Starbucks plans AI drive-thru menus that recognise returning customers
Starbucks wants drive-thru boards that greet regulars with a menu built for them, with AI order tests from 2027. Here is what it could mean in India.
Key points
- Starbucks chief executive Brian Niccol said the chain will explore recognising participating customers at the drive-thru and showing them personalised digital menus.
- Starbucks plans to begin testing background AI models in 2027 that help baristas input drive-thru orders more accurately and efficiently.
- Any Indian rollout would run through Tata Starbucks and need clear customer consent under the Digital Personal Data Protection Act, 2023.
Photo: Florian Hirzinger - www.fh-ap.com / Wikimedia Commons, CC BY-SA 3.0 (cropped). Representational image.
The News
Starbucks is preparing to bring artificial intelligence to the drive-thru lane, with plans that include menu boards tailored to the individual customer in the car. Chief executive Brian Niccol set out the ambition on the company's earnings call on Thursday, saying the chain will explore ways to identify participating customers as they pull in, show them a personalised digital menu and smooth out the payment step.
The timeline is open-ended for the personalised boards, but one element has a date. From 2027, Starbucks will start testing AI models running in the background at drive-thru windows, designed to help baristas take down orders more accurately and quickly. Niccol described the work as "early", adding that the company will "test, learn, and scale what works."
The plans extend to the Starbucks app, where AI is set to power search and discovery, and the company may eventually allow "conversational and agentic" ordering. Starbucks already accepts orders placed through ChatGPT and has deployed Green Dot Assist, an AI tool staff can query about recipes and service standards.
Why It Matters
Quick-service chains are racing to turn the drive-thru into a data-driven sales channel. Taco Bell is trialling boards that change layout and content car by car, and McDonald's is piloting a feature in a small number of locations that lets its ArchIQ chatbot spot repeat customers and offer their usual order. Starbucks joining the pack signals that personalisation at the point of sale is becoming a standard industry bet rather than an experiment.
The history here is mixed. McDonald's ended its automated voice-ordering trial with IBM in 2024 after testing it in more than 100 US restaurants. That episode is a reminder that drive-thru AI lives or dies on accuracy, which may explain why Starbucks is framing its 2027 tests around helping baristas rather than replacing them.
For investors, the logic is basic: a menu that surfaces the right add-on to a known customer can lift average ticket size without adding staff. The harder question is whether customers accept being recognised the moment they arrive.
Indian Angle
In India, Starbucks operates through Tata Starbucks, a 50:50 joint venture with Tata Consumer Products that opened its first outlet in 2012. Any personalisation technology that reaches Indian stores would therefore pass through a Tata-run operation.
The regulatory bar is the bigger issue. Recognising a customer on arrival, whether through an app's location signal, a loyalty account or a vehicle number plate, involves processing personal data. Under the Digital Personal Data Protection Act, 2023, a business must obtain clear, specific consent for such use and let customers withdraw it. Starbucks' own wording about "participating customers" suggests an opt-in model, which is the approach Indian law would require.
There is also a payments angle. Starbucks talks about making payment more effortless; in India that friction has already been largely removed by UPI, which dominates small-ticket retail transactions. Indian chains may find more value in AI-assisted ordering and app discovery than in the payment piece that US operators are still trying to solve.
FAQ
When will personalised drive-thru menus appear at Starbucks?
Starbucks has not given a date. Niccol called the work early and said the company will test, learn and scale what works. The only firm timeline is for background AI models that help baristas input orders, which Starbucks plans to begin testing in 2027.
How would Starbucks recognise customers?
The company has not specified the method. Niccol referred to recognising participating customers, which suggests an opt-in arrangement, likely tied to the Starbucks app or loyalty programme. Details on what data would be used have not been disclosed.
Will this come to Starbucks stores in India?
There has been no announcement for India. Indian outlets are run by Tata Starbucks, the joint venture with Tata Consumer Products, so any rollout would be its decision and would need to comply with the Digital Personal Data Protection Act, 2023 on consent.
How does this compare with other chains?
Taco Bell is experimenting with menu boards that change for each car, and McDonald's is piloting a feature that lets its ArchIQ chatbot identify repeat customers and suggest their usual order.
This story was reported by The Verge. Read the full original coverage at The Verge.