Starbucks Pulls AI Inventory Tool from 11,000 Stores After Miscounts
On May 21, Starbucks halted its AI-powered Automated Counting system across over 11,000 North American stores after staff reported frequent miscounts of milk, syrups, and other beverage components. The company will return inventory tasks to employees and implement more frequent replenishments and supply chain adjustments.
1. AI Inventory System Deployed and Halted
Starbucks introduced its Automated Counting tool nine months ago across more than 11,000 North American company-operated stores, using camera-based scans on tablets to track beverage components such as milk, syrups and other key items. Store employees reported that the app frequently produced faulty readings, resulting in miscounts and mislabeling that compounded stocking problems instead of resolving them.
2. Operational Response and Future Plans
On May 21, Starbucks retired the AI inventory system and shifted counting responsibilities back to store employees. The company is increasing the frequency of daily store replenishments and pursuing additional supply chain adjustments to improve product availability and reduce worker frustration.