SOC in the News November 30, 2022

Starbucks’ $181 Million in Unused Gift Cards Spurs Labor Group Complaint

A group of unions filed a complaint against Starbucks Corp. with the US Securities and Exchange Commission, asking the agency to investigate how the coffee chain accounts for unused money left on customers’ stored-value cards and accounts.

Starbucks claimed $181 million in revenue from money that wasn’t spent on gift cards and loyalty accounts in fiscal 2021, an uptick from about $145 million the previous year. While that’s just a small percentage of profit and revenue, the proportion of income coming from unused company credit has grown in recent years, according to the complaint that was filed Wednesday by the Strategic Organizing Center.

Read the full report at Bloomberg.

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