Starbucks Corp is expanding the use of robotics and artificial intelligence (AI) to improve service speed and operational efficiency as part of efforts to reverse years of declining customer numbers and sluggish sales. The strategy comes as the global coffee chain reports early signs of growth in its core U.S. market.

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Automation and AI Rollout to Boost Operations

Starbucks has begun trialling robotic systems in some U.S. drive-thru lanes to handle order entry. Baristas are supported by virtual AI assistants that can recall complex drink recipes and help manage shift schedules.

Automated scanning tools have also been introduced in store back rooms to handle inventory counting- a task that historically slowed operations and contributed to out-of-stock issues. The push into automation is part of hundreds of millions of dollars in new spending aimed at improving the customer experience and regaining market share after several years of challenging sales conditions and intensifying competition.

Starbucks reported its first same-store sales increase in the U.S. in two years, where about 70% of its revenue is generated. However, the company’s share price fell about 5% recently amid investor concerns about the cost of the turnaround plan.

“Technology investments are important for the company’s plan to sustain momentum and deliver cost savings. Starbucks has also committed to achieving $2 billion in efficiency gains over the next three years.”
-Brian Niccol, Chief Executive Officer & Starbucks’ top executive (2024)

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Strategic Shifts Amid Broader Turnaround Plan

Alongside tech deployment, Starbucks has taken steps to strengthen its brand and customer loyalty. Starbucks had halted price increases, simplified the menu and set internal targets to accelerate order fulfilment. The company has also trimmed corporate roles, closed underperforming outlets and modified its China business structure.

The focus on automation arrives amid ongoing labour negotiations with unionised barista groups and broader challenges facing retail food chains. While early data indicate positive traction, analysts are interested in the balance between human service and technological efficiency in a customer-centric business.