In brief
Starbucks is turning to artificial intelligence and advanced technology to improve customer service and sales, following a period of declining profits. Innovations include AI-driven order taking at drive-thrus, inventory management assistance for baristas, and a chatbot for drink recommendations. While sales have recently seen an increase, investor concerns about rising spending remain. CEO Brian Niccol is confident that these technological investments will ultimately lead to sustained growth and profitability.
Americans pulling into a Starbucks drive-thru might think they are being served by a friendly staff member. But at some locations, the voice listening to the order is actually an AI robot.
Behind the counter inside the store, baristas can lean on a virtual personal assistant to recall recipes or manage schedules. In the back of the shop, a scanning tool has taken on the painstaking process of counting the inventory, relieving staff of one of retail's most tedious chores, in a bid to fix the out-of-stock gaps that have frustrated the firm.
The new technology is part of the hundreds of millions of dollars the 55-year-old coffee giant has been investing as it tries to win back customers after several years of struggling sales. Last week, the company reported its first sales increase in two years at established stores in the US - its biggest and most important market, accounting for some 70% of revenue.
However, the firm's share price slid 5% reflecting investor concerns that all the spending, which includes $500m (£363m) to boost staffing, had hurt profits. CEO Brian Niccol insists prices will not go up, asserting that consistent growth is key to addressing profitability concerns.
