Starbucks Shifts Focus Back to Human Baristas

In a notable pivot to its operational strategy, Starbucks is reinstating human baristas at thousands of its locations after recognizing that automation cannot fully replace the role of human employees in delivering quality service.

CEO’s Admission on Automation Shortcomings

Brian Niccol, the CEO of Starbucks, addressed investors earlier this week, acknowledging that the company’s previous efforts to decrease workforce size in favor of machines have not yielded the anticipated results. “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,” Niccol reflected, “What we’re finding is that wasn’t an accurate assumption with what played out.”

Plans for Human Staff Increases

Since joining Starbucks in September 2024, Niccol has expanded the initiative to hire more baristas at approximately 3,000 of the chain’s 40,000 global locations. This decision is part of a broader strategy to enhance customer experience, which Niccol emphasized is dependent on sufficient staffing rather than sole reliance on technology.

Strategic Changes for Improvement

Starbucks is looking to strike a balance between technology and human interaction. Niccol pointed out that while technological innovations are essential, they cannot replace the essential customer service provided by well-staffed teams. “Equipment doesn’t solve the customer experience that we need to provide,” he stated, “but rather staffing the stores and deploying with this technology behind it does.”

Financial Outlook and Strategic Goals

The decision to reinforce staffing levels may increase operational costs in the short term; however, Niccol asserted that this could facilitate “some growth” for the company. Starbucks has been facing challenges, including five consecutive quarters of declining sales. Recent reports indicated a 1% decrease in same-store sales for the first quarter of 2025, which did not meet Wall Street expectations.

Operational Enhancements and Menu Modifications

In addition to hiring more staff, Niccol’s plan includes several operational changes designed to streamline service. These include:

• Limiting the variety of items available for mobile orders
• Introducing ceramic mugs for in-store orders
• Reducing the menu by 30%
• Reintroducing the practice of writing customers’ names on cups
• Setting a target for baristas to complete orders in under four minutes

Starting May 12, Starbucks will also implement a new uniform policy requiring baristas to wear solid black tops paired with either khaki or denim bottoms.

Store Statistics and Stock Performance

As of now, Starbucks operates 16,941 locations in the U.S. and employs around 211,000 individuals domestically. At the time of writing, the company’s stock had experienced an approximately 11% decline year-to-date.