These days, there are very few things that aren’t available for speedy pickup or delivery.
The pandemic changed a lot of our habits, and the way we shop saw a tremendous shift as shoppers realized they didn’t need to leave the house or change out of sweatpants to procure the essentials (and more).
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Suddenly, every major retailer from Target (TGT) – Get Free Report to Walmart (WMT) – Get Free Report to most major grocery chains offered either rapid delivery or same-day pickup – and oftentimes both.
Whether we knew it at the time or not, this move changed consumer behavior seemingly forever. As of August 2023, fewer than half (46%) of shoppers say they still prefer to shop in-person.
Of course, there are plenty of apps and services waiting to cater to our changing tastes. The rise of apps like DoorDash have changed the way we eat and are entertained. Movie theater revenues continue to decline year over year, while more and more folks spend on food delivery for Netflix (NFLX) – Get Free Report nights in.
So crafty restaurants and in-person cafes have gotten smart. Starbucks (SBUX) – Get Free Report, for example, has ramped up its mobile order efforts, bolstering its app and pouring resources into its fulfillment process so that more customers get the same quality drinks in less time.
Starbucks has big plans to deliver
But the world’s largest coffee chain also recently announced plans to fulfill orders no matter what time it is – including after hours.
A Starbucks store is seen in New York City on Jan. 30.
Spencer Platt/Getty Images
During Starbucks’ Q1 2024 earnings call, CEO Laxman Narasimhan told analysts the company would parter with delivery service GoPuff to deliver orders placed overnight, between the hours of 5 p.m. and 5 a.m. The program is in its pilot stage at the minute and will be rolled out further if it demonstrates strong demand and success.
“In this pilot, Starbucks-trained baristas prepare handcrafted Starbucks drinks and food inside Gopuff micro fulfillment centers, delivering to the customer’s door in about 30 minutes. To further expand the reach and impact of mobile ordering and rewards, we now offer Starbucks connecting over 40% of our more than 6,700 U.S.-licensed stores, with further expansion planned for this year,” Narasimhan explained.
Starbucks also revealed that it’s seeing strong financial payout from its delivery sales, which increased by 80% over the past year despite it only making up for 2% of sales at the cafe.
It’s not immediately clear who exactly might be ordering a coffee at, say, 3 a.m., but it is clear that Starbucks sees an opportunity in delivery. More and more customers seem to be opting to have their coffee delivered to their doorstep, so a deep and meaningful investment into the process might be the secret to further propelling sales as other cafes, like China-based Luckin Coffee (LKNCY) – Get Free Report and U.S.-based Peet’s gain traction.
In late 2023, Starbucks began plans to roll out its Siren System, which are purpose-built to speed up order and fulfillment time.
It estimates that by 2026, up to 40% of all cafes will have its new working Siren System, which include “a custom ice dispenser, milk-dispensing system and new, faster blenders all located within reach of a barista,” according to Starbucks.
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