Starbucks, product management

Where the Starbucks app’s growth is hiding

What to build, and how to measure it.

Role
Product strategy, research and prototype
Team
Solo
Course
MKT 372T Product Management, McCombs School of Business at UT Austin
Methods
Opportunity solution tree, KANO, RICE, working-backwards memo
Overview

Starbucks can grow by turning its app from a checkout tool into a daily ritual.

  • The situation

    Starbucks takes 48% of U.S. coffee-shop spending, and Rewards members already drive 58% of U.S. store sales.

  • The catch

    Yet 69% of transactions still aren’t mobile orders, and people use the app to pay, not to discover or plan.

  • The fix

    Build habit-forming features first, then manage to one metric: Weekly Active Ritual Orders per User.

Problem

Nearly half of U.S. coffee-shop spending, but only about 3 in 10 orders placed ahead in the app.

  • 31%of transactions are mobile orders
  • 58%of U.S. store sales come from Rewards members
  • 35M+active Rewards members, an all-time high

Key takeawayThe growth isn’t new customers. It’s moving visits Starbucks already has into the app.

Source: Technomic (2025); Starbucks Q4 FY25 investor dashboard

Opportunities

Three ways to make ordering predictive and personal.

The target outcome: grow mobile revenue and habit-driven visits by making the app a predictive, personalized daily ordering platform. I mapped it as an opportunity solution tree, with a test for each branch.

  • A

    Routine automation

    Nothing can be scheduled, and ordering ignores routine and context.

    Test: a “Schedule this weekly?” prompt after checkout

  • B

    Health-aware customization

    Health preferences aren’t saved, and healthy choices get no guidance.

    Test: auto-applied modifiers vs. manual customizing

  • C

    Personalized recs and deals

    Offers ignore behavior, and the full menu overwhelms discovery.

    Test: a personalized offer vs. a generic coupon

Priorities

The features that build habits score highest.

I scored ten features with RICE (Reach × Impact × Confidence ÷ Effort). The top three all make the next order faster than the last; paid line-skipping lands near the bottom.

RICE score by feature
  1. Drink customization profiles33,750
  2. Smart menu filtering and personalization29,250
  3. Scheduling recurring orders20,250
  4. AI personalized suggestions16,875
  5. Wait-time based store routing15,714
  6. Drink comparison tool14,875
  7. Scheduling ahead (one-time)13,281
  8. Multi-user profiles10,286
  9. Line Priority Boost (paid)4,000
  10. Study-optimized store finder3,656

Quick wins: ship now

Smart menu filtering, customization profiles, wait-time store routing

Strategic bets: fund next

Recurring orders, scheduling ahead, AI drink suggestions, multi-user profiles, study-optimized store finder

Fill-ins

Side-by-side drink comparison

Deprioritize

Line Priority Boost (paid)

Solution

An app that turns one order into a weekly ritual.

I prototyped the redesigned app and rebuilt it in code as a working app: pick who’s ordering, reorder your usual in one tap, find your next favorite by mood, weather and events, schedule it as a ritual, and watch your rewards grow.

Try the working prototype
Measuring success

Success is weekly ritual orders, not downloads.

North star metric WARO

Weekly Active Ritual Orders per User: orders placed from a saved, scheduled or AI-suggested routine. It captures both revenue and habit.

  1. Habit formation: recurring and scheduled orders created
  2. Personalization: recommendations that fit the moment
  3. Convenience: one-tap reorder, reliable pickup
  4. Engagement: active use beyond checkout
  5. Retention: users returning week after week
How I worked

From the business model to a working prototype.

  • Mapped the business with a Business Model Canvas, Value Proposition Canvas, Product Vision Board and Opportunity Solution Tree
  • Prioritized ten new features with KANO analysis and RICE scoring, then sequenced them into a phased roadmap
  • Wrote an Amazon-style working-backwards memo and prototyped the redesigned app screens
  • Invented a north star metric, WARO, with the KPI tree behind it
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