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Starbucks' Mobile Order & Pay Enters 1st ex US Market: UK

Starbucks Corporation 's SBUX mobile ordering service - Mobile Order & Pay - has now reached the first market outside the U.S. The service will be rolled out today in 150 stores across London, U.K.

Last week, Starbucks announced that the service is now available across the U.S. - at more than 7,400 company-owned stores.

Through the Mobile Order & Pay initiative customers can order using the Starbucks app before arriving at a Starbucks café and pick up the items at the selected store, thus saving time.

Starbucks launched the service at select stores in Portland, OR in December last year to offer faster service and improve in-store operations. During its fiscal third-quarter earnings conference, the coffee chain stated that the service is attracting customers, thereby improving traffic trends, sales and profits at the 4,000 outlets where it was available then.

The service has been integrated into Starbucks' mobile app and My Starbucks Rewards (MSR) loyalty program. The service is expected to boost MSR membership and app usage eventually while increasing transactions.

In the U.S., the service is available to both iPhone and Android users. However, in the U.K., it will initially be available only on iPhones. The facility is expected to be introduced in Canada soon.

Another key upcoming initiative by Starbucks is a food and beverage delivery service. The company expects to introduce the service in collaboration with on-demand delivery service provider, Postmates, in Seattle and through its own employees in specific office buildings of New York City like Empire State building before this year ends. Customers in Seattle can place orders through Starbucks' mobile app while those in New York can order online.

These digital initiatives are expected to quicken service, increase convenience and enhance customer loyalty thereby driving mobile payment transactions and spurring traffic.

Starbucks' app is undoubtedly one of the most widely used mobile payment apps in the U.S. Nearly 20% of all U.S. transactions take place through mobile, more than double the figure reported just a couple of years ago.

Stocks to Consider

Starbucks carries a Zacks Rank #2 (Buy). Some better-ranked restaurateurs are Bob Evans Farms, Inc. BOBE , Carrols Restaurant Group, Inc. TAST and Dave & Buster's Entertainment, Inc. PLAY . All the three stocks sport a Zacks Rank #1 (Strong Buy).

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STARBUCKS CORP (SBUX): Free Stock Analysis Report

BOB EVANS FARMS (BOBE): Free Stock Analysis Report

CARROLS RESTRNT (TAST): Free Stock Analysis Report

DAVE&BUSTRS ENT (PLAY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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