Starbucks shifts back to human baristas after machine experiment backfires
In a profits call this week, Starbucks CEO Brian Niccol said the firm is adding new baristas to 3,000 stores.
Machines Can’t Replace Human Touch: Acknowledging the Shortcoming
Starbucks has recognized the limitations of replacing human workers with machines after an attempt to reduce headcount by relying on advanced technology failed to meet expectations. CEO Brian Niccol recently explained to investors that the company’s efforts to use machines to substitute human labor in stores had backfired. According to Niccol, the assumption that equipment could offset labor reduction proved inaccurate.
In a call with investors, Niccol stated, “Over the last couple of years, we’ve actually been removing labor from the stores, I think with the hope that equipment could offset the removal of the labor. What we’re finding is that wasn’t an accurate assumption with what played out,” as reported by The Guardian.
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Customer Experience and Staffing Go Hand in Hand
Niccol emphasized that while new technology was meant to improve efficiency, it couldn’t replace the critical role played by human baristas in ensuring a positive customer experience. He explained that the key to a successful store environment lies in having well-trained staff alongside advanced equipment. “Equipment doesn’t solve the customer experience that we need to provide, but rather staffing the stores and deploying with this technology behind it does,” Niccol explained.
As part of the strategy to improve service, Starbucks plans to hire more baristas across thousands of locations, despite the higher costs that will come with increased staffing. Niccol sees this move as essential for the company’s growth, especially after struggling with declining sales.
The Shift Towards Recovery: A Strategy for Turnaround
This decision comes after Starbucks reported a 1% drop in same-store sales for the first quarter of 2025, marking the fifth consecutive quarter of declining sales. Despite this, Niccol reassured investors that the company was showing signs of internal improvement. For instance, the average time to fulfill in-store orders had been reduced by two minutes during the quarter.
Niccol is also implementing several measures to revitalize Starbucks, including limiting the number of items customers can order through mobile, reducing the menu by 30%, and reintroducing personalized customer interactions, such as writing customers’ names on cups with Sharpies. Furthermore, a new dress code for baristas, including solid black tops and denim bottoms, will be enforced starting May 12.
Conclusion: The Return to the Human Element
While the coffee giant has embraced technology in its operations, this pivot to reintroducing human baristas reflects the company’s realization that human touch is irreplaceable when it comes to customer experience. Starbucks hopes this approach will help them bounce back from their recent struggles and continue to lead in the competitive coffee industry.