Starbucks retires NomadGo across 11,000 stores

Starbucks has retired the worker-facing inventory tool it rolled out across North America in September 2025, ending a nine-month test of an AI-backed system that was supposed to speed stock counts in stores. Reuters reported on May 21 that an internal company newsletter told employees, “Starting today, Automated Counting will be retired,” and two employees confirmed the notice. The software had been used to count milk and other beverage components in stores as part of Chief Executive Brian Niccol’s turnaround effort to reduce product shortages. Starbucks said the change was part of a move to “standardize how inventory is counted across coffeehouses” while it focuses on “consistency and execution at scale.” ### What exactly did Starbucks shut down? Starbucks shut down a program called Automated Counting, a store tool built to automate inventory counts for beverage ingredients including milk. Reuters reported the company terminated the program across its North American stores this week, citing an internal newsletter reviewed by the news agency and verified with two employees. The system had been deployed nine months earlier across the chain’s North American footprint. (cnbc.com) The September 2025 rollout was tied to NomadGo’s inventory technology and covered more than 11,000 locations in North America, according to trade coverage from the time. NomadGo CEO David Greschler said then that the deployment validated the company’s technology and would give Starbucks more frequent inventory data. ### What was the system supposed to do in stores? NomadGo said in September 2025 that its system could make inventory counting eight times faster and reach 99% accuracy. (cnbc.com) Trade coverage described the product as using spatial intelligence, computer vision and augmented reality on a smartphone or tablet to identify items and count them in real time. Starbucks’ goal was to improve store-level visibility into shortages and help staff adjust orders more quickly. (manufacturingdigital.com) Brian Niccol had made product availability a store-level measure in his broader turnaround campaign. Reuters reported that Starbucks had previously told the news agency the tool improved product availability in stores, even after questions emerged about its performance. ### Why did Starbucks pull it back? Reuters reported in February that the app frequently miscounted and mislabeled items, including confusing similar milk types or failing to register them. (manufacturingdigital.com) Reuters also said a Starbucks video showed the tool missing a peppermint syrup bottle while counting bottles next to it. Those errors mattered because store workers were using the system to track items that directly affect drink availability. (cnbc.com) An internal newsletter reviewed by Reuters told employees that beverage components and milk would now be counted the same way as other inventory categories in the coffeehouse. That language pointed to a return to manual or standard counting processes rather than a revised version of the AI system. ### How is Starbucks explaining the change? Starbucks said in a statement to Reuters on May 21 that ending the program reflected a decision to standardize counting methods across coffeehouses. (cnbc.com) The company did not describe the move as a technology failure in that statement. Instead, it said it continued to focus on consistency, execution at scale and supply chain improvements. The same statement said Starbucks is working toward more frequent daily replenishments to stores. (cnbc.com) That suggests the company is pairing the rollback with broader operational changes in how inventory is supplied and refreshed. ### What happens in stores now? North American Starbucks stores will count milk and beverage components the same way they count other inventory categories, according to the internal newsletter reviewed by Reuters. (cnbc.com) That means the chain is reverting to a standard store process while it continues supply-chain work under Niccol’s turnaround plan. Starbucks’ next visible step is the replenishment effort the company described to Reuters on May 21. (cnbc.com) The company said it is working toward more frequent, daily deliveries to stores as it tries to improve product availability without the retired Automated Counting system.