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Ransomware Attack at Software Supplier Ensnares Starbucks, Grocery Chain

Starbucks is tracking employee’s work hours manually after a hack at Blue Yonder.

 & Michael Kan Principal Reporter

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A ransomware attack at a little-known software maker is causing disruptions across the industry, including at Starbucks, which has been forced to use pen and paper to track employee pay. 

Arizona-based Blue Yonder, a supply chain and retail management software provider, began experiencing IT disruptions on Thursday following a ransomware attack. The company has been working “around the clock" to fix the affected systems, but there’s still no timeline on when its services will be fully restored. 

The ensuing outage has ensnared a growing number of Blue Yonder customers, including Starbucks. On Monday, Bloomberg reported that the coffee giant was forced to track employee’s work hours manually instead of relying on Blue Yonder’s software. 

Despite the disruption, a Starbucks spokesperson told PCMag that the coffee chain continues to welcome and serve customers normally. Starbucks is also working to ensure all employees are fully paid for their hours.

In the UK, the ongoing outage also hit grocery chain Morrisons. “We have reverted to a backup process but the outage has caused the smooth flow of goods to our stores to be impacted,” a company spokesperson told CNN. 

The culprits behind the attack remain unclear. But the incident once again highlights how a ransomware attack can reverberate beyond the victim company and cause ripple effects across the industry. In 2021, a ransomware attack on Colonial Pipeline briefly halted all oil pipeline operations for six days as a precaution. This past February, a separate ransomware attack at a US health insurance provider prevented numerous pharmacies and hospitals from filling prescriptions.

In Blue Yonder’s case, the company’s other customers include 7-Eleven, Safeway parent Albertsons, package delivery provider DHL, pharmacy chain Walgreens, and US brewing company Anheuser-Busch. In ransomware attacks, the hackers will also try to steal data from the victim companies, in addition to encrypting their computers. So it’s possible the incident might have resulted in the theft of data from Blue Yonder’s customers.

In the meantime, Blue Yonder has only said: "Our investigation remains ongoing, but please know that our priority is to ensure a safe and secure recovery."

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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