Starbucks Red Cup Day strike hits 25 U.S. cities

Why it matters: The Red Cup Day strike and rally is the latest flash point in a yearslong labor struggle between the Seattle-based coffee giant and its unionized baristas, coming as the company posted its first global sales increase in seven quarters.

The latest: Starbucks Workers United says the walkout, backed by 92% of its members, will hit an unspecified number of stores in at least 25 U.S. cities.

• Workers are demanding higher pay, steadier hours and relief from heavier workloads they say have grown under CEO Brian Niccol's $500 million "Back to Starbucks" strategy.
• Union leaders say the company hasn't offered new contract proposals in six months.

Yes, but: Starbucks has said it already offers industry-leading pay and benefits and has blamed the union for stalled talks.

• Starbucks spokesperson Jaci Anderson tells Axios the company expects 99% of its more 17,000 company-owned and licensed stores to remain open. About 550 stores are unionized, she said.

State of play: Red Cup Day — when customers get reusable holiday cups — this year features returning drinks like the Peppermint Mocha and Caramel Brûlée Latte as well as new merch and a limited-time Hello Kitty collaboration, writes Axios' Kelly Tyko.

• Other holiday blends, including the Chestnut Praline Latte and Eggnog Latte, will return later in the season.

The bottom line: The strike may test whether momentum under Niccol, who joined last year after leading turnarounds at Chipotle and Taco Bell, can hold through the holiday rush.