Coffee Delivery Has Become A $1 Billion Business For Starbucks – CoffeeTalk

Starbucks has achieved a significant milestone by surpassing $1 billion in annual delivery sales in fiscal 2025, as reported on May 19, 2024. This remarkable growth was highlighted during the company’s fiscal fourth quarter, which saw nearly a 30% increase in delivery sales compared to the same period last year. This surge in delivery sales aligns with Starbucks’ ongoing efforts to revitalize its U.S. business, which had previously faced a decline in same-store sales over seven consecutive quarters. The company reported flat same-store sales for the fiscal fourth quarter, indicating a reversal in this trend as customers, who had previously opted to brew their coffee at home or switch to competitors, begin returning.

Starbucks initially began testing delivery options about ten years ago but has been cautious in its rollout compared to other restaurant chains. Delivery services became widely available through platforms such as Uber Eats in 2020, followed by DoorDash in 2023, and Grubhub subsequently. Currently, the majority of Starbucks’ company-operated cafes in the U.S. offer delivery services. However, U.S. consumers have been slower to adopt coffee delivery when compared to markets like China, where this service has gained traction. In the U.S., many customers prefer drive-thru lanes and mobile ordering, which provide similar convenience without incurring additional delivery fees.

Interestingly, Starbucks has noted that typical delivery orders are almost twice the value of in-store purchases, with over 40% of these orders including food items. While overall restaurant spending has been hampered by rising consumer costs, food delivery services have not suffered the same downturn. Promotions and discounts from third-party apps have helped retain customers, who are also diversifying their offerings to include new categories such as alcohol and grocery deliveries.

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