We all know that artificial intelligence (AI) is changing the way we do a lot of things. And a growing number of people are concerned about the impact of AI on jobs. Coffee giant Starbucks (SBUX) is no different, and it recently brought out a tool that allows for employees to conduct inventory counting eight times more frequently, reports noted. The news did little to help share prices, though, as shares were down nearly 3% in Tuesday afternoon’s trading.
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The new tool calls on handheld tablets to quickly scan items, and have an AI do the counting for them. It uses a combination of augmented reality, computer vision, and 3D spatial intelligence to identify stocked items, determine which are in low supply, and point those out for re-ordering accordingly. Inventory counts that used to take an hour now take only less than 15 minutes, speeding up the process substantially.
Plus, more counts can be taken throughout the day, ensuring that Starbucks locations are kept up to date in stock. This should be particularly good news for Starbucks, which has recently seen store locations run out of key items in the middle of the day. With the Back to Starbucks plan putting more weight on the in-person service concept, shoring up holes in inventory will be a vital step to getting the most out of all those new people in the cafe itself.
But What If It Weren’t Called Pumpkin Spice?
We all know the cultural phenomenon and absolute bottom-line win pumpkin spice proved to be for Starbucks. But new reports emerged that noted Pumpkin Spice was not always Pumpkin Spice. In fact, originally, Starbucks came up with “…hundreds of ideas” for drinks to release in the fall time period. Chocolate and caramel were already big winners, but then, pumpkin pushed its way to the top of the list.
And the Pumpkin Spice Latte was not originally meant to be called that. Rather, it was called the Fall Harvest Latte. But that name was overturned in favor of a name that would make it more immediately clear what customers would be drinking. Fall harvests, after all, include everything from apples to corn, depending on where you are. Thus, Pumpkin Spice stepped in, as the drink was heavily pumpkin-flavored, with cinnamon, ginger and clove making up the “spice” part.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 2.76% loss in its share price over the past year, the average SBUX price target of $100.57 per share implies 15.29% upside potential.
