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posted by martyb on Friday January 27 2017, @06:11PM   Printer-friendly
from the coffee++ dept.

Starbucks reported a “banner” quarter for its smartphone feature that lets customers order coffee and food ahead of time and skip the line in stores. In fact, the feature is doing so well that it’s clogging pick-up areas and forcing the company to consider revamping store layouts.

[...] Mobile ordering was a bright spot in the Seattle-based coffee giant’s earnings report. Starbucks posted Q1 2017 earnings of $0.52 per share, which met expectations, and $5.73 billion in quarterly revenue, which was up 7 percent year-over-year but missed estimates and sent shares down nearly 5 percent in after-hours trading on Thursday.

Mobile Order & Pay (MOP), the company’s smartphone app feature that launched in 2015 and lets customers skip the line by ordering in advance, represented 7 percent of the company’s U.S. transactions in the most recent quarter. That’s up 3 percent [from] the prior year and 1 percent from the previous quarter.

[...] There were 1,200 stores in the U.S. that saw more than 20 percent of transaction volume come from MOP during peak hours; that’s up from 600 stores in the prior quarter.

The significant uptick in usage is causing in-store congestion issues for MOP customers trying to pick up their order at hand-off stations. This problem not only affects customers who are picking up items, but also potential customers who may notice the in-store traffic and end up not purchasing anything, Johnson [Starbucks CEO] explained.

Source: GeekWire


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  • (Score: 2) by tibman on Friday January 27 2017, @06:44PM

    by tibman (134) Subscriber Badge on Friday January 27 2017, @06:44PM (#459624)

    The Panera near me has these ipads you can order from. So you can order, swipe your card, grab your coffee cup, fill up, and go enjoy. Most of the time for coffee it's like you said, the local shop is best. Starbucks sucks unless you're after one of those dessert coffees with whip cream and chocolate sprinkles. I see a lot of people get that stuff.

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  • (Score: 2) by EvilSS on Friday January 27 2017, @06:50PM

    by EvilSS (1456) Subscriber Badge on Friday January 27 2017, @06:50PM (#459630)
    People go there for regular coffee? I stop by sometimes for one of those coffee flavored deserts, but never for regular coffee. I'd find a McDonald's or Dunkin' Donuts before considering Starbucks for straight coffee.
    • (Score: 2) by tibman on Friday January 27 2017, @08:37PM

      by tibman (134) Subscriber Badge on Friday January 27 2017, @08:37PM (#459699)

      I agree. Even a decent gas station has better coffee, imo.

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  • (Score: 2) by Grishnakh on Friday January 27 2017, @07:04PM

    by Grishnakh (2831) on Friday January 27 2017, @07:04PM (#459643)

    Panera also has on-line ordering; you can just order and pay straight from your phone and then pick it up.

  • (Score: 0) by Anonymous Coward on Saturday January 28 2017, @02:35AM

    by Anonymous Coward on Saturday January 28 2017, @02:35AM (#459792)

    Mmmm, whipped cream and chocolate spriiinklesss. Awwgagagalala