Ransomware attack on vendor slows operations at Starbucks

Starbucks has announced that a ransomware attack on one of its software suppliers is causing significant disruptions in their operations, particularly affecting their ability to pay baristas and manage schedules. This situation has forced cafe managers to manually calculate employee pay, a task that is typically automated.

Starbucks told the Wall Street Journal (WSJ) on Monday a third-party vendor experienced an outage starting late last week. This outage has disrupted the systems that employees use to view and manage their schedules and the tools Starbucks uses to track working hours. The issue has impacted around 11,000 Starbucks-owned stores across North America. Despite these challenges, the company assured customers that service would remain unaffected.

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In response to the outage, Starbucks is currently paying employees based on their scheduled shifts. This interim solution means that some employees might be overpaid or underpaid, depending on the actual hours they worked. However, Starbucks has committed to ensuring that all baristas will be compensated for the exact hours they have worked once the issue is resolved.

Jaci Anderson, Corporate Communications Director at Starbucks, told MyNorthwest via email that the company is working closely with the vendor to get a resolution. In the meantime, store leaders have been provided guidance to work around the problem manually. She said the outage is not impacting how customers are served.

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The supplier in question, Blue Yonder, is a U.K.-based division of Panasonic that provides supply-chain software to various retailers, including Starbucks. Blue Yonder disclosed on Thursday a ransomware attack had disrupted its services. The company has been working to resolve the issue and restore normal operations.

Ransomware attacks have become an increasingly common tactic cybercriminals use to target companies. These attacks can cause significant and sometimes long-lasting disruptions, posing serious challenges for retailers and other businesses.

MyNorthwest reached out to Starbucks for comment and has not heard back.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.