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Starbucks' Vision for Efficiency | Fast Five Shorts · Omni Talk Retail

• 0:00
  Starbucks
• 0:00
  is
• 0:00
  deploying
• 0:01
  computer
• 0:01
  vision
• 0:01
  technology
• 0:02
  to
• 0:02
  help
• 0:02
  the
• 0:02
  chain
• 0:03
  track
• 0:03
  its
• 0:03
  in
• 0:03
  store
• 0:04
  stock
• 0:04
  and
• 0:05
  possibly
• 0:05
  even
• 0:05
  to
• 0:06
  automate
• 0:06
  some
• 0:06
  ordering.
• 0:07
  According
• 0:07
  to
• 0:08
  Supply
• 0:08
  Chain
• 0:08
  Dive,
• 0:09
  the
• 0:09
  tech
• 0:09
  developed
• 0:10
  in
• 0:10
  conjunction
• 0:10
  with
• 0:10
  Nomad
• 0:11
  Go,
• 0:12
  is
• 0:12
  currently
• 0:12
  live.
• 0:12
  Yeah,
• 0:13
  Nomad
• 0:13
  Go,
• 0:14
  it's
• 0:14
  a
• 0:14
  great
• 0:14
  name.
• 0:15
  Yeah.
• 0:16
  It's
• 0:16
  currently
• 0:16
  live
• 0:16
  across
• 0:17
  thousands
• 0:18
  of
• 0:18
  coffee
• 0:18
  houses
• 0:19
  and
• 0:19
  will
• 0:20
  be
• 0:20
  in
• 0:20
  use
• 0:21
  across
• 0:21
  the
• 0:21
  chain's
• 0:22
  entire
• 0:22
  North
• 0:22
  American
• 0:22
  company
• 0:23
  operated
• 0:23
  store
• 0:24
  system
• 0:24
  by
• 0:24
  the
• 0:24
  end
• 0:25
  of
• 0:25
  September,
• 0:26
  according
• 0:26
  to
• 0:26
  Deb
• 0:27
  Haul.
• 0:27
  Lefebvre.
• 0:29
  I'm
• 0:29
  going
• 0:29
  to
• 0:29
  go
• 0:29
  with
• 0:29
  Lefebvre.
• 0:30
  This
• 0:30
  is
• 0:30
  my
• 0:30
  favorite
• 0:30
  name
• 0:31
  of
• 0:31
  any
• 0:31
  name.
• 0:31
  It's
• 0:32
  like,
• 0:32
  it's
• 0:32
  like
• 0:32
  Brett
• 0:32
  Favreau.
• 0:33
  Yeah.
• 0:33
  In
• 0:34
  Something
• 0:34
  about
• 0:34
  Mary.
• 0:35
  Yeah,
• 0:35
  I
• 0:35
  know
• 0:35
  you
• 0:36
  mentioned
• 0:36
  that.
• 0:37
  Yeah,
• 0:37
  like
• 0:37
  how
• 0:37
  do
• 0:38
  you.
• 0:38
  Yeah,
• 0:38
  well,
• 0:39
  Debfevre.
• 0:40
  Deb,
• 0:40
  you
• 0:40
  know
• 0:40
  how
• 0:40
  to
• 0:40
  get
• 0:41
  in
• 0:41
  touch
• 0:41
  with
• 0:41
  us.
• 0:42
  She
• 0:42
  is
• 0:43
  Starbucks
• 0:43
  chief
• 0:44
  technology
• 0:44
  officers
• 0:45
  and
• 0:45
  she
• 0:45
  says
• 0:45
  that
• 0:46
  in
• 0:46
  cafes
• 0:46
  using
• 0:47
  the
• 0:47
  artificial
• 0:48
  intelligence
• 0:49
  systems,
• 0:50
  quote,
• 0:50
  inventory
• 0:51
  is
• 0:51
  now
• 0:51
  counted
• 0:51
  eight
• 0:52
  times
• 0:53
  more
• 0:53
  frequently,
• 0:54
  giving
• 0:54
  us
• 0:54
  real
• 0:54
  time
• 0:54
  visibility
• 0:55
  and
• 0:55
  enabling
• 0:56
  faster,
• 0:56
  more
• 0:56
  precise
• 0:57
  replenishment.
