Tag Archives: Starbucks

Starbucks Tests AI Assistant to Improve Store Efficiency

Artificial Intelligence, , ,

Starbucks is piloting a generative AI assistant called Green Dot Assist in 35 stores across the U.S. and Canada. The tool, developed using Microsoft’s Azure OpenAI platform, is designed to help baristas and store managers manage day-to-day tasks more efficiently.

Accessible through in-store iPads, the assistant responds to voice or text queries, offering instant guidance on drink recipes, equipment troubleshooting, and maintenance procedures. This is intended to reduce the need for staff to consult manuals during busy periods.

Green Dot Assist also automates several routine management functions. It can create IT help tickets and suggest shift changes, easing the administrative workload. Staff can then focus more on preparing drinks and engaging with customers, rather than handling procedural or technical issues.

The assistant is powered by Microsoft’s AI tools, including a grounding engine that aims to minimize errors. Starbucks is monitoring results from the pilot before expanding to more locations in 2026, as part of a larger technology upgrade that also includes new espresso machines and point-of-sale systems.

Potential business impacts include faster service, improved order accuracy, and increased upselling opportunities, which could strengthen customer loyalty and drive sales. Operationally, Starbucks expects reduced training time, lower labor costs, and better inventory management—all of which could help limit waste.

However, the effect on consumer prices remains uncertain. While greater efficiency may reduce pressure to raise prices, the cost of implementing new technology could lead to upward pricing pressure if profit margins remain tight.

The company has framed the initiative as a way to improve efficiency while supporting employees, not replacing them—a notable distinction as other food service companies explore automation to cut frontline roles.

All the ‘Coffee’ in China: Starbucks Moving East

China, Companies, , ,

Starbucks, the giant coffee purveyor, is planning on adding an additional 12,000 stores to their existing 25,000 within the next five years. Luckily for people who like to see other stores besides those that sell coffee, not all of the additional 12,000 are going to be in Manhattan. As a matter of fact, only half are going to be built in either the US or China.

But if you really do like coffee and were even slightly worried that you might need to walk more than 30 seconds from wherever you may be to get your mandatory Caramel Brulée Latte, you can rest at ease now. As CEO Howard Schultz puts it:

“These are the early days of the growth and development of the company. If Starbucks was a 20-chapter book, I still think we’re in chapter 4 or 5.”

“Demand is there, and our ability to deploy capital and get the return on invested capital is very strong,” Starbucks President and COO Kevin Johnson said.

The fabulously successful company discussed their business plans at an investor day even in New York City last week. Schultz reassured his shareholders that:

“Our core business has never been stronger in the U.S. and around the world.”

Starbucks has its eye on the enormous potential market in China.

“Not only will China one day be bigger than the U.S., but our business in China will demonstrate that we will be one of the…most significant winners in terms of a Western consumer brand,” he said.

Starbucks to Help Employees Earn On-line Degrees

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Work at Starbucks and graduate college
Work at Starbucks and graduate college

Beginning in 2011 Starbucks offered a tuition reimbursement program for its employees who attended either City University of Seattle or Strayer University. Students/employees could receive up to $1,000 per year to help pay their tuition. The perk is a rarity among low-paying jobs. So far Starbucks has paid out about $6.5 million to their workers enrolled in this program.

Now Starbucks is phasing out the tuition reimbursement program in favor of a program in conjunction with Arizona State University to help their employees earn degrees on-line. Starbucks says there is not requirement for employees to stay at Starbucks after they graduate, and they can choose from a large selection of subjects to study, not just those subjects related to their employment.

It is not known at this time about how many employees will take Starbucks up on this offer. Neither is it known the financial deal the company made with the University. What is known is that an on-line degree from Arizona State costs about the same as the regular degree program, about $10,000 per year.

Starbucks Mobilizes

Consumerism, , , , , , , ,

New Way of Paying for Your Joe

It’s official; Starbucks is becoming more mobile. Check it out on YouTube. According to an article in WebOptimiser, the company is using a mobile payment system with its close to 7,000 company-owned stores following a testing of the idea in a few key stores. According to Brady Brewer, Starbucks VP, what this does is provide a much more convenient payment method. So far the iPhone and Blackberry have their apps and Android is on its way. But this is only a short-term method as in future phones won’t be needed as “near field communications” (NFC) technology will be applied.

Proven NFC Technology

In Asia, NFC technology has been used for a while in phones with chips, supported by various retailers. Already for last year, mobile payments reached $100m and by the end of this year, this figure is expected to double, according to Juniper research.

UK Coffee Drinkers Enjoy NFC

Starbucks and Barclaycard (in conjunction with VISA Europe) have signed a deal that has now brought NFC to their coffee houses. Most coffee houses throughout UK and Ireland will be using this technology by Spring 2012. How will this work? According to a recent article, “Orange customers with a Quick Tap-enabled handset will then be able to simply tap their mobile phone on a Starbucks contactless reader to make purchases of £15 and under.” The company’s aim is to make customer service as great as their coffee, according to the company’s EMEA technology services manager, Pete Blower. Since it seems that at coffee shops people just want to get their coffee and go, this is a perfect place for the technology to be in place.