Starbucks Boosts Staffing as Coffee Chain Reverses Automation Trend
Starbucks is investing heavily in adding more shifts for baristas across thousands of its US stores, marking a significant departure from the automation-heavy strategies adopted by many of its competitors in the restaurant industry. This move comes as analysts believe that the coffee giant’s focus on human labor could be a key factor in its turnaround.
The decision to staff up is based on the realization that the efficiency-oriented machines introduced over the past few years have not been as effective in speeding up drink production as human workers. As a company spokesperson revealed, some of the additional staffing will involve hiring new baristas, while in other cases, existing baristas will be given extra shifts or workers will be redeployed from one store to another to meet demand.
“We’re finding through our work that investments in labor rather than equipment are more effective” at making orders quickly, said CEO Brian Niccol during the company’s earnings call. This shift in strategy is being implemented alongside a new algorithm designed to optimize drink preparation order, which is expected to enhance the efficiency of the additional staffing by the end of September.
The new labor model and algorithm will be rolled out in approximately 3,000 US stores by the end of September. This approach stands in contrast to other major chains like Wendy’s, which is using AI to take drive-thru orders, and Chipotle, which has introduced machines to prepare avocados for guacamole.
According to R.J. Hottovy, head of analytical research at Placer.ai, “They’re realizing that there’s more to it, and solving some of the throughput and other experience issues they need to fix is going to require more labor.” The additional workers will enable store employees to provide better customer service, including greeting customers, handing off orders personally, and being available for customer inquiries.
Starbucks’ decision to focus on human labor is yielding positive results, as seen in a trial at 700 stores where the addition of more baristas led to a growth in transactions. However, some baristas have expressed concerns about being overwhelmed by the number of orders, particularly those placed through the Starbucks mobile app.
While the investment in labor comes with risks and costs, Starbucks executives plan to offset these expenses through zero-based budgeting. The move aligns with Niccol’s goal of creating a welcoming environment that encourages customers to return. As Hottovy noted, “At the end of the day, it’s really your employees that make the experience.”
