Starbucks is counting on a sweet Halloween treat to cast a magic spell to keep its turnaround momentum brewing. Showcased by Salem the cat from Sabrina the Teenage Witch, the Black Cat Frappuccino was on offer through Halloween at $6.50 a cup. It is the latest example of menu innovation driving customer traffic under CEO Brian Niccol’s “Back to Starbucks” turnaround plan.

The launch comes as Starbucks enters the critical holiday season with sales momentum building, stores undergoing extensive refreshes and investors waiting to see if the company can sustain progress, even as contract negotiations with unionized workers remain at a standstill and labor tensions persist.

Seasonal Drinks Drive Traffic

Seasonal limited-time offerings, like Peppermint Mocha and Pumpkin Spice Latte, have long been Starbucks’ leading traffic drivers, generating social media buzz and encouraging repeat visits. That strategy worked wonders during last holiday season. 

On Red Cup Day 2025, when Starbucks introduced its annual collection of holiday beverages and treats and Starbucks Workers United launched its “Red Cup Rebellion” strike, Niccol reported it was the biggest sales day ever in North America. Foot traffic data from Placer.ai backed that up, with customer visits running nearly 45% ahead of the year’s daily average. 

With holiday 2025 tailwinds at the company’s back, Niccol declared “Starbucks is back” at 2026 Investor Day and the year’s results haven’t proved him wrong. After comparable store sales declined 2% in North America in 2025, comp sales rose 4% in first quarter that included holiday 2025 and reached 7.9% growth during the fourth quarter ending September 27. It closed the year with North America revenues ahead by 5.6% and comp sales up 6.6% overall. Starbucks generates over 75% of total sales here—$28.9 billion out of a total $37.9 billion globally.

Labor Headwinds Remain

Starbucks will introduce its 2026 holiday menu and merchandise selections on November 5, but the launch won’t coincide with the company’s annual Red Cup Day promotion. That will happen on Tuesday, November 17. 

Last year’s Red Cup Day celebration corresponded with Starbucks Workers United’s strike that expanded throughout the holiday season as unionized barista pressed for an acceptable contract. The union now represents some 12,000 baristas in nearly 700 Starbucks locations nationwide—a mere fraction of the 10,000-plus company-operated U.S. stores.

The boycott campaign attracted national attention and support from labor activists and progressive political figures with Senator Bernie Sanders and then-mayoral candidate Zohran Mamdani joining the picket lines. Yet despite widespread media coverage, the labor action failed to disrupt Starbucks’ momentum.

Nearly a year later, contract negotiations remain unresolved. While SBWU has not announced new holiday-related initiatives, its boycott campaign continues to gain support. Philadelphia and Atlanta City Councils along with St. Louis Board of Alderman, have voted to back the Starbucks boycott until a contract is signed. 

The AFL-CIO, representing 65 international unions and nearly 15 million union members, has endorsed the movement, as well as numerous local union groups, including various teacher’s unions, the Young Democratic Socialist of America, American Federation of State, County and Municipal Employees and the Association of Flight Attendants.

Stain On Starbucks’ Reputation?

Whether strained labor relations will translate into lasting reputational damage remains an open question, but given the fractured political climate, tricks could be waiting on the other side of this Halloween.

“Any repeat of the so-called Red Cup Rebellion from last year could be a lurking speed bump on year-end sales and corporate reputation,” shared Stephen Hahn, chief reputation and strategy officer at RepTrak. 

“Sustaining sales momentum for Starbucks is dependent on earning a strong reputation, given that it’s highly correlated with an intent to purchase. But equally, reputation is also tied to a behavioral intent of being willing to work for Starbucks,” he continued.

So far, Starbucks appears to be maintaining its position with employees despite the ongoing labor dispute.  The company reports the lowest employee turnover in the industry and says that more than one million people apply to work at Starbucks every year. 

However, SBWU paints a different picture. “Every day across the U.S., we’re dealing with issues like short staffing, unpredictable scheduling, low pay, rising healthcare costs, harassment, broken equipment, and unfair discipline,” it states. 

And the recent news of 250 store closures in September, followed by over 600 closed the same time last year, could be a black spot against the company as contract negotiations continue with no end in sight. 

Maintaining Momentum

Meanwhile, Starbucks continues pressing ahead with investments designed to improve both the customer and employee experience. It’s on track to complete 1,500 “uplifts” in U.S. company-operated stores by the end of the fiscal year, which includes 25,000 more seats in stores. 

The “Green Apron Service” model, coupled with new initiatives to better sequence orders across in-store, mobile, drive thru and delivery, has improved service times. The company continues to lean into menu updates, like the Black Cat Frappuccino and Energy Refreshers, while on the barista side, it expanded incentive programs and tipping opportunities. 

“Back to Starbucks started as a turnaround plan,” Niccol said a two-year update on progress.  “It helped us refocus the company, fix what needed fixing and rebuild the operating foundation of the business. Today, it is our roadmap to deliver the very best of Starbucks for every customer, partner and shareholder.” 

The Black Cat Frappuccino may be only a seasonal novelty, but its launch arrives at an important moment for the company. “The question still remains as to whether a sustained reputation recovery will follow the sales increase,” Hahn observed. “The answer is likely yes—but it assumes a continued commitment by Starbucks to continually enhance the product and workplace experience as two key drivers of reputation.”

As Starbucks heads into the holiday season, the question is no longer whether Niccol’s turnaround strategy is working. The biggest test is whether menu innovation, store investments and operational improvements can sustain that momentum—Niccol is aiming for 5% or greater consolidated net revenue growth in fiscal 2028—while labor tensions and contract negotiations remain unresolved in the background.