Starbucks will introduce for the first time "Mobile Order and Pay" nationwide in 2015. The service, to be tested within the Portland area before the end of the year, enables customers to place orders in advance of their visit for a quick pick up.
"Mobile ordering will deliver convenience, frequency and speed of service and over time, become the fastest and easiest way for customers to order, pay and pick up their purchases," Starbucks said in a statement.
Beyond enabling shoppers to avoid long lines, the service is expected to support Starbucks' mobile payment app, which is strongly entwined with its loyalty rewards program. According to Starbucks, the mobile-payment app now accounts for an estimated 15 percent of total transactions, up from 10 percent in 2013.
The move is also part of several initiatives Starbucks is rolling out to target the digital consumer, particularly the tech savvy Millennial crowd.
"Holiday 2013 witnessed a seismic shift in consumer behavior in which many traditional brick-and-mortar retailers experienced a decline in foot traffic compared to significant growth in online shopping," said Howard Schultz, Starbucks CEO, in a statement. "Customers researched, compared prices, and then bought the brands and items they wanted online, frequently utilizing a mobile device to do so."
Other moves taken by Starbucks as part of its holiday push will include red cups in stores, a line of holiday handcrafted beverages, a holiday-inspired gift card set, and a "Starbucks for Life" sweepstakes. My Starbucks Rewards card members will gain access to special in-store events, sneak previews of new products, and promotions, including packaged coffee in grocery stores.
Chipotle also offers what many are calling "line-busting" mobile ordering, as are Dunkin' Donuts, McDonald's and Taco Bell. With Apple's new mobile payment system set to launch on Monday, any acceptance of mobile pre-pay ordering will help support what's being predicted as a break-out year for mobile pay in 2015.
- Starbucks Unveils Reimagined In-Store and Digital Innovations for Holiday 2014 and Beyond - Starbucks
- Starbucks to roll out 'pay ahead' in 2015 - USA Today
- Starbucks to test smartphone 'pay ahead' option in Portland - The Oregonian
- Skip the coffee shop line: Starbucks to test pre-order mobile feature in Portland this year - GeekWire
- Apple Pay Set to Transform Mobile Payments Starting October 20 - Apple