Starbucks ChatGPT app launches beta: What can it do for your drink?

Starbucks has embedded itself inside ChatGPT, and the goal is to catch customers before they even open the menu.

The beta app, announced Wednesday, lives inside ChatGPT's app directory. Once enabled, customers can type a prompt using "@Starbucks" describing a mood, flavour craving, or occasion, and the chatbot surfaces drink suggestions.

Customisation options are available, including location selection, but the transaction itself must be completed through the Starbucks mobile app or website.

Why is Starbucks betting on ChatGPT for AI-driven discovery?

The move is rooted in a behavioural shift Starbucks has been watching for months. "Customers aren't always starting with a menu they're starting with a feeling," said Paul Riedel, the company's senior vice president of digital and loyalty.

The application functions to block user impulses which occur before users select competing brands. The beverage industry needs drink discovery capabilities to attract Gen Z customers who prefer distinct customised drinks that they can order at dining establishments.

The Starbucks application operates as an intentional system that directs customers to return their orders through its platform. The Starbucks Rewards programme serves as the primary driver of customer return business for the company because any AI solution that functions without the application will destroy their customer interaction data.

The ChatGPT integration preserves the funnel because ChatGPT handles discovery while Starbucks maintains its own system for conversion.

More to these changes are Starbucks CEO Brian Niccol has turnaround efforts on the brand, which have so far seen a re-introduction of café seating, reduction of an overly abundant menu and redesigning of the loyalty programme tiers. 

With two consecutive years of declining foot traffic, Starbucks saw increased transactions during its fiscal first quarter ended December 28, the first sign that the effort is succeeding.

However, this isn't the first AI-related experiment by Starbucks, which introduced last year a chatbot named "Green Dot Assist" for baristas based on the Microsoft Azure OpenAI Platform. The coffee giant is now taking AI one step further by using it externally to serve the consumer.