USA – Leading coffeehouse chain Starbucks has been forced to temporarily revert to manual payroll processing after a ransomware attack on a third-party software system that Starbucks uses disrupted operations.

Starbucks employees have been advised by store leadership on how to manage operations manually amid an outage caused by the Blue Yonder cyberattack.

According to Starbucks spokesperson Jaci Anderson, the company will ensure all employees are paid for their hours worked.

Starbucks is among several companies affected by the hack of Arizona-based cloud services provider Blue Yonder, which supports grocery stores and Fortune 500 companies.

Over the weekend, two of the United Kingdom’s top four grocery chains announced they were implementing measures to address the outage.

The Wall Street Journal was the first media outlet to report Starbucks’ involvement in the incident.

Ford Motor Company also acknowledged the potential impact, with spokesperson Ian Thibodeau stating that the company is actively investigating whether the breach at its third-party supplier could affect its operations or systems.

Blue Yonder, used by numerous multinational corporations for supply chain management in the restaurant industry, has not disclosed the specific clients impacted.

In a public statement, the company noted it is “working around the clock to respond to this incident and continues to make progress.” Since the attack, Blue Yonder has been collaborating with U.S.-based clients to minimize disruptions.

The company has enlisted the cybersecurity firm CrowdStrike to aid in recovery efforts, sources familiar with the matter told CNN. CrowdStrike declined to comment, directing inquiries to Blue Yonder.

Ransomware attacks, which typically encrypt victims’ systems to demand payment, remain a significant threat. In 2023, cybercriminals extorted a record US$1.1 billion globally, according to crypto-tracking firm Chainalysis.

The holiday shopping season, marked by urgent order fulfillment, is particularly vulnerable to such incidents. Research by cybersecurity firm Semperis found that 86% of organizations targeted by ransomware in the U.S., U.K., France, and Germany reported attacks on holidays or weekends.

For Starbucks, this disruption adds to the challenges facing new CEO Brian Niccol, who is navigating three consecutive quarters of declining sales.

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