Ransomware attack on Starbucks’ vendor: What went wrong for the coffee giant

A ransomware attack on Blue Yonder, a key supply chain management software provider, recently disrupted Starbucks' internal operations. The coffee giant confirmed that it has been forced to revert to manual processes for managing employee schedules and payroll.

The cyberattack, which began on November 21, 2024, impacted Blue Yonder's systems, causing a ripple effect for its clients, including Starbucks.

While the attack hampered back-end processes like time tracking and schedule management, Starbucks assured that customer service and store operations remain unaffected.

"We are working to ensure employees are fully paid for their hours worked with limited disruption or discrepancy," a Starbucks spokesperson was quoted as saying in a Reuters report.

Evaa Saiwal, Head of Cyber Insurance at Policybazaar for Business, highlighted the broader implications of such attacks, "Unlike breaches involving stolen data, ransomware locks businesses out of their systems, halting operations and causing significant financial impact."

Saiwal pointed out that the average recovery cost for ransomware attacks in 2023 was $1.82 million, with 84% of organisations reporting business losses.

The need for cyber resilience

Saiwal emphasised the importance of cyber insurance to mitigate such risks, "Comprehensive cyber insurance provides critical coverage, including ransomware payments, third-party liability protection, and business interruption coverage. It ensures businesses recover and come back stronger."