Starbucks Could Enter Mobile Payment Business, Schultz Tells Cramer

Earlier on CNBC, Jim Cramer sat down with Starbucks SBUX Chief Executive Officer Howard Schultz. "Starbucks will be in the coffee, tea, customer experience, and potentially in the mobile payment business," Schultz said. When Cramer asked about Starbucks "digital DNA," Schultz responded that in anticipation of seismic change of consumer behavior, Starbucks attempted to be as relevant with the consumer outside of stores. The company's mobile payment platform has given a higher degree of frequency and higher degree of loyalty, Schultz said. The next question, according to Schultz, is "how can we leverage [mobile payments] beyond the four walls of our stores." The price of coffee has gone up 71 percent year-to-date, which has some investors concerned, but Schultz said Starbucks coffee needs are locked in for the next 18 months. Interestingly, Schultz told Cramer that dairy prices are a bigger issue than coffee costs. The CEO also added that the company may need to raise grocery prices. Shares of Starbucks are up 1.3 percent to $75.57 on the session.