At Starbucks, customers are now able to order and pay for coffee via their phones, so many of them now head directly to the part of the cafe where beverages are handed out. Various snags contributed to company’s lower-than-expected sales and the coffee giant is working to correct problem, according to its Chief Operating Officer.

Questions:

1. Describe the congestion that Chief Operating Officer Kevin Johnson is explaining about Starbucks.
2. How much of Starbucks sales are generated via Phone app?
3. Describe Starbuck’s current financial position (in your own words).

Source:

Patton, L. (2017). Starbucks Mobile Orders Bring Traffic Jams to Pickup Counter. Bloomberg, Jan.27 (Retrievable online at https://www.bloomberg.com/news/articles/2017-01-26/starbucks-mobile-ordering-brings-traffic-jams-to-pickup-counter).