Iconic Candy Chain Closes Flagship Store Because Of Labor Issues

Iconic Ghirardelli Chocolate Company closed its flagship retail store in San Francisco as part of a union contract dispute work stoppage.

The chocolate candy company closed its Original Ghirardelli Chocolate and Ice Cream Shop at 900 North Point at Ghirardelli Square on July 30 during a three-day strike over a union contract dispute related to healthcare insurance, according to SFGate.

The Ghirardelli workers' union, Unite Here Local 2, has been in contract negotiations for over a year with the company and accused it of bargaining in bad faith by not providing information related to a healthcare surcharge customers must pay on purchases. The union wants to know how much of the surcharge actually is paid toward covering employees' health insurance.

Employees launch three-day strike

Workers set up a picket line outside the store until it closed on July 30, then moved the picketing operations outside two other of the company's Ghirardelli Square candy shops.

The union claims that Ghirardelli is proposing an alternative health insurance plan that would provide less coverage for health costs than the current union-backed health insurance plan.

Healthcare costs for union employees could rise significantly, union spokesperson Sonja Karabel told SFGate.

An employee who relies on the healthcare plan regularly was concerned with the changes.

"I need it to maintain my medicine every day," worker Leah Urbana said.

Workers picket for good health insurance

"They're fighting to preserve their good health insurance, and they're fighting against a plan that could leave them with thousands of dollars in medical bills or worse," according to Karabel.

The work stoppage is the first time since 1984 that all of the shop's workers have gone on strike, Karabel said.

A spokesperson for Ghirardelli did not immediately respond to a request for comment from TheStreet.

Company generates $1 billion in revenue

Ghirardelli hit a milestone in 2025, as it for the first time generated over $1 billion in net trade sales revenue for the year, according to a LinkedIn post by CEO Justin Reese.

Ghirardelli, founded in 1852 in San Francisco, operates 19 Ghirardelli Chocolate and Ice Cream Shops across the country. The company has candy stores at tourist destinations, such as the Empire State Building in New York, Disney's California Adventure in Anaheim, Calif.; Disney Studio Store in Hollywood, Calif.; Disney Springs in Lake Buena Vista, Fla.; and on The Strip in Las Vegas.

The historic chocolate company was acquired by Swiss chocolate manufacturer Lindt & Sprungli in 1998. Lindt's other brands include Russell Stover, Caffarel, and Hofbauer/Kufferle.

Despite Ghirardelli's success, other candy companies have faced declining revenues that have led to bankruptcy filings.

Another candy maker's declining revenue

Not every candy company is enjoying Ghirardelli's success. Other candy manufacturers, such as private brand maker Candy Sense Inc., needed to restructure their business in a bankruptcy filing after facing declining revenues over the last two years.

Economic issues affected some companies in the candy sector as consumer attitudes toward buying candy and inflation were identified as the main culprits in 2025 by the National Confectioners Association’s State of Treating 2026 report.

“Finances played an overriding role in confectionery purchase decisions last year, particularly for households that were carefully monitoring finances. Inflation boosted dollar sales in 2025, while unit and volume sales struggled,” according to the National Confectioners Association.

Related: Sneaker brand closed 140 stores, and it still isn't working