Starbucks retired its AI-powered Automated Counting inventory tool across North American stores. Beverage components and milk are now counted the same way as other inventory categories, using manual counts. The tool, developed by NomadGo, used tablet-mounted cameras and LiDAR to scan shelves and generate automatic counts for selected beverage items. It was expanded nationwide after Brian Niccol became CEO in September 2024 as part of the “Back to Starbucks” turnaround. The system struggled to distinguish similar white liquids, leading to frequent miscounts and mislabeling, especially between oat milk and dairy. Starbucks said the change reflects standardization to improve consistency and execution at scale.
"“Starting today, Automated Counting will be retired,” the Monday memo read. “Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse. ” In other words, by hand."
"The tool, built by Seattle-based NomadGo, used tablet-mounted cameras and LiDAR to scan shelves of syrups, milks and other beverage components and produce automatic counts, replacing manual stock-takes for selected categories. It had been in development for several years and was expanded nationwide after Brian Niccol took over as chief executive in September 2024, as part of his “Back to Starbucks” turnaround."
"The problem, according to Reuters' February reporting and the company's own internal materials, was that the tool struggled with the everyday job of telling one white liquid from another. The app frequently miscounted or mislabelled items, particularly similar-looking products such as oat milk and dairy."
"In a statement to Reuters on Thursday, Starbucks framed the move as a standardisation exercise rather than a retreat. The decision came from “a decision to standardise how inventory is counted across coffeehouses as we continue to focus on consistency and execution at scale,” the company said"
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