reasonable deal.” Kelly also said surveys showed that most employees like working for the company, and its barista turnover rates are half the industry average.

Limited locations with high visibility

Unionized workers have gone on strike at Starbucks before. In 2022 and 2023, workers walked off the job on Red Cup Day. Last year, a five-day strike ahead of Christmas closed 59 U.S. stores. Each time, Starbucks said the disruption to its operations was minimal. Starbucks United said the new strike is open-ended and could spread to many more unionized locations.

The number of non-union Starbucks locations dwarfs the number of unionized ones. But Todd Vachon, a union expert at the Rutgers School of Management and Labor Relations, said any strike could be highly visible and educate the public on baristas’ concerns.

Unlike manufacturers, Vachon said, retail industries depend on the connection between their employees and their customers. That makes shaming a potentially powerful weapon in the union’s arsenal, he said.

Improving sales

Starbucks’ same-store sales, or sales at locations open at least a year, rose 1% in the July-September period. It was the first time in nearly two years that the company had posted an increase. In his first year at the company, Niccol set new hospitality standards, redesigned stores to be cozier and more welcoming, and adjusted staffing levels to better handle peak hours.

Starbucks also is trying to prioritize in-store orders over mobile ones. Last week, the company’s holiday drink rollout in the U.S. was so successful that it almost immediately sold out of its glass Bearista cup. Starbucks said demand for the cup exceeded its expectations, but it wouldn’t say if the Bearista will return before the holidays are over.