Starbucks' Mobile Order & Pay Now Available in Northwest - Analyst Blog

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Starbucks CorporationSBUX recently announced that it will expand Mobile Order & Pay - its mobile ordering service debuted last year - to the Pacific Northwest next week.

iPhone users can avail the facility through the Starbucks app in approximately 650 stores across Washington, Idaho, Oregon and Alaska, starting Mar 17.

The Mobile Order & Pay initiative allows customers to order before arriving at a Starbucks café and pick up their order at their selected Starbucks store. Starbucks launched the service in 150 stores in Portland, OR in December last year and plans to expand it nationwide by 2015-end.

This initiative is expected to quicken service, increase convenience and improve customer loyalty, thereby driving mobile payment transactions and spurring traffic.

Starbucks holds a leadership position in digital, card, loyalty and mobile capabilities. The accelerating global adoption of smartphones and mobile technologies is gradually transforming and evolving the retail landscape in terms of payment, loyalty and consumer experience.

Retail companies are witnessing a shift in consumer shopping behavior from brick-and-mortar stores to online shopping. As such, CEO Howard Schultz intends to focus more on leveraging the mobile and digital assets and loyalty, and e-Commerce platforms to create more revenue streams.

Starbucks' mobile app is undoubtedly one of the most widely used mobile payment app in the U.S. Nearly 16% of all U.S. transactions take place through mobile, growing 50% annually. Following the success of its mobile payment services, Starbucks is receiving partnership offers from several mobile payment companies.

Starbucks also plans to introduce full-fledged food and beverage delivery in select urban markets in the second half of 2015.

We believe that digital efforts like mobile order/pay, strong food sales, new handcrafted beverages, lunch/evening program, Teavana tea and K-Cup innovations can fuel stronger traffic trends at Starbucks stores in fiscal 2015.

Stocks to Consider

Starbucks carries a Zacks Rank #3 (Hold). Some restaurateurs worth considering include Dave & Buster's Entertainment, Inc. PLAY , Ignite Restaurant Group, Inc. IRG and BJ's Restaurants, Inc. BJRI . All these stocks sport a Zacks Rank #1 (Strong Buy).

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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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