Starbucks is betting on robots and artificial intelligence to help reignite customer growth after years of sluggish sales, even as it seeks billions in cost savings and reassures investors on profitability.
At some U.S. drive-throughs, AI systems are now taking orders, while inside stores baristas rely on virtual assistants to recall recipes, manage schedules, and speed up service. In back rooms, automated scanners have taken over inventory counts, targeting persistent out-of-stock frustrations. The technology push is part of hundreds of millions of dollars in investments aimed at improving efficiency and customer experience.
Early signs are encouraging. The company recently reported its first same-store sales increase in two years in the United States, its largest market, which generates roughly 70% of revenue. Shares, however, slipped about 5% as investors weighed the cost of heavy spending, including a $500 million boost to staffing, against near-term profits.
Chief executive Brian Niccol said he remains confident that sustained sales growth will translate into stronger margins as the company targets $2 billion in cost savings over the next three years. “I really do believe we’ve got the right plan in place,” he said.
Niccol, who joined in 2024 after leading a high-profile turnaround at Chipotle Mexican Grill, moved quickly to reset strategy. He paused price hikes, simplified menus, set a four-minute order target, cut corporate roles, closed underperforming stores, and sold down a large stake in China.
Looking ahead, Starbucks plans aggressive international expansion, aiming to nearly double its global footprint to almost 40,000 stores. While price increases are no longer off the table, Niccol called them a last resort, expecting easing inflation, lower coffee costs, and relief after U.S. President Donald Trump removed coffee from tariff lists.
