Starbucks Launches ChatGPT Beta for Personalized Drink Recommendations

Starbucks has integrated its menu into ChatGPT, aiming to engage customers before they even open the Starbucks app.

The beta version of this integration was announced last week and can be accessed through ChatGPT’s app directory. Users can type prompts with “@Starbucks” describing their mood or desired drink, and the chatbot will suggest drinks accordingly.

Customization options are available, such as location selection, but transactions must still be completed via the Starbucks mobile app or website.

This move reflects a behavioral shift observed by Starbucks for months: customers often start with a feeling rather than a menu. Paul Riedel, senior vice president of digital and loyalty, explained this trend to CNBC.

The application serves to curb impulse purchases at competing brands. The beverage industry requires drink discovery capabilities to attract Gen Z customers who prefer customized drinks that can be ordered in dining establishments.

The Starbucks app operates as an intentional system directing customers back to its platform. The Starbucks Rewards program is the primary driver of customer return business for the company, as any AI solution without the application would compromise their data interactions.

ChatGPT handles discovery while Starbucks maintains its own conversion process through this integration. This approach preserves the sales funnel, according to Starbucks’ CEO Brian Niccol.

Niccol has been implementing turnaround efforts for the brand, including reintroducing café seating, reducing an overly abundant menu, and redesigning loyalty program tiers. With two consecutive years of declining foot traffic, Starbucks saw increased transactions during its fiscal first quarter ended December 28, indicating these changes are working.

However, this isn’t the first AI-related experiment by Starbucks. Last year, they introduced 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 consumers.