Starbucks Stock (NASDAQ:SBUX) Plummets as Barista Abuse Complaints Surface - Investors Choke on Their Lattes

Starbucks shares are taking a bitter hit after explosive new allegations from baristas—verbal abuse complaints are boiling over and spooking investors.

Workplace Woes Brew Trouble

Employees are speaking out about harsh treatment, and the market isn't swallowing it well. The NASDAQ ticker SBUX is bleeding red as shareholders question whether the coffee giant's culture is sustainable—or just another frothy facade.

Financial Espresso Shot

When your baristas revolt, your stock gets served a double shot of reality. Maybe next time, focus less on pumpkin spice and more on basic human decency—just a thought from the cynical finance desk.

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Bargaining delegate with Starbucks Workers United, and a five-year barista at Starbucks, Diego Franco noted that the new rules under Niccol have been an exercise in frustration for workers. Franco described that the problem comes back to baristas writing names on cups. The process is throwing a speed bump into getting drinks out the door, and customers are displeased, venting their spleen directly at the baristas themselves.

Meanwhile, Franco noted, management is promptly following up with explanations of everything the baristas did wrong in the process, leaving the baristas themselves despairing. Being abused by customers and constantly critiqued by management leaves little space in which the barista can derive job satisfaction. This in turn is apparently turning some interest back to unionization, a point with which Starbucks has been struggling for some time.

A Union Contract is a Terrible Thing to Find

Meanwhile, the fact that the union is actually gaining ground goes against a pledge that Niccol made in the early days of his new reign as CEO: to reset relations with employees. But that is not going well, as more shops are looking to unionize and a nationwide union contract is not materializing.

Starbucks Workers United was recently described as having “…the fastest-growing union campaign in modern history.” This was despite what reports called “…hundreds of allegations of union-busting, retaliation and unfair labor practices lodged against Starbucks by the union.” Progress with those negotiations has stalled under Niccol’s tenure began about a year ago. It does not help that Niccol is receiving a hefty pay package: the union noted, “It WOULD take less than what Brian made in four months to settle fair contracts with our union.”

Is Starbucks Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 7.35% loss in its share price over the past year, the average SBUX price target of $100.57 per share implies 19.65% upside potential.

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