Starbucks doubles down on baristas, not AI, to fix its customer crunch

Core Insights - Starbucks is shifting its strategy from automation to increasing human staffing in stores to improve efficiency and customer experience [1][3][5] Staffing Strategy - The company plans to hire more baristas and provide additional shifts to existing staff to address throughput and experience issues [2][5] - By the end of September, the new labor model and an algorithm for drink preparation will be implemented in approximately 3,000 US stores [3][4] Comparison with Industry Trends - Starbucks represents a counter-trend in the restaurant industry, where many chains are increasingly automating processes with AI [3][4] - The company has found that investments in labor yield better results in order fulfillment compared to equipment investments [5][13] Customer Experience Focus - Additional staffing is expected to enhance customer interactions, allowing employees to greet customers and address their needs more effectively [5][14] - The company aims to balance quick service for on-the-go customers with a more personal experience for those who prefer to stay [7][14] Employee Feedback - Some baristas express skepticism about the effectiveness of additional staffing, citing concerns about being overwhelmed by orders [8][11] - Positive feedback from some employees indicates that extra shifts are necessary to manage busy periods effectively [12] Financial Implications - The announcement of increased labor investment led to a roughly 7% dip in Starbucks' shares [13] - The company plans to manage costs through zero-based budgeting, requiring justification for each expense [13]