Starbucks Launches Assistant Store Manager Program and Explores AI Innovations Amid Workforce Challenges

Starbucks launches Assistant Store Manager program and explores AI innovations amidst workforce challenges

Starbucks has introduced a new Assistant Store Manager (ASM) program aimed at bolstering leadership and career growth across its coffeehouses as part of a broader plan to revive sales. Concurrently, the company is embracing artificial intelligence (AI) for operational improvements and new customer experiences, while facing operational disruptions and internal labor disputes.

• Starbucks launched its Assistant Store Manager program in select U.S. markets to enhance leadership and improve store performance, with plans for national expansion by year-end.
• CEO Brian Niccol highlighted ongoing AI experiments, including voice ordering and real-time barista support, but ruled out robotic staff replacements for now.
• An Amazon Web Services (AWS) outage disrupted Starbucks app orders and other online services, affecting customer experience nationwide.
• A former Starbucks barista, Briar Wolf, claims wrongful termination following an incident involving a homophobic attack and is seeking reinstatement with union support.
• Starbucks is also introducing new menu items, exploring small-scale alcohol service, and remodeling stores to create personalized customer spaces.

Assistant Store Manager program: enhancing leadership and partner support

At its Leadership Experience 2025 convention held in Las Vegas last June, Starbucks unveiled the Assistant Store Manager program as a key component of the “Back to Starbucks” turnaround strategy. The initiative aims to add at least one full-time ASM at nearly every coffeehouse across the United States and Canada.

Currently active in areas including Chicago, Rio Grande Valley (Texas), and Inland Empire (California), the pilot has deployed 62 ASMs, 90% of whom are promoted internally from roles such as shift supervisors or baristas. Chief partner officer Sara Kelly explained that the goal is to strengthen leadership stability, enhance partner (employee) experience, and improve overall coffeehouse performance.

Kelly cited data showing that engaged teams can be 17% more productive and 21% more profitable. She emphasized the program’s role in providing store managers—who typically lead about 18 partners and generate nearly $2 million in annual sales—with additional support to coach teams, manage operations, and elevate customer experiences.

The pilot will conclude in December, after which Starbucks plans to refine onboarding, training, scheduling, and partner engagement strategies to inform the national rollout. This program aligns with CEO Brian Niccol’s vision announced last year to double the number of U.S. Starbucks stores while ensuring 90% of managerial roles are filled internally over the next three years.

AI innovations: from virtual barista assistants to voice ordering

In an October 16 appearance on Yahoo Finance’s “Opening Bid Unfiltered” podcast, CEO Brian Niccol shared insights into Starbucks’ experiments with artificial intelligence. A primary AI advancement is the Green Dot Assist—a generative AI virtual assistant deployed on in-store iPads—that helps baristas in real time by quickly answering questions such as seasonal drink ingredients, reducing the need to consult manuals.

First installed in 35 stores, Green Dot Assist enhances efficiency by providing managers fast access to solutions for equipment or recipe issues, helping maintain service quality. Another AI-supported feature is Smart Queue, which prioritizes customer orders and provides status updates via in-store screens.

Looking ahead, Niccol envisions a seamless voice ordering experience where customers can simply speak their drink requests and have orders ready upon arrival without manually opening the Starbucks app. However, he noted these AI initiatives are still in early stages and are not yet scaled across stores.

Regarding automation, Niccol dismissed near-term plans for robotic baristas, underscoring Starbucks’ commitment to employing real people who deliver handcrafted beverages and authentic customer interactions.

New menu offerings and store remodels

Niccol also revealed Starbucks is launching artisanal pastries and “protein-forward” breakfast items, building on the success of popular egg bites varieties, including bacon and gruyère, Italian sausage, and roasted red pepper. He expressed optimism about expanding afternoon offerings alongside continued morning daypart growth.

Additionally, the company is experimenting on a small scale with alcoholic beverages, referencing specialty drinks like the Lavender Matcha Margarita and Espresso Martini served at Starbucks Reserve locations in major cities.

Store remodeling is an ongoing focus, with about 100 completed already and plans for over 1,000 “uplifts” during the fiscal year. The goal is to add more plants, rugs, and personal touches to make coffeehouses inviting community spaces with “a couple of seats where everybody walks in and says, ‘That's my seat.’”

Impact of Amazon Web Services outage on Starbucks and consumers

On the morning of October 20, a widespread Amazon Web Services (AWS) outage affected over 80 online services, disrupting Starbucks app orders, Reddit browsing, Slack communications, and more. The disruption caused frustration among customers who had to resort to in-person ordering, with some notably tweeting their displeasure at the Starbucks app being down.

The AWS issue also impacted smart home devices like Alexa alarms and Ring cameras, leaving users unable to control lights or access security footage. Small business booking systems and gig economy platforms such as Instacart and Lyft experienced downtime, as did trading platforms like Webull, Robinhood, and Coinbase.

Students relying on Canvas for assignments also faced difficulties. Some engineers and office workers struggled with tools like Cursor, Vercel, and Slack, while rival Microsoft Teams remained unaffected.

