The Associated Press reports that Starbucks is blaming the "disappointing results" for the quarter ending January 1 on too many people in its stores.
The company said that "congestion" in its stores prompted "some people to leave without buying anything," the AP writes. "Starbucks said the popularity of its mobile order-and-pay option, which was supposed to make getting a drink easier, has caused bottlenecks at the areas where people pick up their drinks."
The coffee company said that while "US sales rose 3 percent at established stores ... the increase was the result of higher spending per visit, with more people tacking on items like breakfast sandwiches and other food." Traffic, in fact was flat.
The company said that "congestion" in its stores prompted "some people to leave without buying anything," the AP writes. "Starbucks said the popularity of its mobile order-and-pay option, which was supposed to make getting a drink easier, has caused bottlenecks at the areas where people pick up their drinks."
The coffee company said that while "US sales rose 3 percent at established stores ... the increase was the result of higher spending per visit, with more people tacking on items like breakfast sandwiches and other food." Traffic, in fact was flat.
- KC's View:
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I'm tempted to just say that this is a nice problem to have, and leave it at that. But in fact, if Starbucks is unable to live up to its basic value proposition - and the use of mobile ordering and payment to make the purchase experience easier, not harder, has been made a core company value - then it is going to have problems down the road.
It isn't like the company is going to fall part anytime soon. But this kind of stuff, if not arrested, can lead to the erosion of the foundation of the business.
