<p>Starbucks is making an ambitious technology push as it tries to regain customers after years of sluggish growth.</p>
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<p>Starbucks is making an ambitious technology push as it tries to regain customers after years of sluggish growth. From AI-powered drive-thru ordering to automated inventory systems and virtual assistants for baristas, the coffee giant is leaning on robotics and artificial intelligence to modernize operations and improve consistency.</p><p>The strategy is already showing early signs of success. Starbucks recently reported its first same-store sales increase in the U.S. in two years, a notable milestone for a company whose home market accounts for roughly 70% of its revenue.</p><h2>Starbucks AI behind the counter and at the drive-thru</h2><p>At select locations, Starbucks customers pulling into drive-thrus may not be greeted by a human taking their order, but by an AI system that processes requests automatically. Inside stores, baristas now have access to a virtual assistant that helps recall drink recipes, manage schedules, and reduce training friction during busy shifts.</p><p>Behind the scenes, Starbucks is also deploying automated scanning tools to count inventory, a task that previously consumed hours of staff time and often resulted in out-of-stock frustrations for customers.</p><p>Together, these systems form part of what Starbucks calls a multi-layered operational overhaul, designed to cut wait times while freeing staff to focus on customer interaction.</p><h2>A costly Starbucksbet with mixed Starbucks investor reactions</h2><p>The technology push is expensive. Starbucks has poured hundreds of millions of dollars into <a href="https://www.ghacks.net/category/ai/">automation and AI</a>, alongside a $500 million investment in staffing to stabilize store operations. While sales momentum has improved, investors reacted cautiously—sending the company’s shares down about 5% after earnings, citing concerns that heavy spending is weighing on profits.</p><p>Chief executive Brian Niccol, who joined Starbucks in 2024, remains confident that consistent growth will ultimately offset the costs. He has also committed to finding $2 billion in cost savings over the next three years, making technology a central pillar of that effort.</p><h2>Rebuilding the “third place”</h2><p>Niccol has framed Starbucks’ struggles less as a pricing or product issue and more as a loss of identity. In his view, the company drifted too far toward efficiency metrics and away from the idea of Starbucks as a welcoming “third place” between home and work.</p><p>To restore that feel, Starbucks has brought back handwritten names on cups, invested in store refreshes with comfortable seating and ceramic mugs, and launched a multi-year plan to upgrade locations at a cost of about $150,000 per store.</p><p>At the same time, the company has tightened rules around uniforms and bathroom access, showing that the softer aesthetic changes are paired with stricter operational discipline.</p><h2>AI as a Starbucks support tool, not a replacement</h2><p>Despite the irony of pushing automation while emphasizing human connection, Niccol argues the two goals align. According to Starbucks leadership, AI is meant to remove friction, not replace hospitality.</p><p>New tools in testing include:</p><ul>
<li>An AI chatbot that suggests drinks based on mood or preferences</li>
<li>Scheduled ordering to reduce congestion during peak hours</li>
<li>Automated drive-thru systems that allow staff to focus on coffee prep and customer interaction</li>
</ul><h2>Starbucks expansion, pricing, and lingering challenges</h2><p>Looking ahead, Starbucks plans to nearly double its global store footprint, targeting close to 40,000 locations, with much of the growth coming from international markets.</p><p>While the company paused price hikes early in Niccol’s tenure, it is no longer ruling them out entirely. However, he insists pricing will remain a last resort and any increases would be modest.</p><p>Union tensions remain unresolved, with ongoing disputes over pay, benefits, and contracts continuing to cast a shadow over the turnaround effort. Still, Niccol maintains that Starbucks’ core value lies not in coffee alone, but in providing spaces where people want to gather.</p><p>Starbucks’ gamble is clear: use AI and robotics to streamline operations while doubling down on warmth, community, and experience. If successful, the approach could redefine how large retail brands balance automation with human connection.</p><p>For now, Starbucks is betting that smarter machines behind the scenes will help restore the buzz out front—one cup at a time.</p>
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