More reports on: Marketing, Starbucks Corporation

Starbucks to offer doorstep delivery in select markets

news
01 November 2014

The afternoon coffee rush could become a thing of the past if Starbucks Corp were to get its way, SF Gate reported.

CoffeeThe world's largest coffee-shop chain says it would offer delivery in select markets in the second half of next year.

According to  chief executive officer Howard Schultz, the plan was ''e-commerce on steroids,'' whereby people created standing orders that arrived at their desks daily.

The move forms part of the company's strategy to keep US sales growth growing at a time when consumers were pulling back on discretionary purchases and mobile-phone applications had trained them to seek more convenience.

While sales at the established stores of Starbucks in the Americas increased 5 per cent in the quarter through 28 September, it came in less than the 6.2 per cent growth analysts expected.

Starbucks' delivery service will be available through its mobile app, which currently lets customers use their phones to pay at Starbucks stores.

The chain's mobile app - which allows customers to pay and earn rewards points just by scanning their phones - had 12 million ''highly active'' users, chief digital officer Adam Brotman said Thursday on a conference call to discuss third-quarter earnings.

On the whole about 16 per cent of all US Starbucks store transactions were from a mobile device, Schultz said.

No company and no retail store, domestically or internationally, even came close, he said.

Meanwhile, UPI reported Schultz as saying the company was playing ''offense'' in a reference to a strategy to adapt to changing customer habits, including an online transition away from stores.

In another development at the company, workers were being told to leave their jewelry at home, because Starbucks planned to introduce several new food items, and the guidelines were based on the FDA food safety requirements.





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