• 0:58
  End
• 0:58
  quote.
• 0:59
  A
• 0:59
  publicity
• 0:59
  video
• 1:00
  shared
• 1:00
  with
• 1:00
  the
• 1:00
  announcement
• 1:01
  shows
• 1:01
  workers
• 1:01
  scanning
• 1:02
  fridges
• 1:02
  and
• 1:02
  stock
• 1:02
  rooms
• 1:03
  with
• 1:03
  the
• 1:03
  cameras
• 1:03
  on
• 1:04
  store
• 1:04
  tablets
• 1:04
  which
• 1:05
  automatically
• 1:05
  tabulate
• 1:06
  the
• 1:06
  amount
• 1:07
  and
• 1:07
  type
• 1:08
  of
• 1:08
  ingredients
• 1:09
  on
• 1:09
  hand.
• 1:10
  Chris,
• 1:10
  are
• 1:10
  you
• 1:11
  for
• 1:11
  or
• 1:12
  against
• 1:12
  Starbucks
• 1:12
  experimenting
• 1:13
  with
• 1:13
  computer
• 1:14
  vision
• 1:14
  to
• 1:14
  help
• 1:15
  track
• 1:15
  store
• 1:16
  inventory?
• 1:16
  Oh,
• 1:17
  I'm
• 1:17
  100%
• 1:17
  for
• 1:18
  this,
• 1:18
  yeah.
• 1:18
  100.
• 1:19
  Explain
• 1:19
  why.
• 1:20
  Well,
• 1:20
  it's
• 1:20
  very
• 1:21
  simple
• 1:21
  and
• 1:21
  because
• 1:22
  Starbucks
• 1:22
  needs
• 1:23
  to
• 1:23
  find
• 1:23
  a
• 1:23
  way
• 1:23
  to
• 1:23
  free
• 1:23
  up
• 1:23
  its
• 1:24
  stack
• 1:24
  to
• 1:24
  actually
• 1:25
  fill
• 1:25
  orders.
• 1:26
  Right.
• 1:26
  And
• 1:27
  so
• 1:27
  if
• 1:27
  they're
• 1:27
  gonna
• 1:27
  try
• 1:28
  to
• 1:28
  experiment
• 1:28
  with
• 1:28
  this
• 1:29
  through
• 1:29
  the
• 1:29
  future
• 1:29
  of
• 1:29
  automated
• 1:30
  ordering.
• 1:30
  Yeah,
• 1:30
  I'm
• 1:30
  all
• 1:30
  in.
• 1:31
  Because
• 1:31
  the
• 1:31
  most
• 1:31
  telling
• 1:32
  statistic
• 1:32
  to
• 1:32
  me
• 1:32
  in
• 1:33
  the
• 1:33
  article
• 1:33
  was
• 1:33
  actually
• 1:34
  buried
• 1:34
  at
• 1:34
  the
• 1:34
  end.
• 1:35
  I'm
• 1:35
  guessing
• 1:35
  you
• 1:35
  saw
• 1:35
  it
• 1:36
  too,
• 1:37
  where
• 1:37
  they
• 1:37
  talked
• 1:38
  about
• 1:38
  how
• 1:38
  Starbucks
• 1:39
  recently
• 1:40
  revealed
• 1:40
  that
• 1:40
  they're
• 1:41
  testing
• 1:41
  something
• 1:41
  called
• 1:41
  the
• 1:42
  smart
• 1:42
  queue
• 1:42
  ordering
• 1:43
  sequencing
• 1:44
  platform,
• 1:44
  which
• 1:44
  is
• 1:45
  hard
• 1:45
  to
• 1:45
  say.
• 1:45
  The
• 1:45
  smart
• 1:45
  queue
• 1:46
  ordering
• 1:46
  sequencing
• 1:47
  platform.
• 1:47
  And
• 1:48
  here's
• 1:48
  what
• 1:48
  Nicol
• 1:49
  Brian
• 1:49
  Nichols,
• 1:49
  the
• 1:49
  CEO
• 1:50
  of
• 1:50
  Starbucks
• 1:50
  said
• 1:50
  and
• 1:50
  I
• 1:50
  wanna
• 1:51
  make
• 1:51
  sure
• 1:51
  I
• 1:51
  get
• 1:51
  this
• 1:51
  right,
• 1:51
  so
• 1:51
  I'm
• 1:52
  gonna
• 1:52
  read
• 1:52
  it
• 1:52
  out
• 1:52
  loud.
