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Starbucks bets on AI and robotics to refresh service and revive growth

Behind the counter and at the drive-thru, Starbucks is quietly reshaping how it serves customers by putting artificial intelligence and robotics at the centre of its operations. The company says these investments are meant to improve speed, accuracy, and overall customer experience.

The coffee chain has begun using robots to take orders at select drive-thru locations. Inside its stores, baristas are now supported by a virtual personal assistant that helps them recall recipes and manage work schedules more efficiently.

As part of its push for operational efficiency, Starbucks has also rolled out a new scanning tool to simplify inventory counting. The company said the tool is designed to reduce out-of-stock situations that have previously led to customer frustration. These technology upgrades are part of a multi-million dollar investment plan aimed at winning back customers after years of falling sales.

Starbucks recently reported its first sales increase in 2 years at established stores in the US, its biggest market, which accounts for around 70% of total revenue. Despite this improvement, the company’s share price fell by 5%. Investors remain concerned that heavy spending, including $500 million to increase staffing levels, could put pressure on profits.

Starbucks CEO Brian Niccol expressed confidence that steady sales growth will address profit concerns over time. He said, “I think that’s all going to come. I really do believe we’ve got the right plan in place.” Niccol joined the company in 2024, when Starbucks was dealing with customer backlash over price hikes and rising competition.

Since then, the company has made several strategic changes. These include pausing price increases, simplifying the menu, and setting a goal for baristas to complete orders in 4 minutes or less. Starbucks has also cut thousands of corporate jobs, closed underperforming stores, and sold a large stake in its China business.

To enhance in-store experience, Starbucks is encouraging staff to handwrite customer names on cups. Stores are also being refreshed with better seating, new paint, and ceramic mugs under a $150,000-per-store uplift plan. Alongside this, the company is testing an AI chatbot that suggests drinks based on customer moods and allows pre-ordering to cut wait times.

At drive-thrus, Starbucks is testing AI-powered order taking to free up staff for hospitality and coffee preparation. These efforts support Niccol’s broader expansion strategy, including plans to nearly double the global store count to almost 40,000 locations in the coming years.

Also read: Viksit Workforce for a Viksit Bharat

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