Changing consumer preferences make coffee delivery – with food – a billion dollar business for Starbucks
Coffee delivery is a billion business for Starbucks. The news is interesting because, states an online report, restaurant sales and traffic, in general, slowed in 2024, and for some chains, those negative trends continues into 2025. In addition, the word from restaurant consultants is that brands marketing “value” for the customer’s dollar are now seeing improving sales, while Starbucks is viewed as a premium brand.
According to CNBC, Starbucks said its annual delivery sales “crossed the milestone in fiscal 2025, which ended on Sept. 30. In the company’s fiscal fourth quarter, delivery sales climbed almost 30% compared with the year-ago period, executives said.
“The coffee giant began testing delivery roughly a decade ago, but Starbucks has been slower to roll it out than many other restaurant companies. (Nationwide delivery is available through Uber Eats, DoorDash and Grubhub.)
“U.S. consumers have also been slower to embrace coffee delivery than other markets, like China. In Starbucks’ home market, drive-thru lanes and mobile order options offer similar convenience without the delivery fees.
“Perhaps to justify the higher cost, the typical Starbucks delivery order is nearly twice the size of an in-store transaction, according to the company. More than 40% of the chain’s delivery orders include food.”
More here.
