Starbucks Disrupted by Ransomware Attack on Third-Party Software, Forces Manual Payroll Processing

Blue Yonder Hack Forces Coffee Giant to Adapt While Ensuring Baristas Are Paid for Their Work

A ransomware attack has caused a significant disruption for Starbucks, affecting a third-party software system used to manage its baristas’ schedules and payroll. As a result, the coffee chain has had to revert to manual processes to ensure its employees are compensated accurately. This comes after a cyberattack on Blue Yonder, an Arizona-based cloud services provider that serves major corporations, including grocery chains and other Fortune 500 companies.

According to Starbucks spokesperson Jaci Anderson, the company’s store leadership has instructed employees on how to manage the outage manually. Despite the technical setbacks, Starbucks assured workers that they will be paid for all hours worked. The company is committed to overcoming the disruption and ensuring that its employees experience minimal inconvenience during the interim period.

The hack, which was first reported by The Wall Street Journal, has also impacted other major companies. In the United Kingdom, two of the largest grocery chains have had to take similar steps to mitigate the effects of the Blue Yonder breach. Additionally, automaker Ford is investigating potential implications for its operations as a result of the cyberattack on its third-party supplier.

Blue Yonder, a cloud service provider used by a variety of multinational firms to manage their supply chains, has faced increasing pressure since the ransomware attack. In response, the company has enlisted the help of cybersecurity firm CrowdStrike to aid in the recovery process. Although Blue Yonder has refrained from disclosing the full extent of the breach or revealing which clients were affected, it has issued a statement assuring customers that it is working tirelessly to resolve the issue.

Ransomware attacks, which typically involve cybercriminals locking systems and demanding a ransom, have become an alarming trend. In 2023, hackers extorted a record $1.1 billion globally, a significant increase despite government efforts to disrupt criminal activities. Cybersecurity experts note that ransomware attacks often occur during holidays and weekends, capitalizing on times when businesses are under pressure, such as during the busy holiday shopping season.

As Blue Yonder works to recover from the attack, Starbucks remains committed to ensuring that its workers are paid on time. The company’s swift action to transition to manual processes highlights the importance of adaptability in the face of unforeseen cyber threats. For now, Starbucks employees can rest assured that their hours worked will be accounted for despite the technical challenges.