Starbucks has scrapped an AI inventory‑counting tool it rolled out across North America just nine months earlier, reverting to traditional manual counting after the system delivered inconsistent results and frequent miscounts.
The automated system, known internally as “Automated Counting,” used tablets equipped with cameras and spatial‑vision technology developed by Redmond‑based startup NomadGo to scan shelves and tally beverage components such as syrups and milk in more than 11,000 company‑operated Starbucks locations. The company had billed the tool as a cornerstone of its “Back to Starbucks” operational overhaul under CEO Brian Niccol, aiming to cut down on product shortages that had been hurting sales.
According to internal documents reviewed by Reuters, Starbucks told staff this week that the program was being retired and that beverage components and milk would now be counted the same way as other inventory categories in the coffeehouse. The decision came after reports earlier this year that the AI‑powered tool frequently miscounted items or mislabeled visually similar products, such as different milk variants, and in some cases missed items altogether.
In a statement, Starbucks said the move was intended to standardize how inventory is counted across its stores as it continues to focus on consistency and large‑scale execution. The company added that it is working toward more frequent daily replenishments and ongoing supply‑chain improvements, reiterating that the goal is to ensure that any item on the menu remains available for customers. NomadGo, which also provides inventory‑AI solutions to other restaurant chains, said it is using feedback from partnerships such as Starbucks to refine its technology and improve accuracy.
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