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Key Takeaways
- Starbucks is partnering with Grubhub to have its products delivered to U.S. customers’ homes.
- The service starts this month in three states, and is expected to be available nationwide in August.
- The coffee chain giant said demand for home delivery has jumped.
After posting disappointing quarterly results, Starbucks (SBUX) is trying to boost sales by striking a deal to have its frappuccinos and lattes delivered to U.S. customers’ doors by food delivery giant Grubhub.
The world’s biggest coffee chain said Thursday that the service begins this month in select markets in Colorado, Illinois, and Pennsylvania. It expects that it will be available in all 50 states by August.
Starbucks Sees Demand for Home Delivery Increasing
Meg Mathes, vice president of digital experiences at Starbucks, explained that demand for home delivery of its products continues to increase, with the company seeing “double-digit growth in the U.S. delivery business this past quarter.” She added that customers “want convenience in their everyday lives.” The company already has its products delivered to U.S. homes by DoorDash (DASH) and Uber Eats (UBER).
Liz Bosone, VP of enterprise partnerships at Grubhub, noted that the deal will increase options available to its customers, “while strengthening our enterprise offering and growing our merchant supply in markets nationwide.”
Starbucks items going to Grubhub+ members, who pay $9.99 per month, won’t be charged for delivery and will have lower service fees. Grubhub’s standard delivery and service charges will apply to everyone else.
In late April, Starbucks reported fiscal second-quarter earnings and revenue that missed analysts’ estimates, with same-store sales unexpectedly falling 4% as foot traffic in its cafes dropped. That sent shares tumbling. They were up 1.5% to $82.37 as of 1:35 p.m. ET Thursday, but remain down about 14% year-to-date.