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Mobile payment has negative impact on Starbucks' performance

2017-01-28

  Starbucks Coffee, the first catering chain to promote mobile payment in North America, has been frowning recently. Mobile payment launched in 2014 has accounted for 27% of Starbucks' consumption. The company relies heavily on the mobile payment system. It originally wanted to allow customers to enjoy more convenience, speed up checkouts, and promote sales, but never expected that mobile payment would become the reason for dragging performance.

Mobile payment has negative impact on Starbucks' performance

  "More and more people are using mobile payments, but it has caused congestion on the counter." Many customers have been able to book and pay orders through their mobile phones, and then go directly to the counter to get coffee, which makes many people in line unsatisfied, and some people don't have the patience to continue waiting and stop buying.

  This situation had a negative impact on the company's first-quarter performance, and Kevin Johnson said the company attached importance to this problem and must find a way to solve it. Kevin Johnson, who has worked for Microsoft and Juniper for many years, is about to take over as CEO in April, and this appointment means Starbucks is eager to improve its technology level. Starbucks had previously expected double-digit sales growth to be recorded throughout the year, but recently the company adjusted its forecast, with sales rising by only 8 to 10 percentage points.

  Kevin Johnson's predecessor was Howard Schultz, who worked for Starbucks for many years, successfully built Starbucks into a global coffee empire. Kevin Johnson took over a company that the industry has high hopes for. "Starbucks' pain point sales rose by 3% last quarter, and this result is good for other catering companies, but Starbucks is Starbucks, and people expect it far more than that."

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