• 1:53
  So
• 1:53
  he
• 1:53
  said,
• 1:53
  quote,
• 1:54
  since
• 1:54
  testing
• 1:55
  the
• 1:55
  algorithm,
• 1:56
  it
• 1:56
  has
• 1:56
  driven,
• 1:57
  quote,
• 1:57
  a
• 1:57
  double
• 1:57
  digit
• 1:58
  improvement
• 1:58
  in
• 1:58
  cafe
• 1:59
  orders
• 1:59
  handed
• 2:00
  off
• 2:00
  in
• 2:00
  under
• 2:00
  four
• 2:00
  minutes,
• 2:01
  with
• 2:02
  80%
• 2:02
  of
• 2:02
  in
• 2:03
  cafe
• 2:03
  orders
• 2:03
  now
• 2:04
  meeting
• 2:04
  that
• 2:04
  target,
• 2:04
  end
• 2:05
  quote,
• 2:05
  where
• 2:05
  the
• 2:05
  algorithm
• 2:06
  is
• 2:06
  being
• 2:06
  tested.
• 2:07
  Okay,
• 2:08
  so
• 2:08
  think
• 2:08
  about
• 2:08
  what
• 2:08
  that
• 2:09
  statement
• 2:09
  means.
• 2:09
  And
• 2:09
  that
• 2:09
  means
• 2:10
  that
• 2:10
  20%
• 2:11
  of
• 2:11
  the
• 2:12
  orders,
• 2:12
  yes,
• 2:13
  where
• 2:13
  this
• 2:13
  is
• 2:13
  showing
• 2:14
  a
• 2:14
  massive
• 2:14
  improvement,
• 2:15
  are
• 2:16
  still
• 2:16
  not
• 2:16
  meeting
• 2:16
  the
• 2:17
  customer
• 2:17
  service
• 2:17
  expectation
• 2:18
  of
• 2:18
  under
• 2:18
  four
• 2:19
  minutes.
• 2:19
  That's
• 2:20
  ridiculous.
• 2:21
  That
• 2:21
  means
• 2:21
  you
• 2:21
  have
• 2:22
  a
• 2:22
  massive
• 2:22
  problem
• 2:23
  and
• 2:23
  you
• 2:23
  have
• 2:23
  no
• 2:24
  idea
• 2:24
  what
• 2:24
  the
• 2:24
  dispersion
• 2:25
  of
• 2:25
  that
• 2:26
  is
• 2:26
  either.
• 2:26
  Like,
• 2:26
  are
• 2:26
  some
• 2:26
  people
• 2:27
  waiting
• 2:27
  10:15
• 2:28
  minutes.
• 2:28
  I
• 2:29
  mean,
• 2:29
  I've
• 2:29
  been
• 2:29
  putting
• 2:30
  my
• 2:30
  orders
• 2:30
  in.
• 2:30
  It's
• 2:30
  taken
• 2:31
  a
• 2:31
  long
• 2:31
  time,
• 2:31
  many,
• 2:31
  many
• 2:32
  times.
• 2:32
  So
• 2:33
  that
• 2:33
  is
• 2:33
  just
• 2:33
  crazy
• 2:34
  to
• 2:34
  me.
• 2:34
  And
• 2:35
  so
• 2:35
  yes,
• 2:35
  anything
• 2:36
  that
• 2:36
  possibly
• 2:37
  chips
• 2:37
  away
• 2:37
  at
• 2:37
  that
• 2:38
  will
• 2:38
  frees
• 2:38
  up
• 2:38
  employees
• 2:39
  to
• 2:40
  make
• 2:40
  coffees
• 2:41
  more
• 2:41
  quickly.
• 2:42
  All
• 2:42
  in.
• 2:43
  Yeah,
• 2:43
  I
• 2:43
  agree.
• 2:44
  I
• 2:44
  agree
• 2:44
  it's
• 2:44
  not
• 2:45
  automated
• 2:45
  coffee
• 2:46
  makers
• 2:46
  yet,
• 2:46
  which
• 2:46
  I
• 2:46
  would
• 2:47
  still
• 2:47
  like
• 2:47
  to
• 2:47
  see.
