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Some Starbucks Cafes Overwhelmed By Mobile Order and Pay Volume

By Raymond Pucci
July 16, 2021
in Analysts Coverage, Commerce, Credit, Customer Experience, Debit, E-commerce, Merchant
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Some Starbucks Cafes Overwhelmed By Mobile Order and Pay Volume, Starbucks mobile payments

Some Starbucks Cafes Overwhelmed By Mobile Order and Pay Volume

The Starbucks mobile app has become one of the most successful examples of mobile ordering in the restaurant industry, combining digital payments, loyalty rewards, and personalized offers into a seamless customer experience. As consumers increasingly expect convenience and speed, mobile ordering continues to reshape operations for quick service and fast casual restaurants.

While mobile ordering drives customer engagement and higher transaction volumes, it also introduces operational challenges. Restaurants must balance growing digital demand with in-store capacity, staffing, and order fulfillment to maintain a positive customer experience. Starbucks’ experience illustrates both the opportunities and complexities of scaling mobile order and pay programs.

This is a problem many fast casual and quick service restaurants would love to have. There are reports that Starbucks mobile app orders are generating a high volume of business—sometimes too much—and creating long wait times and frazzled baristas. Starbucks has said that some stores receive more than 25% of orders via the mobile channel at peak hours.

When digital ordering became more prevalent, Starbucks and other restaurants re-aligned store layouts to accommodate pickup of mobile orders. Now maybe another configuration needs to happen. Starbucks mobile app is a category standout and drives customer engagement by integrating payment, loyalty, and personalized marketing offers. Expect to see continued growth of mobile order and pay for coffee shops and quick service restaurants—but latte lovers may sometimes have to wait a little longer before their order is ready for pickup.

The following excerpt from a Business Insider article reports more on the topic:

  • Starbucks workers say the chain is letting too many customers place orders on its app.
  • They say some stores don’t have the capacity to keep up with demand.
  • Starbucks also allows unlimited drink modifications via its app, which staff say they’re sick of.

Customers have turned to the Starbucks app during the pandemic because it allows them to order in advance and without any face-to-face interaction. Some baristas say this has left them swamped with mobile orders, which now make up more than a quarter of its US transactions.

One former New York barista said most of their store’s sales were mobile orders, and that they could get more than seven a minute during busy times. Customers get an estimated collection time when they order on the app. A Starbucks spokesperson told Insider that this helped to stagger arrivals based on how long drinks take to make.

The success of the Starbucks mobile app demonstrates how digital ordering, integrated payments, and loyalty programs can strengthen customer relationships and increase sales. However, as mobile ordering continues to grow, restaurants must invest in operational improvements that keep pace with customer demand.

Businesses that effectively balance convenience with efficient fulfillment will be best positioned to deliver the fast, reliable experiences consumers expect. As mobile commerce evolves, optimizing both the digital and in-store experience will remain a competitive advantage for restaurants of all sizes.

Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group

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Tags: CommerceCustomer ExperienceMobile AppMobile CommerceMobile OrderStarbucks

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