Watch the demand for artificial intelligence, new curtains and teenagers

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πŸ“Œ Key idea:

Key takeaways

  • Starbucks CEO Brian Nicol said he can imagine a day when the company’s app is able to handle spoken order requests.
  • He said last week that the coffee chain is using technology primarily behind the scenes, with a focus on making stores social and attractive to spend time.

Getting your morning caffeine fix could become as simple as complaining into your phone about needing coffee.

CEO Brian Niccol recently said that artificial intelligence may one day allow Starbucks’ app (SBUX) to handle voice orders and do a better job at remembering customer preferences. He said the coffee chain is keen to use artificial intelligence to “remove friction” in how customers interact with the coffee and drinks giant.

Nicole said on Yahoo! β€œYou can literally talk into your phone, like, β€˜Hey, I need my Starbucks order. “I’ll be there in 10 minutes, and everything is going smoothly through the app.” Finance podcast recorded at a technology conference. β€œYou go to Starbucks, and your drink is ready.”

Starbucks (SBUX) is mostly experimenting with artificial intelligence and other new technologies behind the scenes as it tries to create a warm, social atmosphere in its cafes, Niccol said. The company is about a year into a turnaround effort, an attempt to stimulate sluggish sales without extensive promotions. The “Back to Starbucks” campaign aims to serve customers at the counter in four minutes and aims to revitalize inventory, which has declined by about 7% this year.

What does this news mean for investors?

Starbucks’ approach illustrates how hospitality companies may be wary of using AI in customer-facing roles today. Restaurants, like Chipotle, which have touted their embrace of new technology, have generally focused on making internal operations more efficient.

Dial plates are an exception for keeping technology in the back of the house. The displays give customers an idea of ​​where their order is in the system and when it will be ready, Nicol said.

Starbucks recently announced it was closing dozens of stores for locations that didn’t quite fit its vision. The company is renovating other locations by adding rugs and curtains, and is also considering planting plants, Nicol said. Starbucks wants customers who shop at the drive-thru, grab it and go to think that next time, they should “grab a seat,” Nichol said.

Teenagers are an obvious target audience for the company, Nichol said. They really like Starbucks drinks and can use the space to engage in good old-fashioned socializing, Nicole said.

β€œMaybe I’m being a little bit of a naive parent here, but I hope they put their phones down and reach out to each other,” he said on the podcast. β€œWe will make that space for them.”

πŸ”₯ What do you think?

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