Starbucks Faces U.S. Dress-Code Lawsuits, Unveils China Tech Push
Lead Starbucks was hit by class-action lawsuits over its new North American dress code and showcased major digital upgrades at its China Innovation and Technology Center on September 18, 2025.
Nut Graf The lawsuits filed by union-backed employees in Illinois, Colorado and California allege Starbucks violated labor laws by imposing a new uniform policy without reimbursing staff for required attire. Simultaneously, Starbucks China highlighted AI-driven menu boards and customization tools to sharpen its competitive edge in Shenzhen.
Legal Challenge in North America
- On Wednesday, employees in Illinois and Colorado filed class-action suits after Starbucks changed its dress code in May, requiring solid black shirts and specified bottoms while refusing to cover costs of new uniforms. Complaints lodged with California regulators signal potential further litigation if enforcement agencies decline penalties.
- Workers claim the retailer broke state labor statutes by mandating clothing purchases; Starbucks counters that partners received two free shirts and that the policy simplifies branding and improves the customer experience.
Digital Innovation in China
- At the Shenzhen SITC unveiling, Starbucks demonstrated electronic menu boards in over 7,800 stores, AI-based order customization offering 500 flavor-sweetness combinations, and mobile-app enhancements.
- The company reported third-quarter China revenues of $790 million, up 8 percent year-on-year, with same-store sales rising 2 percent-the first positive quarterly gain in six periods.
- CTO Luo Jinpeng emphasized future “technology integrated with humanity” initiatives to expand store concepts and digital-driven customer value.
Additional News in Brief
- Outage reports surfaced mid-day as some customers experienced disruptions with the Starbucks mobile app, prompting social-media buzz and DownDetector alerts.
- In partnership news, Starbucks was confirmed as a founding sponsor of the Los Angeles 2028 Olympics, joining Honda, Comcast and Delta in securing tier-one status for the Games.
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