Retail

Starbucks’ Headquarters Gets Its Own Mobile Order-Ahead Store

Over the years, the Seattle-based coffee giant Starbucks has earned its wings as the go-to spot for morning drinks or afternoon pick-me-ups. It has become synonymous with great coffee, speedy service and a decent Wi-Fi connection.

While the company has continued to innovate by offering new mobile ordering services, it has run into the issue of adding confusion to its already in-store customers. People ordering via mobile on their way to work come in and sometimes grab the wrong coffee. With over 9 million mobile paying customers, the company is looking to enhance the mobile ordering experience while not interrupting the traditional in-store ordering.

To help alleviate this issue, Starbucks is testing out a new mobile-only coffee shop in its headquarters, which is one of the top three mobile-ordering locations in the country.

Starbucks’ chairman, Howard Schultz, commented on how the company plans to upgrade its stores to help with any mobile order and in-store order confusion. He said, "We’re going to redesign new stores and existing remodels to reflect the fact that Mobile Order & Pay, although in its nascent stage, is obviously going to be a significant part of the morning business."

While Starbucks’ stock was down 6 percent last year, investors are hoping that this new approach will help bring the company back into an upward trajectory. In total, the mobile ordering system represents 7 percent of U.S. transactions according to last quarter’s earnings report which is a full three percent raise from the prior year.

With this new venture and the coffee giant’s new CEO, Kevin Johnson, the company is setting its sights on becoming a more technology-infused retailer. As a testament to this, Starbucks has already announced a Ford partnership for ordering drinks from inside the car and an iMessages gifting feature.

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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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