Latest news with #GreenDotAssist
Yahoo
17 minutes ago
- Business
- Yahoo
Starbucks' new game plan to roll out AI chatbots at cafés could serve as a ‘litmus test' for the industry, analyst says
As continues its 'get back to Starbucks' plan to revive slumping sales, the company announced it will implement an OpenAI-powered chatbot to remind baristas of drink recipes and assist them with equipment troubleshooting. Analysts told Fortune the move could help streamline hiring and efficiency, but it also carries with it the pitfalls of AI, including the potential for hallucinations and outages. Starbucks is betting on AI to give its baristas some extra help behind the counter. The Seattle-based coffee chain announced Tuesday the launch of 'Green Dot Assist,' an AI-powered virtual assistant intended to simplify baristas' jobs and fulfill orders faster. Starbucks will pilot the technology created with Microsoft Azure's OpenAI platform at 35 locations and will roll it out nationwide next year. The AI assistant will pull recipe cards of drinks to show baristas how to make them, as well as suggesting swaps if ingredients run out, the company said. The tech will also suggest food pairings to suggest to customers, provide troubleshooting support for malfunctioning equipment, and help managers find employees to backfill shifts should a store be short-staffed. 'It's just another example of how innovation technology is coming into service of our partners and making sure that we're doing all we can to simplify the operations, make their jobs just a little bit easier—maybe a little bit more fun—so that they can do what they do best,' Starbucks chief technology officer Deb Hall Lefevre told CNBC. Starbucks first announced the tech at its Leadership Experience event on Tuesday, when it also unveiled plans to expand the position of assistant manager by adding the role to 'most company-operated stores in the U.S,' hiring about 90% of management internally. The swath of labor changes are the latest in CEO Brian Niccol's efforts for the company to 'get back to Starbucks' and revive its cozy-coffeehouse reputation amid slumping sales. The company reported in April its fourth straight quarter of same-store sales declines, in part a result of economic uncertainty putting a damper on demand. As part of the turnaround efforts, Starbucks will have to draw on its big brand name and past goodwill from customers to refocus on what made the chain popular to begin with. 'All brands drift over time, and I have pattern recognition,' Starbucks CFO Cathy Smith told Fortune in April. 'I've seen this with a number of brands, and the great ones recapture what made them great.' The move follows the lead of other restaurant chains deploying AI. Yum! Brands, the conglomerate behind KFC and Taco Bell, has partnered with Nvidia to take drive-thru and digital orders. McDonald's, however, cancelled its contract with IBM after two years and returned humans to drive-thru order-taking. While restaurants have had mixed results with AI, analysts see Starbucks' recent moves to leverage the technology as largely positive, so long as the company uses it effectively. Logan Reich, an analyst at RBC Capital, told Fortune that while the introduction of an AI chatbot won't be instrumental in increasing revenue, it can help train and onboard staff more efficiently, particularly as the company invests in internal promotions and giving employees more hours. Announcing new management opportunities alongside implementation of AI tools also sends the signal to workers that AI won't be taking their jobs anytimes soon, according to Gadjo Sevilla, a senior AI and tech analyst at eMarketer. 'What they're trying to show here is that, with regard to adoption, is that they can make it work with longtime staff,' Sevilla told Fortune. 'So it's not replacing jobs, it's enhancing jobs, with regards to the new hires.' But as with any rollout including AI, Starbucks may experience hiccups like hallucinations. 'Making sure that the chatbot is accurate and providing in an accurate way and not causing more issues—I think that's going to be a critical aspect of rolling out to a broad storebase,' Reich said. Sevilla warned the tech may experience more profound problems, from security breaches to outages—like the one ChatGPT experienced Tuesday—that are associated with a company using tools outside its immediate premises. As more restaurants figure out how to integrate AI into their point of sale, they may look to see how effective Starbucks was in leveraging the tech. 'This is going to be a litmus test for AI integration at this scale,' Sevilla said. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
a day ago
- Business
- Globe and Mail
Starbucks (SBUX) Unveils New AI Assistant for Baristas That's Powered by Microsoft
Coffee making is going high tech. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Starbucks (SBUX) is rolling out a new generative artificial intelligence (AI) assistant for its coffee baristas that's powered by Microsoft (MSFT) Azure's OpenAI platform. The AI assistant will initially be deployed in a trial at 35 Starbucks locations in the U.S. as part of a strategy to simplify baristas' jobs and speed-up service at the company's coffee shops. The global coffee chain showed off the new technology to more than 14,000 North American store managers at an event held in Las Vegas, Nevada on June 10. A broader rollout of what Starbucks is calling the 'Green Dot Assist' platform across the U.S. and Canada is slated to begin this autumn. News of the AI assistant comes as Starbucks tries to revive its sluggish sales under new CEO Brian Niccol. Improved Service Niccol has set a goal of improving Starbucks' service times to four minutes per order. The hope is that quick, accurate answers to barista questions will help speed-up service and improve quality at Starbucks locations. With the AI assistant, Starbucks' baristas will be able to use a tablet to get answers to questions such as how to make an iced espresso and troubleshoot equipment errors. As the AI assistant evolves, Starbucks has even bigger plans for its use, including automatically creating a ticket with information technology (IT) for equipment issues. Starbucks is expanding its relationship with Microsoft about a year after the tech giant's CEO Satya Nadella stepped down from Starbucks' board of directors. SBUX stock has risen 2% this year. Is SBUX Stock a Buy? The stock of Starbucks has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 12 Buy and 11 Hold recommendations issued in the last three months. The average SBUX price target of $93.25 implies 1.99% upside from current levels.
