The coffee chain is reverting to manual counts nine months after deploying the tool across North American stores
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Reuters obtained a company-wide memo sent Monday and had its contents confirmed by two employees, which formally announced the program's end. The memo stated: "Starting today, Automated Counting will be retired. Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse."
NomadGo, a Seattle-based company, developed the system, which relied on LiDAR sensors and tablet cameras to generate automated tallies of syrups, milks, and similar beverage products stored on store shelves. Though the technology predated Niccol's arrival, he chose to push it into stores across North America shortly after assuming the CEO role in September 2024. Where workers had previously tallied stock by hand, the app was meant to handle those counts automatically, with the promise of greater speed and fewer errors.
The program struggled with basic product identification. Errors were common, Reuters found, with the system routinely confusing visually similar products like different milk varieties or overlooking stocked items altogether. A Starbucks promotional video from the launch period captured the malfunction plainly: a peppermint syrup bottle sitting on the shelf went unregistered as the system scanned the surrounding bottles on either side of it.
In a statement to Reuters, Starbucks framed the decision as a move toward consistency rather than an acknowledgment of failure. Starbucks attributed the change to "a decision to standardize how inventory is counted across coffeehouses as we continue to focus on consistency and execution at scale," and noted separately that the company is pursuing daily restocking cycles and ongoing improvements to its supply chain. "Our goal is simple — if it's on the menu, customers should be able to order it," the company said.
Internal feedback shared by Starbucks was less diplomatic. Among the screenshots Starbucks shared was a note from a store employee that captured a common sentiment: "Thanks for discontinuing Automatic Counting! The thought behind it was great, but the execution was proving difficult."
Getting the right products onto shelves has frustrated Starbucks leadership for years, with multiple chief executives citing stock gaps as a factor weighing on revenue. Inventory automation had been positioned as a centerpiece of the "Back to Starbucks" turnaround, part of a broader technology push that also includes AI-driven tools for sequencing drink orders and supporting baristas during busy periods.
In a statement provided to Reuters, NomadGo said the company is "continuously learning from customer and user feedback" as it works to refine its offerings.
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