Business

Starbucks Turns to Robots to Speed Up Service and Sales

Starbucks automation

Customers pulling into a Starbucks drive-thru in the United States may still hear a friendly voice taking their order. In some locations, however, that voice now belongs to an AI system rather than a human barista. The company has begun rolling out a mix of automation tools and artificial intelligence as part of a broader effort to address slow service, staffing pressure, and uneven store performance.

Inside stores, Starbucks employees are increasingly supported by digital tools. Baristas can use a virtual assistant to recall complex drink recipes or manage shift schedules. In back rooms, automated scanners now handle inventory counts, a task that once took up hours of staff time and often led to out-of-stock frustrations when mistakes occurred.

These changes are part of a large technology push tied to Starbucks’ turnaround strategy. The 55-year-old coffee chain has invested hundreds of millions of dollars in recent years, including spending on Starbucks automation, robot coffee brewing systems, and AI-powered drive-thru technology. The goal is to reduce friction in stores while improving the Starbucks customer experience.

Early signs suggest some progress. The company recently reported its first same-store sales increase in the US in two years. The American market accounts for about 70% of Starbucks’ total revenue, making the rebound significant. Investors, however, reacted cautiously, sending shares down roughly 5% amid concerns that the heavy spending has squeezed profits.

Chief executive Brian Niccol has argued that the investment phase is necessary. He said that once sales growth stabilises, efficiency gains from technology will help improve margins. Starbucks has also committed to finding $2bn in cost savings over the next three years, making automation a central pillar of its financial strategy.

Niccol joined Starbucks in 2024 during a difficult period for the brand. Customers were pushing back against repeated price increases, competition was intensifying, and labor disputes with unionized workers had drawn public attention. The company also faced calls for boycotts related to its handling of political issues, adding pressure on sales and reputation.

Since taking the role, Niccol has moved quickly to reshape operations. Price increases were paused, the menu was simplified, and a new goal was set for drinks to be completed in four minutes or less. Starbucks closed underperforming locations, cut thousands of corporate roles, and sold a large stake in its China business.

At the same time, Niccol has spoken about restoring Starbucks’ identity as a neighborhood coffeehouse. Staff have been encouraged to handwrite customer names on cups again, and stores are being refreshed with new seating, paint, and ceramic mugs. Each location upgrade costs around $150,000 and is expected to take several years to complete.

The growing presence of Starbucks robots and AI baristas may appear at odds with this renewed focus on human connection. Niccol has rejected that idea, saying technology is meant to remove obstacles rather than replace hospitality. By handling routine tasks, automation is intended to give staff more time to engage with customers.

Starbucks is testing an AI chatbot that can suggest drinks based on customer preferences and mood. The company is also introducing scheduled ordering features to help reduce congestion during peak hours. In drive-thru lanes, AI-powered ordering systems are being trialed to speed up transactions and reduce wait times.

These initiatives form part of what the company refers to internally as Siren System 2.0, a technology framework designed to modernise store operations. Alongside automated espresso machines, the system aims to standardise drink quality while reducing physical strain on workers, a key issue during ongoing labour shortages.

Looking ahead, Starbucks plans to expand aggressively, particularly outside the US. Management has said it hopes to nearly double its global store count to close to 40,000 locations over the coming years. Technology investments are expected to play a major role in making that growth profitable.

Price increases are not entirely off the table, though Niccol has described them as a last resort. He has pointed to easing inflation, stabilizing coffee prices, and recent tariff changes as factors that could help contain costs. In the US, coffee was recently removed from a list of items facing new tariffs, offering some relief.

Labor relations remain a challenge. Union organizers continue to accuse Starbucks of delaying contract negotiations, and executive compensation has drawn scrutiny. Niccol has said he wants a deal that is viable for both sides but has not provided a timeline.

Despite these tensions, Starbucks’ leadership insists that the company’s future depends on balancing technology with atmosphere. Automation, from AI baristas to robot-assisted brewing, is being positioned as a tool to fix operational bottlenecks rather than redefine the brand.

As Starbucks looks to reverse years of slow growth, its bet is that faster service, fewer errors, and smoother operations will help restore customer loyalty. Whether robots can help recreate the sense of community that once defined the chain remains an open question, but for now, technology sits at the center of Starbucks’ turnaround plan.

This content was adapted from an article in BBC

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