A ransomware attack has disrupted the software Starbucks relies on to manage and track baristas’ schedules, forcing the company to manually ensure accurate payroll processing. The issue stems from a cyberattack on Blue Yonder, an Arizona-based cloud service provider, Starbucks confirmed on Monday.

The company has instructed store managers to manually address scheduling and payroll during the outage, reassuring employees they will be compensated for all hours worked. “We are committed to ensuring our partners (employees) are paid accurately and on time,” said Starbucks spokesperson Jaci Anderson.

The Broader Impact of the Blue Yonder Hack

Starbucks is among several companies impacted by the Blue Yonder attack. Blue Yonder’s cloud services are widely used by multinational corporations, including grocery chains and Fortune 500 firms, to manage supply chains and workforce operations. Two of the largest grocery chains in the UK have also reported disruptions and are implementing manual workarounds.

Blue Yonder has yet to disclose which clients are affected, but the company stated it is “working around the clock” to address the breach. It has enlisted the assistance of US cybersecurity firm CrowdStrike to aid in recovery efforts.

The Wall Street Journal first reported Starbucks’ connection to the Blue Yonder incident, and automaker Ford announced on Monday it is investigating potential impacts on its systems due to the same breach.

Ransomware’s Expanding Threat

Ransomware attacks like this one typically encrypt a company’s systems, with hackers demanding payment for decryption keys. In 2023 alone, cybercriminals extorted a record $1.1 billion in ransom payments worldwide, despite intensified efforts by governments to counter such schemes, according to crypto-tracking firm Chainalysis.

The timing of the Blue Yonder hack—during the holiday season—underscores the opportunistic nature of these attacks. Businesses scrambling to meet holiday demands are prime targets. A study by cybersecurity firm Semperis revealed that 86% of surveyed organizations in the US, UK, France, and Germany hit by ransomware were attacked on weekends or holidays.

Challenges for Starbucks Leadership

This disruption comes as Starbucks’ CEO Brian Niccol faces other challenges, including three consecutive quarters of declining sales. Ensuring smooth operations during a critical shopping season adds another layer of complexity to the company’s ongoing efforts to recover momentum.

While Starbucks and other affected companies work through this crisis, the incident highlights the growing vulnerabilities of cloud-reliant systems and the escalating threat posed by ransomware attacks worldwide.

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