Starbucks plans mobile ordering, free lifetime contest

Building off of the success of Starbucks' mobile payment program, the coffee chain announced it plans to launch a nationwide mobile order and pay program by next year.

Before the rollout, its Portland stores will begin using it by the end of the year. As part of the program, customers can place orders before they arrive at a location and then pick them up in stores.

A Starbucks location in New York.
Scott Mlyn | CNBC
A Starbucks location in New York.

The company's rewards program members will also get the chance to win "Starbucks for Life," a first for the coffee retailer.

Read MoreMcDonald's skips national McRib rollout

The changes follow what CEO and President Howard Schultz described in a release as a "seismic shift in consumer behavior in which many traditional brick-and-mortar retailers experienced a decline in foot traffic compared with significant growth in online shopping" last holiday season.

Read MoreStarbucks tests latte that tastes like stout

"Since that time, we have been focused on radically redefining the Starbucks retail experience for our partners, customers and stores," wrote Schultz.

The holiday season will also bring the Chestnut Praline Latte, its first new handcrafted holiday drink in five years.