While other companies push robots and AI, Starbucks is doubling down on human touch.
This year, the chain asked employees to scribble messages or doodles on single-use cups and brought back ceramic mugs for customers who want to hang out — a callback to when Starbucks cafes were cozy third spaces, not just pickup spots for mobile orders.
And on Wednesday, CEO Brian Niccol — the former Chipotle CEO who’s been driving these changes — told investors that the chain tried removing labor from stores, but has found that equipment and tech alone don’t solve the customer experience problem. People do.
Why the change?
Starbucks was struggling with slipping sales before Niccol — its fourth CEO in three years — came on board, and in 2024 attempted to course-correct with an affordable “pairings” menu and the Siren Craft System, a series of operational and tech updates designed to speed up beverage prep.
It also began testing increased head counts, a program Niccol has since rolled out to ~3k of its 36k stores.
Other new changes include:
- Pausing deployment of the Siren Craft System.
- A new dress code that calls for dark, solid clothes underneath Starbucks’ green aprons to “create a sense of familiarity,” per the brand.
- Expanding freshly baked offerings, which it tested in UK stores.
Will this work?
Niccol admitted that, yes, humans cost more, but he’s “banking on some growth to come with the investment.” Interestingly, many of Starbucks’ negative online reviews relate to the impact of mobile ordering on its cafes — e.g., inventory issues, increased wait times, frustrated staff.
The delicate balance between human staff and tech is one that’s playing out across many fast-food and fast-casual chains. Sales increase when customers get in and out quickly, and companies including Starbucks have found technology can decrease wait times.
But the real boon is often not replacing humans, but pivoting them to customer-centric tasks.
BTW, Chipotle recently revealed it’s trying a novel strategy: asking employees to smile and say thank you.
