At Starbucks Home Delivery is the Next Big Thing

One thing that the new CEO of Starbucks Kevin Johnson understands is technology and he understands that technology is integrated into our daily lives.  Johnson was well aware that retail foodservice digital ordering now accounts for 1.9 billion US foodservice visits per year according to the NPD Group.  

In fact that 1.9 billion visits was up 18% last year alone so without a doubt mobile apps are increasingly becoming a must-have for all retailers and consumers. So it’s no wonder that Starbucks launched its latest mobile ordering test feature in Hong Kong earlier this month, its executive director believes the next step for city coffee fans is to have their Starbucks order delivered straight to their doorstep.

Yes, you read that right just turn off the wake-up alarm on your phone, tap the Starbucks app and have your favorite morning coffee delivered.  Just think of the smile you will have when the perfect Grande’ Mocha arrives at the door as you pick up your paper. 

Norbert Tan, who is responsible for both Hong Know and Macau, said: “It’s not a question of if we will do it, it’s a question of when. Delivery is a big space that we’re looking into.”  While he declined to give a specific timetable, Tan said that if and when Starbucks does enter the home delivery market, it was imperative to impart the “Starbucks experience.”

Tan continued “There are many things to think about. The drink temperatures have got to be just right – you can’t deliver a frappucino that’s completely melted,” …Home delivery is just one of the ways that the global coffee brand is planning in a reinvention of itself to stay ahead of its competitors in the ever-crowded coffee market.

According to Tan  “Starbucks launched its mobile app in Hong Kong in 2013, which allows customers to link their loyalty cards to reload credit and even make cashless payments with their smartphone. The app currently has over 240,000 active users in Hong Kong, and 60 per cent of all its loyalty program members pay with the app.”

When Starbucks pushed out the “Mobile Order & Pay” feature across its 176 stores in the city and Macau earlier this month “Close to 70 per cent of our customers [place orders] to-go,” Tan said. “Our busiest periods are during the morning rush and lunch break ... what we are offering is an opportunity for customers to not have to wait in line.”

A week into the launch, 2 per cent of all Starbucks orders are now being placed via mobile ordering, with its busiest store clocking in 6 per cent of all transactions via the new feature. “Hongkongers are much more comfortable with mobile, there is a higher acceptance of mobile apps,” said Andrew Hui, head of marketing at Starbucks Hong Kong and Macau.

“That’s why we can reach 2 per cent so quickly. In comparison, the US took a year to reach 3 per cent.” In the US Dinner is the meal most often ordered digitally, and families are the heaviest users of digital ordering, NPD found. 

Half of digital orders come at dinner time, and 35 percent of digital orders include parties with children. People under age 35 and those with higher household incomes are among above-average users of digital ordering.

Bonnie Riggs, NPD restaurant industry analyst and food industry icon stated “Digital ordering is nor really about the app.”  Foodservice Solutions® Grocerant Guru® agrees completely with Riggs and also believes that Starbucks with Kevin Johnson at the helm will drive incremental top line sales and bottom line profits utilizing industry leading technology.  O’s and as for my Grande’ Caramel Frappuccino with Whole, and chocolately chips I’ll have it time to arrive at my door at precisely 5:33 AM please.

Now that Starbucks is going to coffee delivered to my doorstep, I’m sure you will want yours delivered as well. Foodservice Solutions® team is here to help you drive top line sales and bottom line profits. Are you looking a customer ahead?

You can be sure Starbucks is Looking A Customer Ahead.  Visit www.FoodserviceSolutions.us for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.