Starbucks is bringing mobile ordering and pay to Android users sometime in September, and also plans to roll out the feature across the U.S. to stores it operates by the end of this month.
Starbucks is bringing mobile ordering and pay to Android users sometime in September, and also plans to roll out the feature across the U.S. to stores it operates by the end of this month, Chief Financial Officer Scott Maw said Thursday.
The announcement means Starbucks is speeding up implementation of the feature, an investment Maw said is spurred by its success.
Previously, the company had given itself until the end of the year to complete the nationwide rollout, and had expected to release the Android version around the holidays.
“We have a winner, and it’s running ahead of our expectations,” Maw told analysts and investors at an investment conference in New York.
Most Read Business Stories
- Retail survivors: How four family-owned Washington shops have made it in the Amazon era
- The latest pricing glitch spooked Vanguard shareholders | Your Funds
- I shared my phone number. I learned I shouldn’t have.
- A 'pivotal year' for Nordstrom: New NYC flagship store part of a huge bet on the company's future
- Worried about a recession? Protect yourself but don't panic
The mobile ordering and pay feature was pioneered in Portland last December, then released in hundreds of stores across the Pacific Northwest. In June it began to be extended across several more states.
The feature has been available only on Apple devices, however.
It’s part of Starbucks’ effort to harness the power of e-commerce, a phenomenon that has challenged many retailers. It’s also critical in the retailer’s bid to expand its rewards ecosystem, whose members spend more and more frequently at the coffee chain.
Moreover, mobile ordering is paving the way for Starbucks’ next innovation: delivery, which will roll out this year in Seattle and New York.
The mobile-ordering app has recently been tweaked to allow customers to access a customized menu tied to specific stores. That allows people to select items such as coffee made in high-end Clover machines, which are not available everywhere. (Previously, Clover coffee was absent from the mobile-ordering menu.)
Maw downplayed concerns about the economic slowdown in China, which has rattled global financial markets but apparently hasn’t hampered Starbucks’ explosive growth there.
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 said.
In the quarter ended in June, Starbucks’ same-store sales in the China and Asia Pacific region — that is, sales at stores open for at least a year — rose 11 percent, a bigger increase than in any other region in the world.
Those gains were driven by a 10 percent increase in traffic.