Personalized digital menus are among the ideas Starbucks is considering for customers who agree to be identified when they walk in, according to Gizmodo.
Here's what to know
Greater use of artificial intelligence is among the plans CEO Brian Niccol discussed on an Oct. 29 earnings call, the outlet reported.
Starbucks' planned "major tech modernization" is scheduled for 2027.
"We're also exploring experiences that recognize participating customers as they arrive, present personalized digital menus, and make payment more effortless," Niccol remarked.
Niccol described a service for participating customers, not a system that would recognize everyone entering a store. Gizmodo's report does not establish how customers would enroll, what information would identify them, or how that information would be protected.
The proposal remains exploratory, and the article does not describe a finished service or specify the technology Starbucks would use to recognize customers.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
More background
In a film scene Gizmodo used to illustrate Starbucks' proposal, a Gap system asks actor Tom Cruise's character about an earlier purchase.
The exchange, from director Steven Spielberg's 2002 film Minority Report, follows an eye scan and personalized greeting after Cruise's character enters the store.
Of course, the comparison does not mean Starbucks plans to scan customers' eyes.
Recognizing a customer and tailoring a sales pitch can involve personal information, but the company's approach remains unspecified — and Niccol alluded to boosting the company's use of AI applications.
The computing systems behind AI require immense amounts of electricity, and the infrastructure supporting them consumes substantial energy and water.
AI could help optimize clean-energy systems, but it also carries risks of data security breaches, misuse, and unintended societal consequences.
Gizmodo's report does not provide figures for the electricity or water Starbucks' proposed technology would require if the marketing initiative were AI-powered.
What's being done?
Starbucks is also planning a separate test of AI in its drive-thrus.
Gizmodo credits More Perfect Union with the initial report on the earnings call. The call included plans for "background AI models in the drive-thru that help our baristas input orders more accurately and efficiently as they interact with customers."
More accurate order entry is the stated goal, not a demonstrated result from a completed rollout.
A Starbucks spokesperson replied to Gizmodo's request for details by email.
"We're in the early stages of exploring ways to improve the Starbucks drive-through customer experience," they wrote.
The response did not explain how arrival recognition would work or what safeguards would protect customer information.
"We're early in this work, and we'll test, learn, and scale what works," Niccol told investors.
Where can I learn more?
Other businesses are also exploring ways to identify customers, personalize recommendations, and use AI to help with service. These stories cover facial-recognition payments, customer tracking, meal suggestions, and human-led drive-thru ordering.
• London coffee shops are testing pay-by-face checkout with Revolut, which is offering £1 coffee.
• Startup Outlit wants AI agents tracking every customer to help businesses retain their customers.
• McDonald's AI tracks customers' willingness to pay as prices for Big Macs differ, according to Reuters.
• Chick-fil-A says drive-thru ordering will stay human as competing restaurant chains test AI.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