Yahoo
a day ago
- Business
- Yahoo
Starbucks Stock on Path to Recovering From April Selloff
Starbucks stock climbed Wednesday, rising on the path toward price levels not seen since early April, when tariffs weighed on the market. The company announced new AI technology and CEO Brian Niccol said potential partners were interest in taking a stake in Starbucks' portfolio in China. Citi analysts also lifted their price target for Starbucks shares in a research note published Wednesday (SBUX) shares are climbing toward prices not seen since April, when newly enacted tariffs dragged down the market. The coffee chain's shares were recently up more than 4% to above $95, within range of the roughly $100 they last closed above in March before sinking below $80. The shares rose amid the circulation of a few headlines—and as Citi analysts increased their price target for its shares in a morning research note. Citi brought its target from $84 to $95–roughly in line with where shares were trading by Wednesday afternoon. The company announced Green Dot Assist, an AI assistant, will be rolled out to improve store operations, and help with tasks like reviewing beverage recipes and troubleshooting equipment. Efficiency—and serving customers within four minutes—is the centerpiece of a turnaround campaign Starbucks launched to lure back customers amid sluggish traffic. The company also hopes to lift sales by making cafes a more welcoming place to spend time and money. Meanwhile, the company is exploring selling a minority stake in its struggling shops in China, and has received a 'lot of interest' from potential partners, CEO Brian Niccol recently told The Financial Times. Starbucks's gain was leading the S&P 500 as of Wednesday afternoon, outpacing a slight advance in the benchmark index. Read Investopedia's full coverage of today's trading here. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Starbucks Makes 'Bold' Announcement About Its Next Phase
Starbucks Makes 'Bold' Announcement About Its Next Phase originally appeared on Parade. Starbucks is brewing up more changes to come, the company announced on Tuesday. The beloved international chain of coffeehouses previously unveiled a sweeping series of changes as part of its "Back to Starbucks" strategy, which included bringing back handwriting on cups, updates to the free refill policy, and slimming down its core menu. Now, it's nearing the next phase of revisions that it hopes will allow for more innovation, modernization and an overall improved experience for customers and employees alike. During the Starbucks Leadership Conference in Las Vegas this week, chairman and CEO confirmed that among the updates in this latest phase is the development of a brand-new role at Starbucks cafes, new titles for store managers, and many new products on the horizon at cafes in both the U.S. and Canada. Related: As part of its continued effort to "transform" the customer experience, Starbucks plans to roll out trendy new menu items and coffee blends, teasing a "bold" new Starbucks 1971 dark roast to come this winter, protein cold foams and fresh croissants. The chain is also adopting a similar strategy used by Taco Bell and Chick-fil-A, dubbed the "Starting Five," which sees a select set of restaurants test potential menu additions before a bigger introduction. But what drew loud applause from the crowd was the company's decision to invest more in its stores and retail leadership. On Tuesday, Starbucks said it would introduce a new assistant store manager role "at the majority of company-owned" Starbucks locations by the end of 2026, with plans to expand to Canada next summer. Starbucks store managers will now formally carry the title 'Coffeehouse Leader' and will wear a custom cross-back apron symbolizing hospitality and coaching. The company also explained it's piloting a Green Dot Assist program, a generative AI-powered assistant that supports baristas with real-time shift guidance, standards, and troubleshooting. The AI support is testing in 50 Starbucks stores, with a larger rollout planned for fall 2026. Its point-of-sale service has been revamped to "reduce training time and drink remakes while enhancing workflow" and offer "improved accessibility and personalization." Related: Starbucks' chief partner officer Sara Kelly suggested that updates to the employee experience would ultimately benefit customers, too. "When we say we're making Starbucks the best job in retail, we mean it," Kelly said in a statement. "Because when our partners feel supported, they pour that care into every cup they serve." The leadership conference, which is still ongoing, will see more than 14,000 Starbucks store managers and retail leaders participate in development sessions and coffee education workshops to "further hone their craft and deliver exceptional coffeehouse service," according to a spokesperson for the company. 'We are here to recognize each and every one of you, reconnect with this community and celebrate what's working. And we have to tackle the things that need fixing together,' Niccol said at the June 10 event. 'Starbucks is way too important to each of us, and frankly, to the world, for us not to be hugely successful.' Next: Starbucks Makes 'Bold' Announcement About Its Next Phase first appeared on Parade on Jun 11, 2025 This story was originally reported by Parade on Jun 11, 2025, where it first appeared.
