“Between MOP, drive-thru and delivery, that accounted for over 70% of our sales in the quarter,” said John Culver, Starbucks group president of North America and chief operating officer, during the call.
He added that the brand would continue to leverage these offerings to “meet the changing customer needs to drive transaction growth going forward.”
While the company said it continues to provide a safe in-store experience amid COVID, taking temperatures and enforcing mask wearing, continued investment into its digital offerings have supplied Starbucks with additional growth opportunities.
According to the earnings call, digital ordering grew to a Q1 record of 38% of sales.
“This is a result of our work over the past year to expand digital customer relationships, introduce new beverage offerings, and provide a safe, familiar, and convenient experience for our customers,” said Kevin Johnson, president and chief executive officer of Starbucks.
Rewards Program Sees Continued Growth
These efforts are clearly paying off in retention as Starbucks customers are largely remaining loyal to the brand. The company saw a 21% YoY increase in Starbucks Rewards 90-day active members in the U.S. — bringing the total up to 26.4 million.
In fact, rewards growth is faster than traffic at the moment, now representing 53% of all spending in Starbucks stores, according to Culver — an all-time high. Rewards members even visit the store three times more often than non-members, the company said.
While the future of COVID remains unclear, the company said it is well positioned to address the industry challenges and operating environment.
As COVID-spikes continue to emerge, prompting expanded isolation benefits for sick staff and increased training expenses as a result, a continued focus on the consumer experience is key. Whether the focus will be on in-store experiences or mobile pick-up remains to be seen.