Starbucks customers across North America face empty shelves and missing menu items today. The coffee giant currently struggles to keep its popular breakfast sandwiches in stock. These Starbucks supply chain issues stem from a variety of complex and systemic factors. CEO Brian Niccol faces a monumental task in fixing these operational cracks. Consequently, the company must overhaul its fragmented logistics network immediately. However, the promised digital solutions remain elusive for many store managers.

Baristas frequently report that the once-reliable morning routine has turned into a daily apology. Specifically, the “Back to Starbucks” turnaround plan hits a wall when the food cases remain bare. Therefore, customers often leave the stores without making a purchase. This trend significantly threatens the company’s premium brand image. Moreover, the lack of sandwiches creates a ripple effect throughout the entire morning shift.

Central to these Starbucks supply chain issues is a recent push toward automation. The company partnered with NomadGo to deploy an AI-powered inventory system. This technology uses computer vision to count milk jugs and pastry boxes. Theoretically, the system should ensure 99% accuracy in every store. Nevertheless, employees on the ground tell a very different story. They report that the AI frequently miscounts items or misses them entirely. For instance, the software often confuses different types of milk. Consequently, the system orders the wrong quantities of essential products.

Instead of saving time, the new technology often adds to the barista’s workload. Many workers must manually correct the faulty AI counts every single day. Furthermore, the glitches lead to “ghost inventory,” where the system thinks items exist. In reality, the shelves are actually empty. Therefore, these Starbucks supply chain issues persist despite the expensive technological investments. Baristas feel the pressure of managing these failures during the busiest hours. Similarly, the friction between automation and reality causes significant stress in the cafes.

Beyond the tech glitches, the supplier network remains highly fragmented and fragile. Starbucks relies on a vast web of approximately 1,500 different vendors for various items. These scattered suppliers often struggle to coordinate their deliveries effectively. Consequently, a store might have coffee beans but no lids for the cups. Specifically, the cold-chain logistics for breakfast sandwiches have proven particularly vulnerable recently.

Last-mile delivery bottlenecks prevent fresh food from reaching regional distribution hubs on time. Moreover, the company’s reliance on smaller regional vendors complicates the scaling process. When demand spikes, these suppliers often cannot increase production quickly enough. Consequently, these Starbucks supply chain issues lead to widespread shortages of bacon and egg wraps. Furthermore, the logistics team must navigate a maze of inconsistent delivery standards. Indeed, reports suggest that less than a third of truck deliveries arrive on time.

Additionally, the global Memory Chip market is growing as AI servers and high-performance computing drive unprecedented demand for storage and faster processing. This growth in the tech sector highlights the broader reliance on hardware that powers modern retail. However, Starbucks still relies on some surprisingly ancient technology for its core operations. Specifically, some inventory systems still run on IBM AS/400 hardware from the late nineties. This legacy tech creates a bottleneck for modern data integration. Therefore, the Starbucks supply chain issues are partly a result of outdated digital infrastructure.

CEO Brian Niccol has hired veteran logistics executives to bridge this gap. These new leaders bring experience from tech giants and massive grocery chains. Nevertheless, transforming a global supply chain is like changing an airplane engine mid-flight. The company must simplify its menu to reduce the number of unique items. Consequently, this SKU rationalization should make the supplier network more manageable. Furthermore, the company aims to give store managers more autonomy over their local orders.

Ultimately, these Starbucks supply chain issues impact the bottom line and investor confidence. The company’s stock has shown volatility as analysts monitor the progress of the turnaround. While sales figures have remained flat, the operational drag is undeniable. Therefore, the leadership team must prove that their “Back to Starbucks” strategy can deliver results. Customers expect their favorite sandwiches to be available during every visit.

In addition, the company must address the growing frustration among its frontline partners. Baristas are the face of the brand, yet they bear the brunt of these failures. They manage the fallout when the AI fails, and the trucks do not arrive. Similarly, the pressure of manual inventory counting leads to higher employee burnout. Consequently, solving the Starbucks supply chain issues is as much about people as it is about logistics.

Looking forward, the company plans to refine its Deep Brew AI platform. This internal tool aims to improve labor scheduling and personalized marketing. However, the core logistics must function before these advanced features can truly shine. Moreover, the integration of more reliable hardware will be essential for future success. Indeed, the Starbucks supply chain issues serve as a cautionary tale for other retail giants. Technology cannot fix a broken foundation without proper human-centered implementation.

Specifically, the company must ensure its vendors are as agile as its marketing department. As the market evolves, the pressure to maintain a seamless experience will only grow. Therefore, these Starbucks supply chain issues remain the most critical hurdle for the new CEO. If the company fails to stock its sandwiches, it risks losing the morning crowd forever. Nevertheless, the recent investments in logistics leadership suggest a serious commitment to change.