Friday, February 22, 2019

Starbucks execs optimistic on mobile ordering and China


Starbucks is investing heavily in ‘mobile order and pay‘, with plans to roll out the feature across the US by the end of this month, CFO Scott Maw said at the Goldman Sachs retailing conference on Thursday.

Previously, the coffee giant had set itself the end of the year as a deadline to finish implementing the service nationwide, with the Android version poised for release a little earlier.

“We have a winner, and it‘s running ahead of our expectations,” Maw told analysts and investors at an investment conference in New York.

The mobile ordering and pay feature was introduced last year and is gaining traction. In June Starbucks announced it will spend £30m on a technological revamp of its UK business and Starbucks‘ UK MD Mark Fox told Retail Gazette that mobile has played a valuable role in the retailer‘s success. Last year, the Seattle based chain process over $2bn in mobile transactions.

Next year, the app will add suggestions for orders based on consumer data.

Starbucks has recognised the power of e-commerce and is wielding it to allow for its next revolution: delivery.

Supposedly, the hazelnut latte maker hasn‘t been hampered by the economic stagnancy in China, the company “is not seeing any material impact on profitability or revenue,” Maw said. “The number of transactions that we‘re seeing is good,” and this quarter‘s results are “going to stack up really well in China,” he added.