Markets

Starbucks' Mobile Order & Pay Service Rolled Out Nationally

An image of some people shaking hands
Credit: Shutterstock photo

Starbucks Corporation 's SBUX mobile ordering service - Mobile Order & Pay - is now available nationwide at more than 7,400 company-owned stores.

The Mobile Order & Pay initiative allows customers to order 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 was attracting customers, thereby improving traffic trends, sales and profits at the 4,000 stores where it was available.

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.

Though the facility was initially available only to iPhone users, it has now been introduced on Android devices as well. The facility is expected to be introduced in some international markets like the U.K. and Canada next month.

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 the Empire State building in the second half of 2015. 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.

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

Stocks to Consider

Starbucks carries a Zacks Rank #3 (Hold). 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).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

SBUX TAST PLAY

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More