Miami Herald
2 days ago
- Business
- Miami Herald
Starbucks reveals big change for baristas, customers
Mentioning technology in the fast food industry may conjure images of faceless kiosks passing your McDonald's order back to a machine that flips burgers. The promise of this future has its obvious advantages. It's nearly impossible for a computer to make a mistake in your order or forget a certain modification or food allergy. Related: Starbucks employees walk out of stores over controversial policy Secondly, your fast food orders will be uniform. You won't get a Chipotle burrito bowl with too little protein or too much sour cream because a robot will have premeasured all of those ingredients. Hate waiting 10 minutes in line during the lunch rush to order your food and then another 10 minutes to receive your food? Well, automated order taking and food making will cut down on customer wait times immensely. The robots don't take breaks and don't get tired. In 2023, McDonald's debuted its first restaurant primarily staffed by robotics in Fort Worth, Texas. The machines handled almost everything, from taking orders to "manning" the fries. While that dining utopia is still years away, restaurants are moving towards that future now, but the advances are incremental. Starbucks just unveiled its latest technological breakthrough with artificial intelligence, but don't worry, your favorite barista isn't going anywhere, for now. Image source: Getty Images This week (June 10), Starbucks (SBUX) showed off a generative artificial intelligence assistant created with Microsoft Azure's OpenAI platform. Starbucks will be rolling out its "Green Dot Assist" program at 35 of its more than 17,000 North American locations in June with a goal of rolling out the platform across the U.S. and Canada by the fall. Starbucks unveiled the plan to more than 14,000 store managers at its Leadership Experience conference in Las Vegas on June 10. Related: Starbucks CEO sounds the alarm on the wrong problem "It's just another example of how innovation technology is coming into service of our partners and making sure that we're doing all we can to simplify the operations, make their jobs just a little bit easier, maybe a little bit more fun, so that they can do what they do best," Starbucks Chief Technology Officer Deb Hall Lefevre told CNBC. Starbucks baristas will have a tablet behind the counter equipped with Green Dot Assistant to get answers to any questions they may have, including how to make a particular drink or how to troubleshoot equipment errors. Through the new program, the workers will have access to an employee handbook, a maintenance worker, and a trained veteran barista at their beck and call. Starbucks plans to expand the program in the future so that it can automatically generate an IT ticket for equipment issues and generate staffing suggestions when needed. While Starbucks is looking to bolster its future through technology, its recent past should cause some concern. In the second quarter, Starbucks saw comparable store sales fall by 1% year over year while transactions dropped 4% in the quarter. Starbucks' operating income in the quarter plummeted 35%. Amid the downturn, CEO Brian Niccol urged Starbucks to focus on being a community coffeehouse. "My optimism has turned into confidence that our Back to Starbucks plan is the right strategy to turn the business around and to unlock opportunities ahead," said Niccol during an earnings call in April. The plan is focused on improving the customer experience through recent changes such as delivering orders to customers in "four minutes or less," updating store designs, and serving coffee in ceramic mugs for customers who want to sit inside stores. Green Dot Assist could help the company achieve that goal. Related: Starbucks makes major change in rewards program loyal fans will hate The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
