Starbucks still hasn't fixed its biggest problem in a time of 'disruption'


Starbucks is still struggling to bring more customers into US stores, as the coffee giant battles mobile ordering issues.

On Thursday, Starbucks reported that US comparable sales increased 3% in the second quarter. However, transactions, or number of orders placed, fell 2%.

Starbucks said that the drop in orders could be attributed to its rewards program, which was revamped last April.

The old program would have encouraged a customer ordering multiple drinks to place multiple different orders to get the most points. The new program no longer does that, as it ties rewards points to money spent.


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Whether falling or flat, a lack of growth isn't a good sign for Starbucks. In January, Starbucks reported that transactions had dropped 2% in the first order, blaming the issue on mobile ordering struggles.

Starbucks CEO Kevin Johnson said in a call with investors that the new rewards program and the company's digital platform are crucial to Starbucks' success during a "period of disruption" in the retail industry, as brick-and-mortar retails struggle to compete with ecommerce competitors.

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