Starbucks accepts automation idea failed, CEO Brian Niccol says, 'That wasn't an accurate ...'
Starbucks
is shifting its strategy by investing in more baristas rather than automated systems after discovering that cutting staff in favor of equipment has damaged customer experience, CEO
announced at Q2 2025 earnings call.
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"Over the last couple of years, we've been removing labor from the stores, I think with the hope that equipment could offset the removal of the labor," Niccol said. "That wasn't an accurate assumption with what played out."
The coffee giant's new approach, called the
Green Apron Service model
, will launch next month with plans to implement it in about a third of US locations by the end of fiscal year 2025. The model will include a new algorithm to optimize drink preparation sequence and reduce wait times.
Starbucks CEO says that company's automated coffee making system will be deployed only in some locations
Niccol, who became CEO in September, is slowing the rollout of the company's Siren system—automation technology introduced in 2022 designed to streamline drink-making. Instead, he plans to deploy the technology only in "very targeted" high-volume locations.
The company has already tested increased staffing in 700 stores, with plans to expand to between 1,500 and 2,000 US locations by May and around 3,000 by year's end.
Niccol acknowledged the additional labor will increase costs but expressed confidence that improved customer experience will drive growth.
"The equipment doesn't solve the customer experience that we need to provide," Niccol said, emphasizing his focus on improving hospitality through "small details" like handwritten notes on cups and using ceramic mugs for in-store customers.
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