• 2:48
  But
• 2:48
  like
• 2:48
  you
• 2:48
  said,
• 2:49
  anything
• 2:49
  that
• 2:49
  frees
• 2:50
  up
• 2:50
  time
• 2:50
  for
• 2:50
  the
• 2:50
  barist
• 2:51
  to
• 2:51
  be
• 2:51
  more
• 2:52
  focused
• 2:52
  on
• 2:53
  getting
• 2:53
  in
• 2:53
  front
• 2:53
  of
• 2:54
  customers
• 2:54
  and
• 2:55
  making
• 2:55
  coffee
• 2:56
  more
• 2:56
  quickly,
• 2:56
  the
• 2:56
  better.
• 2:57
  The
• 2:57
  second
• 2:57
  part
• 2:58
  of
• 2:58
  this
• 2:58
  is
• 2:59
  I
• 2:59
  didn't
• 2:59
  realize
• 3:00
  what
• 3:01
  a
• 3:01
  problem
• 3:02
  Starbucks
• 3:02
  had
• 3:02
  with
• 3:03
  out
• 3:03
  of
• 3:03
  stocks
• 3:04
  until
• 3:04
  this
• 3:05
  article
• 3:06
  and
• 3:06
  started
• 3:07
  going
• 3:07
  into
• 3:08
  that.
• 3:08
  I've
• 3:08
  never
• 3:08
  actually
• 3:09
  encountered
• 3:09
  that.
• 3:09
  That
• 3:10
  to
• 3:10
  me
• 3:10
  is
• 3:10
  a
• 3:11
  huge
• 3:11
  problem
• 3:11
  because
• 3:12
  when
• 3:12
  I
• 3:12
  think
• 3:12
  about
• 3:13
  the
• 3:13
  future
• 3:13
  success
• 3:13
  of
• 3:14
  Starbucks,
• 3:14
  it's
• 3:14
  not
• 3:14
  whether
• 3:15
  or
• 3:15
  not
• 3:15
  there's
• 3:15
  a
• 3:15
  coffee
• 3:16
  house
• 3:16
  that
• 3:16
  I
• 3:16
  can
• 3:17
  sit
• 3:17
  in
• 3:17
  and
• 3:17
  work
• 3:17
  or
• 3:18
  not.
• 3:19
  Starbucks
• 3:19
  is
• 3:20
  sold
• 3:20
  100%
• 3:21
  on
• 3:21
  reliability.
• 3:22
  The
• 3:22
  reliability
• 3:23
  that
• 3:23
  whether
• 3:23
  I'm
• 3:24
  in
• 3:24
  Beijing
• 3:24
  or
• 3:24
  Boston,
• 3:25
  I
• 3:25
  can
• 3:25
  get
• 3:26
  exactly
• 3:26
  the
• 3:26
  same
• 3:27
  drink
• 3:27
  that
• 3:27
  I
• 3:27
  am
• 3:28
  expecting
• 3:28
  every
• 3:29
  single
• 3:29
  time.
• 3:29
  And
• 3:29
  if
• 3:30
  they
• 3:30
  don't
• 3:30
  have
• 3:30
  the
• 3:30
  products
• 3:31
  in
• 3:31
  stock,
• 3:31
  I'm
• 3:32
  gonna
• 3:32
  stop
• 3:32
  going
• 3:32
  to
• 3:32
  Starbucks
• 3:33
  for
• 3:33
  that.
• 3:33
  Like
• 3:33
  I'm.
• 3:34
  Has
• 3:34
  that
• 3:34
  ever
• 3:34
  happened
• 3:34
  to
• 3:34
  you
• 3:35
  though?
• 3:35
  Yes,
• 3:35
  for
• 3:36
  sure.
• 3:36
  Really?
• 3:36
  Oat
• 3:37
  milk
• 3:37
  is
• 3:37
  out
• 3:37
  of
• 3:37
  stock
• 3:38
  or
• 3:39
  like
• 3:39
  I
• 3:40
  like
• 3:40
  a
• 3:40
  vanilla
• 3:40
  bean
• 3:41
  powder
• 3:41
  and
• 3:41
  that's.
