Mobile and loyalty programme produce goods for Starbucks

The Starbucks Mobile Order and Pay service represented 12% of US company-operated transactions during its 13-week fiscal second quarter ended 1stApril.

The company, which will close more than 8,000 US stores for an afternoon in May to conduct racial bias training following controversy surrounding the arrest of two black men in a Philadelphia store, turned in better than expected sales growth in its second quarter.

Highlights include the Starbucks Rewards loyalty programme adding 1.6 million active members in the US, up 12% over the prior year. Rewards member spend increased to 39% of US company-operated sales. 

“Our Q2 of fiscal 2018 represented another quarter of record financial results, highlighted by accelerating momentum across our Americas business - particularly in the US, continued strong performance in China and our strongest comp growth in Japan in five quarters,” said Kevin Johnson, president and CEO. 

“We have a clear set of actions underway to improve profitability through a combination of comp and beverage growth and savings across COGS, waste and labour as we move through the back half of the year,” added Scott Maw, CFO. “We are continuing to invest in our business - strategically and with a 'long game' mentality - while at the same time taking decisive near-term action to maximise our brand portfolio and ensure that we continue to deliver outsized returns to our shareholders in the quarters and years ahead.”

Last year, Starbucks employees were encouraged to test out a mobile-only payments store at the coffee company's headquarters in Seattle, in a bid to go cashless.

RBTE takes place at London’s Olympia, 2-3 May 2018.

You can register to attend here