Starbucks supply chain dysfunction persists as investigation reveals chronic delivery failures despite CEO turnaround efforts

A Reuters investigation has revealed that the Starbucks Corporation SBUXis grappling with a deeply rooted supply chain dysfunction that has persisted despite multiple high-profile turnaround efforts. Data indicates that in early 2024, less than one-third of truck deliveries to distribution centers in the US USwere unloaded on time with full product amounts. This systemic failure, characterized by an on-time delivery rate of less than 30 percent, falls drastically short of the 95 percent industry standard for reliable supply chains. Douglas Kent, executive vice president at the Association for Supply Chain Management, noted that rates below such a threshold indicate severe operational dysfunction and have resulted in chronic product shortages across the store network.

The current chief executive, Brian Niccol brian niccol, who took office in September 2024, has made resolving these shortages a cornerstone of his transformation campaign. However, two former employees report that supply chain issues continued into at least late 2025, suggesting that recent initiatives have produced limited measurable improvements. This operational crisis has coincided with significant financial pressure, as the company faced six consecutive quarters of declining sales before finally reporting flat sales in its October 2025 earnings report. The share price has risen approximately 5 percent since the appointment of Brian Niccol, which slightly outpaces the 1 percent increase in the Reuters U.S. Restaurant Index but significantly underperforms the 26 percent gain seen in the S&P 500 Index GSPC.