Starbucks Corp. continues to make investments in mobile, as the coffee giant is expanding its Mobile Order and Pay program and installs more smartphone wireless charging stations in its stores.
Coffee lovers paid for 21% of Starbucks’ total Q1 U.S. transactions using the Starbucks mobile app, said Starbucks’ president and chief operating officer Kevin Johnson in its fiscal Q1 earnings call ended Jan. 22, according to a Seeking Alpha transcript. In December, the percentage was 22%, Johnson said.
Starbucks’ mobile app is a part of its digital rewards loyalty program, which has amassed 11.1 million U.S. members, up 23% over Q1 last year, Johnson said.
“By anticipating and investing years ahead of the mobile technology curve, Starbucks today is redefining the customer-facing and partner-facing mobile and retail experiences of the future,” said Starbucks’ CEO Howard Schultz. Starbucks’ Q1 total revenue reached $5.4 billion, Schultz said in the earnings call.
The mobile app is also how consumers use Starbucks’ mobile-ordering service, Mobile Order and Pay, which lets customers purchase coffees and pastries on their smartphones before walking in the store, thus bypassing the line. More than 1 million U.S. customers used Mobile Order and Pay in the month of December, Johnson said. Those customers averaged about five mobile orders in the month, and Starbucks processed more than six million Mobile Order and Pay transactions per month, according to the transcript.
“In many of our busiest stores where morning peak demand is high, Mobile Order and Pay exceeds 10% of total transactions,” Johnson said.
Starbucks extended the mobile-ordering service available to Android consumers in Canada and the U.K. in mid-January. This is already available to Android consumers in the U.S. The coffee giant is also going to extend the services of the program to include a delivery option. Starbucks is currently piloting this in Seattle and New York City, according to the transcript.
Starbucks also continued its roll out of Powermat Charging Spots, small devices that charge a consumer’s smartphone without needing a traditional charger or an outlet.
Powermat and Starbucks’s originally signed a deal in November 2014 for the charging spots in San Francisco. The chargers now are in Starbucks locations in San Francisco, Los Angeles, New York, Boston, Chicago and London.
“Use of the Powermat Charging Spots (at Starbucks) is increasing and are most in use in the afternoon,” a Powermat spokesperson says.
Powermat would not disclose the number of Starbucks locations with the devices, nor how many devices are at each location. In total, Powermat has chargers in 1,400 locations in the U.S.
Powermat works with more than 100 businesses and brands, including, AT&T, DuPont, California State University, Florida State University, and General Motors.
Most new smartphones have wireless charging built-in, but Powermat also provides a small device to the companies it work with that consumers can plug into their older smartphones, which allows those phones to charge.
Powermat charging at Starbucks is free for consumers, and the time it takes for a smartphone to charge is equal to typical standard wired charging, a Powermat spokesperson says. Powermat would not disclose if it gives its devices to Starbucks or if Starbucks pays for them.
80% of consumers say they would visit any store at least once more per week if there was a charging spot available, according to a study that Powermat conducted in the fall of 2015 of 750 U.S. consumers. 86% say a wireless charging station would increase the amount of time they spend at that location and 56% say they would spend more money while they were at a store with a wireless charger.