Starbucks Hit by Ransomware Attack Via Third-Party Software Supplier
November 27, 2024
A ransomware attack on Blue Yonder, a critical supply chain management software provider, has forced Starbucks to revert to manual processes for managing employee schedules and payroll systems.
The incident, which began on November 21, 2024, has not affected customer service or store operations.
Store managers are now using pen and paper to track employee hours, as the attack disrupted the company’s back-end scheduling and time management processes.
The attack has created ripple effects across multiple industries:
UK Retail Impact: Major British supermarket chains Morrisons and Sainsbury’s reported disruptions to their warehouse management systems, though they have implemented backup systems.
Corporate Response: Blue Yonder has enlisted external cybersecurity firms to assist with recovery efforts and implemented defensive protocols. The company has not provided a specific timeline for service restoration.
The incident highlights the vulnerability of supply chain systems during the holiday season. Blue Yonder serves an extensive client base, including:
- 46 of the top 100 manufacturers
- 64 of the top 100 consumer product goods makers
- 76 of the top 100 retailers globally
This attack adds to a growing list of cybersecurity incidents affecting major food service companies. Earlier in 2024, both McDonald’s and Panera experienced technical outages, with Panera’s incident resulting in a class action lawsuit after employee data was compromised.
“We are working around the clock to respond to this incident and continues to make progress. There are no additional updates to share at this time with regard to our restoration timeline following our post yesterday,” reads the Blue Yonder report.
The timing of the attack is particularly significant, as research shows that 86% of ransomware attacks target organizations during holidays or weekends. In 2023, cybercriminals extracted $1.1 billion in ransom payments globally despite governmental efforts to curb such activities.
This disruption presents an additional challenge for Starbucks’ new CEO, Brian Niccol, who is already dealing with three consecutive quarters of declining sales.
While the company works to resolve the situation, it prioritizes maintaining normal customer service operations and ensuring proper employee compensation.