Starbucks offers nationwide delivery for new summer menu, including the s'mores Frappuccino
The coffee chain is filling in the gaps with whatever it thinks its customers need.
As Starbucks announces a new focus on developing its digitally powered options, it's also offering delivery in all 48 states where both Starbucks and Uber Eats operate. Although the entire Starbucks menu is not available for delivery, this is another way Starbucks is connecting with its customers.
Delivering your fix
Starbucks is aiming high, trying to be everything to everyone. As customers' needs change, Starbucks is adapting, offering new ways for customers to get their orders through pickup, drive-thru or delivery. Customers who don't want to leave their homes can can order from the Uber Eats app, which is a welcome option for many as they stay at home to avoid exposure to COVID-19. Loyalty program members who order for delivery, however, won't get Starbucks rewards. There's no delivery fee, although some menu items might be higher-priced than in stores.
New summer menu options
Starbucks has introduced a new menu with summer-inspired items, such as the iced guava passionfruit drink, the unicorn cake pop, and the grilled chicken and hummus protein box. It's also featuring the s'mores Frappuccino blended beverage as a return favorite.
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Another new product is the Cold Brew Concentrate, which nitro fans can purchase to brew their favored drink at home. It is available bottled online and in supermarkets. Customers can also get bottled Frappuccino chilled coffee drinks in coffee, mocha, vanilla, and caramel flavors in local supermarket refrigerators, in addition to Starbucks' regular retail line of products.
Fast-tracking digital expansion
The company announced that over the next 18 months it will strengthen digital options in several key areas that it terms "convenience-led formats." Even before the pandemic, to-go options accounted for 80% of orders, and current consumer retail trends are reenforcing these habits.
Starbucks has 19.4 million rewards members, and furthering the digital transformation is meant to fully engage these members.
Pickup stores
Starbucks piloted an order-ahead, pickup-only store at Penn Plaza in New York City and will roll out several more of these stores in dense, urban areas such as Chicago, Seattle and San Francisco. These are geared toward customers on the go, and the Penn Plaza store, as well as a second store at Grand Central Terminal, has received positive feedback.
Curbside pickup
Customers can order and pay ahead at many stores and get their orders from designated parking spots. As another quick option where customers can engage with digital, it also serves to enhance safety during the COVID-19 pandemic. Starbucks will increase the number of stores that offer this service and also pilot a curbside-only store.
Drive-thru
Starbucks is increasing the amount of drive-thru locations outside of urban areas and experimenting with the concept, such as offering a two-lane drive-thru and mixing drive-thru and curbside-pickup-only stores.
All of these options are meant to offer users the best customer experience as they lean into digital, allowing Starbucks to enhance its customer-centric approach even with limited dine-in capabilities.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Starbucks. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.
The Motley Fool is a Paste BN content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of Paste BN.
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