Starbucks Bets on In-House Tech, to Shutter 250 Stores
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Starbucks is choosing to build rather than buy technology while shrinking its North American store network, reflecting strategic trade-offs in tech autonomy, cost control, and portfolio optimization that are relevant to digital investment and store strategy in food service and hospitality.
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- Hospitality TechnologyStarbucks Bets on In-House Tech, to Shutter 250 Stores
Starbucks plans to open a technology hub in Chennai, India, in fiscal year 2027, bringing more work currently performed by third-party service providers in-house. The company is already using AI to build software for inventory tracking and maintenance management, and spends about $400 million annually on software. Meanwhile, as part of its Back to Starbucks plan, it will close 250 North American locations, about 1% of its more than 18,000 North American coffeehouses, and has completed remodels at more than 1,000 stores.