Ransomware Attack at Software Supplier Ensnares Starbucks, Grocery Chain

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. 

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 Michael Kan

Senior Reporter

I’ve been working as a journalist for over 15 years—I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017.

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