Don't Wait for the Gold Rush of Unions! Sell Your Restaurants Now & Cash in Before the Bargaining Chips Fall

 

Foodservice Solutions® team including Steven Johnson our Grocerant Guru® wanted to take a look back, and a look forward at the intersection of unions and restaurants in the United States. We think you should do the same.

A Historical Perspective 

The restaurant industry has a long history of unionization, dating back to 1891. The first restaurant union, now known as Unite Here, was established to attract union factory workers. Unionized restaurants were seen as badges of honor, signaling higher quality food and service. However, the decline in manufacturing led to a decrease in restaurant unionization. 

The Resurgence of Unions 

In recent years, there has been a resurgence in unionization in the restaurant industry. High-profile shops have attempted to organize, hoping to narrow the gap in unionization rates. This resurgence is reminiscent of the early 20th century when unionization was common in the industry. 

The Impact of Unions on Restaurants 

While unions can provide benefits such as better wages and job security, they can also be a source of conflict between employees and management. Unions can make it difficult for restaurants to respond to changes in the marketplace. They can also reduce the profitability of an investment, discouraging further investment. 

The Current Restaurant Industry Trends 

The restaurant industry is moving ahead with cautious optimism. Most restaurants are looking to expand digital ordering options, improve loyalty programs, and invest in new POS technology. However, the industry is also facing labor, interest rate, and inflationary headwinds. 

Who's Winning a Larger Share of Stomach

with Unions

The Time to Sell is Now 

If your brand position is weak, slowing, or you are capitulating market share to other newer concepts then; given the resurgence of unions and the potential challenges they pose, coupled with the current industry trends, it might be a strategic move to sell your restaurants now. Selling before the "Gold Rush of Unions" allows you to cash in before the bargaining chips fall. This move could potentially maximize your profits and allow you to invest in other ventures. 

It is time to think about this, the history of unionization in the restaurant industry provides valuable insights for current restaurant owners. As the industry evolves and unions gain momentum, it's crucial to stay ahead of the curve and make strategic decisions that will benefit your business in the long run. 

Don’t over reach. Unions are dynamic, your brand can’t just sit back and wait.  Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

Starbucks Backtracks Edifies Hourly Employees

 

The company that build its brand on respecting its employees by listening to their needs, paid them well, gave them medical insurance even part time works before anyone else is now backtracking on disagreements with employees on the right to form a union.  What company, STARBUCK’S of course.

According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® “all companies forget what got them to where they are today once in a while.  It’s not too late for Starbucks to stand up, and stand with their employees is allowing them if they want to form a union.  It just might be the first step of many in redeveloping the ability to hear and understand the need-set of its current work force.

That said, Starbucks has asked the union representing the employees of 367 units to push through an impasse on contract negotiations and hammer out employment agreements for the 9,100 employees by the end of 2024.

The overture to start negotiations next month came in the form of a letter from Starbucks Chief Partner Officer Sara Kelly to Lynne Fox, president of Workers United, the parent organization of 2-year-old Starbucks Workers United (SWU). The communication was slugged, “Formal Request to Recommence Contract Bargaining.”

A copy of the letter was sent to all employees of unionized Starbucks stores in the United States. It counters the frequent assertions of Workers United that the coffee chain refuses to bargain and is stalling the negotiations purposely to thwart the union. With normal staff turnover, the majorities of baristas who voted to unionize are being eroded in some instances, leaving fewer supporters of outside representation in place. The current employees of 19 organized units have already petitioned the National Labor Relations Board for a vote on whether to maintain union representation.

The regulatory agency has not granted any of the requests, citing alleged unfair practices on Starbucks’ part.

Starbucks said it has asked SWU representatives to meet with chain officials more than 500 times, with negotiation sessions actually scheduled in at least 100 instances. But the talks invariably broke down over disagreements about what format the negotiations should take.  Starbucks has indicated its preference for small closed-door sessions, arguing that the relative privacy will foster candor, trust and the discretion that’s typical of compensation discussions.

But Starbucks Workers United has countered with a stated preference for meetings that are broadcast via Zoom or similar webcast platforms to a wide audience of union members.

The parties have also been at odds over the scope of a contract. The SWU began its organizing campaign with petitions for a union vote in each of three stores in Buffalo, N.Y.  Starbucks countered that it’d prefer one vote for all cafes in the market, arguing that workers often float from one unit to another. A whole-market vote on organizing would also have been harder for the union to win since it would have needed to convince a larger number of workers to vote “yes” for the necessary majority.

The NLRB sided with the union and ruled that a vote had to be held in each unit. That store-by-store policy remains in effect today.

Now SWU is suggesting that negotiating a single contract across all 367 union-certified Starbucks stores would make more sense. Starbucks has pointed out that the NLRB’s decision essentially rules out the possibility, though executives acknowledge the merit of agreeing on a basic contract template and then tailoring it to each union store.

After receiving Starbucks’ letter, Fox issued a statement saying, “We are reviewing it and will respond.”

She added, “We’ve never said no to meeting with Starbucks. Anything that moves bargaining forward in a positive way is most welcome."

Invite Foodservice Solutions® to complete a Grocerant Scorecard or a Grocerant Program Assessment.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant   Call: 253-759-7869 or Email: Steve@FoodserviceSolutions.us