Starbucks to Expand Mobile-Ordering Service to 21 States

By Angela Chen 

Tech-friendly coffee chain Starbucks Corp. on Tuesday said it has expanded its mobile ordering service to 21 states in the southern and central U.S.

The mobile-ordering service--which allows customers to place pickup orders from its mobile application--began as a pilot in Portland, Ore., in December 2014 and became available throughout the Pacific Northwest this March.

Starbucks has become increasingly technology-focused, teaming up with Spotify and tapping Microsoft Corp. veteran Kevin Johnson as its chief operating officer .

In April of 2014, Starbucks chief executive Howard Schultz had said that "major tech companies and retailers" had inquired about licensing Starbucks's mobile software.

The expansion comes as digital and mobile services become increasingly important to the food and beverage industry. Digital advances have extended to other eateries, such as pizza chains Domino's Pizza and Pizza Hut, and Panera Bread Co. Panera customers, for example, can remotely order online from their computer or from the Panera app, and employees place their completed orders on special shelves for pickup.

Shares of Starbucks, up about 27% this year through Monday's close, fell less than 1% in premarket trading.

Write to Angela Chen at [e-mail]

Access Investor Kit for Starbucks Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US8552441094

Subscribe to WSJ: http://online.wsj.com?mod=djnwires