"Starbucks Corp. ( NASDAQ: SBUX) recently said that it would launch a secret AI barista. What isn't clear is why that's a secret. Fortune picked up CEO Brian Niccol's comments. He said Starbucks is well underway in launching an artificial intelligence project. The results, Niccol added, will be a system to help store staff predict in "real time" what customers order. This will specifically apply to people who order their items in advance. It won't help."
"Niccol has come up with several other tactics to turn around the company. He limited what baristas may wear. He has said he wants to turn Starbucks stores into local cafes and community gathering places. He has fired over 1,000 managers. More recently, he has closed several hundred stores, which has angered some Starbucks landlords. Few new CEOs have grasped at straws so rapidly."
"Starbucks's success, or lack thereof, is defined by same-store sales and how much customers spend per visit. Among the complaints customers had was long wait times. There is no solid evidence that this has improved in the United States. Occasionally, Starbucks stores do not open on time. They also run out of food. These issues would seem simple to fix, but they persist."
Starbucks announced plans for a secret AI barista intended to help store staff predict in real time what customers will order, specifically for advance orders. CEO Brian Niccol launched the initiative amid disappointing stock performance and multiple operational fixes. Niccol has imposed dress limits for baristas, sought to reposition stores as local cafes, fired over 1,000 managers, and closed several hundred locations. Customers complain of long wait times, occasional late openings, and food shortages that persist. Rising coffee prices and competition from home brewing and fast-food chains have reduced visits. Any AI gains must be accompanied by broader operational improvements to affect results.
Read at 24/7 Wall St.
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