Starbucks Just Blamed Their Slower Sales On This

The last thing you would think is that a bunch of people waiting for their drinks at Starbucks would be a problem on sales.

Starbucks tends to think so though.

The congestion at the counter has caused other customers entering the store to leave without making a purchase.

Kevin Johnson, Starbucks’ president and soon-to-be CEO, said during an earnings conference call said that congestion at the hand-off counter has caused incoming customers to leave without making a purchase, despite lines at the register being short.

He contributed this to the company’s lower-than-expected same-store sales growth during the fiscal first quarter. Starbucks had reported that same-store sales only grew 3 percent while Wall Street had anticipated growth of 3.8 percent.

The company did see success with Mobile pay, with mobile order and pay transactions growing throughout its U.S. stores. 1,200 of the coffee chain’s stores saw a 20 percent jump in mobile pay and ordering during peak hours. Last year the increase in mobile pay orders only affected about 600 stores.

It was recently revealed that the company is also testing a dedicated lunch menu in around 100 stores in downtown Chicago.

The chain’s menu is called Mercato and includes ready-to-eat salads, sandwiches, and various side items designed to serve customers looking for everything from high-protein meals to vegetarian and vegan choices.

“The launch of Mercato signifies Starbucks’ next step in building our food business through customer-driven innovation,” said Senior Vice President of Food Sara Trilling.

The new menu includes a chicken and lemon tahini salad; a cauliflower tabbouleh salad; a steak and mango salad; a chicken and fig spread sandwich; a smoked pork sandwich; and an almond butter, strawberries, and jam sandwich.

Disclaimer: We have no position in Starbucks Corporation (NASDAQ: SBUX) and have not been compensated for this article.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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