Store management has instructed employees on how to manually operate these systems when they are down. The company has assured that all employees will be paid fairly for the hours worked by them.
Starbucks has joined the list of companies hit by a cyber attack by third-party service provider Blue Yonder. The Blue Yonder company, based in Arizona, provides cloud services that retailers and Fortune 500 companies use to manage their supply chains.
The Wall Street Journal first reported that Starbucks was affected by the attack. On Monday, Ford Motor Co. also announced it was investigating the potential impact. Ford spokesman Ian Thibodeau said, “We are aware of a cyber incident at a third-party supplier and are investigating whether it affects our systems and operations.”
Blue Yonder has declined to release information about customers affected by the cyber attack. “We are working around the clock to respond to this incident and are in the process of restoring the situation soon,” the company said in a statement.
Blue Yonder has contacted US customers affected by the attack last week to try to mitigate the impact. Ransomware attacks usually involve shutting down computer systems and demanding a ransom from the hackers. In 2023, cybercriminals extorted a record $1.1 billion in ransom from various organizations worldwide. Despite efforts by the US government to curb this flow, the attacks are increasing.
Such attacks are likely throughout the year, but during the holiday season – when companies are busy fulfilling large volumes of orders – these attacks are more effective. According to a survey by cybersecurity company Semperis, 86% of ransomware attacks on organizations in the United States, United Kingdom, France, and Germany were carried out on a holiday or weekend.
The problem for Starbucks is a big challenge for new CEO Brian Nichol. The company has been experiencing a decline in sales for the last three quarters, raising questions about the management’s performance.