Gaming services including Fortnite, Clash Royale, Roblox, and word games such as Wordle saw outages, leading to concerns over lost streaks. Social media platforms like Snapchat and Pinterest were temporarily inaccessible, although Elon Musk noted that X (formerly Twitter) remained operational.

Workplace controversy: former barista Briar Wolf’s wrongful termination claim

Briar Wolf, a transgender former Starbucks barista in Huntsville, Alabama, is contesting her termination believed to be unjust. The controversy stems from a September 15 incident where a man entered the store, shouted homophobic slurs, and tore down a rainbow pride flag.

Wolf confronted the individual, who directed violent threats at her upon noticing her transgender identity. After calling the police and the perpetrator leaving, he returned with a woman and continued harassment through the drive-through window. Wolf described feeling afraid and angry but responded proportionally.

Starbucks conducted an investigation and Wolf reported the incident to management. However, about a month later she was terminated for allegedly failing to adhere to Starbucks’ “De-escalation and Disengagement Standard” and “Safety and Security policy” by escalating the situation.

Wolf suspects her firing is linked to timing, noting she had recently helped unionize the store and had filed for medical leave related to gender-affirming surgery, which the company insurance covers. She accuses Starbucks of not truly supporting LGBTQ workers, citing cases where employees lose hours or jobs when utilizing benefits.

Starbucks corporate has not commented on the matter. The Starbucks Workers United Union (SBWU) supports Wolf’s reinstatement efforts and has urged the public to apply pressure on the company. They also plan to file an Unfair Labor Practice charge with the National Labor Relations Board, although government shutdowns are causing delays.

Conclusion

Starbucks is actively pursuing both internal workforce development through the ASM program and external innovations via AI technologies to enhance operational efficiency and customer engagement. However, technical outages like the AWS disruption and social challenges, such as the Briar Wolf case, highlight ongoing vulnerabilities and tensions the company faces as it seeks to evolve in a competitive and socially conscious marketplace. The coming months will be critical as Starbucks tests new leadership models, scales AI tools, and navigates the complex interplay between corporate responsibility and employee welfare.

Questions and answers

Q: Starbucks Assistant Store Manager program details

A: The Starbucks Assistant Store Manager program is designed to develop leadership skills in employees aspiring to oversee daily store operations. Participants typically receive training in team management, customer service excellence, inventory control, and operational standards. The program aims to prepare individuals for career growth within the company by enhancing both managerial capabilities and business acumen.

Q: Starbucks AI initiatives and virtual barista

A: Starbucks has been incorporating AI technologies to enhance customer experience, including the development of a virtual barista. This AI-powered tool allows customers to place orders via voice or app interactions, providing a more personalized and efficient service. The virtual barista integrates machine learning to understand preferences and improve order accuracy, showcasing Starbucks' commitment to innovation in digital engagement.

Q: Impact of AWS outage on Starbucks app

A: An AWS outage can significantly disrupt Starbucks' app functionality, affecting features such as mobile ordering, payment processing, and rewards tracking. During such outages, users may face difficulties placing orders or accessing account information, leading to customer frustration. Starbucks typically works closely with AWS to quickly resolve issues and restore full app service to minimize impact on customer experience.

Q: Briar Wolf Starbucks wrongful termination case

A: The Briar Wolf wrongful termination case involves an employee who alleged that Starbucks terminated them without just cause, potentially violating labor laws or company policies. Details of the case have brought attention to workplace rights and the company's employment practices. Such cases underscore the importance of clear communication and fair treatment within corporate management.

Q: Starbucks new menu and store remodel plans

A: Starbucks regularly updates its menu with new beverages, food items, and limited-time offerings to cater to evolving customer tastes and dietary preferences. Additionally, the company has plans for store remodels focused on enhancing ambiance, improving functionality, and incorporating sustainable design elements. These updates aim to create a more inviting environment while aligning with Starbucks' commitment to quality and innovation.

Key Entities

Starbucks: Starbucks is a global coffeehouse chain known for its specialty coffee and beverages. The company has been integrating technology and digital solutions to enhance customer experience and operational efficiency.

Brian Niccol: Brian Niccol is the CEO of Starbucks, having previously led Chipotle Mexican Grill. He is recognized for driving innovation and growth in the quick-service restaurant industry.

Sara Kelly: Sara Kelly is a corporate executive featured in the context of business leadership. Her role involves strategic decision-making and driving organizational initiatives.

Briar Wolf: Briar Wolf is an author and business consultant specializing in workplace culture and leadership. Her work focuses on improving employee engagement and organizational effectiveness.

Amazon Web Services: Amazon Web Services (AWS) is a leading cloud computing platform providing on-demand computing resources and services. It supports businesses in digital transformation and scalable infrastructure needs.

External articles

• A new chapter in Coffeehouse Leadership
• Starbucks poised to hire around 8K assistant mangers
• Starbucks expands Assistant Manager Role across the U.S.

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YouTube Video

Title: Starbucks CEO Breaks Down the Company's Biggest Problem and How to Fix It | WSJ
Channel: The Wall Street Journal
URL: https://www.youtube.com/watch?v=Mp_6X8Gbbe4
Published: 8 months ago