More than 30 people in Philadelphia lost their jobs after they decided to unionize the coffeeshop where they worked, OCF Coffee House. The coffeeshop was not able to sustain the additional expense, and it closed its doors, it just couldn’t handle to be a unionized shop.
The coffee shop business is a highly competitive business with very low margins. Once you charge more than $4.00 for a coffee, people go some where else or they start making their own coffee at home. The average American now pays $3.08 for a regular cup of coffee — a 43% increase in 20 years. The data included the national average for regular tea is $3.74, $5.14 for a cold brew and $5.46 for a latte in 2024.
The closing of the three coffee house was a big loss for the community, for the city, for its employees and for the owners.
I think the employees should have reflected a little bit better about the consequences of their actions.
These are educated young people, who were conscious of the low pay involved in working as a barista and they applied for a the job anyway. They were also aware of the difficult financial situation of the coffee house, and they decided to add to the expenses of the coffee house by unionizing.
For small businesses or those operating on thin margins, union increased costs can lead to bankruptcies.
This business, OCF Coffee House, was already operating at a loss. An increase in costs—whether from higher wages, benefits, or other union-related expenses pushed it into an unsustainable financial position.
On the bright side, Maybe, since they already know the business of running a coffee house, maybe they could put some money together, rent a space, buy a couple of coffee machines, buy or rent some tables and chairs and run a coffee house of their own. Take the financial risk that the owner was taking.
My tip is this: Don’t unionize. If you don’t like a job, just don’t take it, or move some where. If you want to earn more money get some additional training, gain some skills and get a higher paying job. All the employees on this video are young young people with a life ahead of them. I am sure that with some training they can find something better for themself and leave the coffee barista jobs for high school students who are transitioning into adulthood.
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