• 3:42
  There's
• 3:42
  like
• 3:42
  a
• 3:42
  lot
• 3:42
  of
• 3:43
  instances
• 3:43
  or
• 3:43
  food,
• 3:44
  other
• 3:44
  things
• 3:44
  too,
• 3:45
  like
• 3:45
  where
• 3:45
  those
• 3:45
  products
• 3:46
  are
• 3:46
  not
• 3:46
  in
• 3:46
  stock.
• 3:47
  And
• 3:47
  I
• 3:47
  think
• 3:47
  if,
• 3:48
  if
• 3:48
  you
• 3:48
  can't
• 3:49
  hit
• 3:49
  on
• 3:49
  reliably
• 3:51
  reliability
• 3:51
  Starbucks,
• 3:52
  that's
• 3:52
  where
• 3:53
  you're
• 3:53
  going
• 3:53
  to
• 3:53
  start
• 3:53
  losing
• 3:54
  people
• 3:54
  to
• 3:55
  the
• 3:55
  other
• 3:55
  local
• 3:55
  coffee
• 3:56
  houses
• 3:56
  or
• 3:56
  to
• 3:56
  somewhere
• 3:57
  else
• 3:57
  where
• 3:57
  they
• 3:58
  are
• 3:58
  having
• 3:58
  a
• 3:59
  better
• 3:59
  experience
• 3:59
  or
• 4:00
  they're
• 4:00
  getting
• 4:00
  that
• 4:00
  fast
• 4:01
  coffee
• 4:01
  that
• 4:01
  they
• 4:02
  want
• 4:02
  or
• 4:02
  the
• 4:02
  coffee
• 4:02
  house
• 4:03
  experience
• 4:03
  that
• 4:03
  they
• 4:03
  want.
• 4:03
  So
• 4:04
  to
• 4:04
  me,
• 4:05
  you
• 4:05
  know,
• 4:05
  before
• 4:06
  mobile
• 4:06
  orders,
• 4:07
  before
• 4:07
  coffee
• 4:07
  house
• 4:08
  experience
• 4:08
  enhancements,
• 4:09
  you
• 4:09
  have
• 4:09
  to
• 4:10
  make
• 4:10
  sure
• 4:11
  that
• 4:11
  this
• 4:11
  is
• 4:12
  in
• 4:12
  your
• 4:12
  products
• 4:13
  are
• 4:13
  in
• 4:13
  stock
• 4:13
  and
• 4:14
  people
• 4:14
  can
• 4:14
  get
• 4:14
  what
• 4:14
  they're
• 4:14
  looking
• 4:15
  for
• 4:15
  when
• 4:15
  they
• 4:15
  go
• 4:15
  to
• 4:15
  you.
• 4:15
  That's
• 4:16
  it.
• 4:16
  I
• 4:16
  never
• 4:16
  thought
• 4:16
  about
• 4:17
  that.
• 4:17
  I've
• 4:17
  never
• 4:17
  actually
• 4:17
  had
• 4:18
  that
• 4:18
  experience.
• 4:18
  But
• 4:18
  I
• 4:18
  also.
• 4:19
  But
• 4:19
  the
• 4:19
  other
• 4:19
  side
• 4:19
  of
• 4:20
  the
• 4:20
  coin
• 4:20
  too
• 4:20
  is
• 4:20
  like
• 4:21
  there's
• 4:21
  actually
• 4:21
  the
• 4:21
  efficiency
• 4:22
  of
• 4:22
  the
• 4:22
  inventory
• 4:23
  from
• 4:23
  deploying
• 4:23
  tools
• 4:23
  like
• 4:24
  this
• 4:24
  too,
• 4:24
  which
• 4:24
  frees
• 4:24
  up
• 4:24
  your
• 4:25
  working
• 4:25
  capital,
• 4:25
  then
• 4:26
  potentially
• 4:26
  put
• 4:26
  it
• 4:26
  back
• 4:27
  into
• 4:27
  store
• 4:27
  labor
• 4:28
  as
• 4:28
  well.
• 4:28
  So
• 4:28
  there's
• 4:28
  that
• 4:29
  side
• 4:29
  of
• 4:29
  it
• 4:29
  as
• 4:29
  well.
• 4:29
  So
• 4:30
  either
• 4:30
  way
• 4:30
  it
• 4:31
  seems
• 4:31
  like
• 4:31
  a
• 4:31
  win,
• 4:31
  win.