Starbucks (SBUX) Launches ChatGPT Beta App for Drink Discovery

TLDR

• Starbucks has rolled out a beta application integrated within ChatGPT, designed to help customers find new beverages using conversational input prompts.
• Users can share their current mood or flavor preferences to receive tailored drink recommendations, though they must finalize their orders through the official Starbucks mobile app or website.
• This initiative falls under CEO Brian Niccol’s “Back to Starbucks” turnaround strategy, which also includes streamlining menu offerings, adding more in-store seating, and making adjustments to the brand’s loyalty program.
• Starbucks already leverages AI technology via Green Dot Assist, a barista-facing tool developed using Microsoft Azure’s OpenAI platform.
• Year-to-date, SBUX stock has climbed 17%, coming off the brand’s first quarter of growing customer transactions following two consecutive years of foot traffic declines.

(SeaPRwire) –   On Wednesday, Starbucks rolled out its beta app embedded in ChatGPT, which allows customers to describe what they’re craving and receive tailored drink suggestions in return. It offers an alternative approach to exploring the menu, one that starts with a user’s mood instead of manually scrolling through options.

*STARBUCKS CUSTOMERS CAN NOW CUSTOMIZE AND PLACE DRINK ORDERS VIA CHATGPT$SBUX patrons will now be able to access a new AI tool within ChatGPT that functions as your personal barista. The tool will be able to recommend and help arrange orders for drinks based on its interpretation of your stated mood

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To access the feature, customers first activate the Starbucks integration via ChatGPT’s app directory, then type a prompt containing the tag “@Starbucks.” Once connected, they can adjust their order to their preferences and select a pickup location. However, the final payment and order confirmation must be completed through the Starbucks app or official website, ensuring all transactions stay within the brand’s loyalty program ecosystem.

Paul Riedel, senior vice president of digital and loyalty at Starbucks, stated it simply: “Customers aren’t always starting their journey by browsing a menu. They’re starting with a current mood or craving.”

Starbucks Corporation, trading under ticker SBUX

This new feature is not only focused on improving user convenience. Helping customers find new drinks has emerged as a key priority for Starbucks, particularly when engaging with Gen Z consumers, who are far more likely to seek out unique, personalized drinks than older age groups. Meeting this spontaneous demand, no matter what platform it originates on, is a key focus for the brand.

Part of a Larger Turnaround Strategy

The launch of the ChatGPT integration is part of CEO Brian Niccol’s broader “Back to Starbucks” plan, which he has overseen since assuming his position as chief executive. The strategy centers on bringing back the classic, welcoming coffeehouse atmosphere after years of the brand prioritizing high mobile order volumes over in-store experience.

This has involved reintroducing comfortable, cozy in-store seating, reducing overly complicated menu offerings, revamping the loyalty program, and establishing more transparent service guidelines for staff. The end goal is a warmer, more inviting in-store experience, where technology supports operations in the background rather than replacing the human touch of baristas.

Wednesday’s app launch aligns perfectly with this framework. AI takes care of helping users find their ideal drink, while human baristas still prepare all orders.

This is also not Starbucks’ first foray into generative AI tools. Last year, the brand launched Green Dot Assist, an AI assistant made for baristas that was built using Microsoft Azure’s OpenAI platform. Additional tools currently in the pipeline include voice-activated ordering and more accurate demand forecasting systems.

Indications the Strategy Is Delivering Results

Following two consecutive years of declining customer foot traffic, Starbucks reported growing transaction numbers in its fiscal first quarter, which concluded on December 28. This marked the first quarter of growth in that two-year period, and came just as Niccol’s planned changes were starting to take effect.

Starbucks has also added drink discovery features to its own proprietary mobile app, including a trending drinks section and a “secret menu” tab located under the offers section. The new ChatGPT beta extends this same functionality to a platform that already counts millions of daily active users.

Other major consumer-facing brands are rolling out comparable integrations. Walmart, Etsy, and Booking.com are all currently testing shopping and checkout features that work directly through ChatGPT’s interface.

SBUX stock has risen 17% since the start of the year. The beta app officially launched on Wednesday morning.