CHART: Mobile Order & Pay is already a meaningful channel for Starbucks

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CHART: Mobile Order & Pay is already a meaningful channel for Starbucks

Evan Bakker | April 29, 2016

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BII Purchasing Channels as a share of total store transactions

Mobile Order & Pay, Starbucks' order-ahead platform, already comprises a material share of Starbucks' overall US transactions, just three-quarters into its national launch. 

  • Mobile payments accounted for 24% of Starbucks' total US transactions in Q1 2016: Mobile has steadily climbed as a share of Starbucks' overall transactions, rising from 15% of weekly store transactions in Q2 2014 to 20% in Q2 2015. 
  • Mobile Order & Pay represents 4% of total US transactions. This is significant considering the platform was officially launched in September 2015. And this means that mobile order-ahead accounts for roughly 17% of Starbucks' mobile transactions. 
  • Mobile Order & Pay adoption is highest at the company's busiest stores. The platform represented 10% of overall transactions at the 300 busiest Starbucks stores, and that share rose all the way to 20% during peak hours. This is driving incremental sales at these stores in part due to higher throughput and shorter lines, according to Chief Digital Officer Adam Brotman

Mobile Order & Pay will continue to increase its influence. We previously forecast that the platform will account for 6% of Starbucks' US store transactions in 2016, which seems likely given that it currently represents 4%. But by 2020, the platform will make up 22% of the firm's total US transactions, according to our forecast. This is similar to the share mobile payments holds now — we expect much of in-store mobile payments activity to be displaced by Mobile Order & Pay, meaning that many current in-store mobile payments users will transition to using Mobile Order & Pay as a preferred payment method. 

BII Starbucks Mobile Order And Pay Forecast

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