Starbucks (NASDAQ:SBUX) is planning to roll out a food and drink delivery service to select markets in the second half of 2015. The largest coffee chain in the world will also integrate ordering into its mobile app.
"Imagine the ability to create a standing order that Starbucks delivered hot or iced to your desk daily," CEO Harold Schultz said on a call with analysts. The service will be available to loyalty program members as part of its new mobile order and pay app that will launch in Portland, Oregon, next month and nationally next year, reported NBC News.
Starbucks said it would test a mobile ordering app back in July, and simultaneously reported that the company's app accounts for about 14 percent of all U.S. transactions.
The company reported a 1 percent increase in traffic and a 5 percent gain in sales for the Americas region—falling short of the 6.2 percent same-store sales expected, reported the Chicago Tribune.
Schultz said the drop in foot traffic from previous quarters is directly linked to the rise in online and mobile shopping, resulting in fewer trips to retail areas during the weeks leading up to the holiday season. However, that will not slow the company down from innovating on the digital platform.
"We continue to see consumers favor retailers who improve their customer experience through the integration of convenient mobile technology," said Schultz. "And while Starbucks is today an uncontested leader in mobile, we will continue to innovate and lead around all things mobile in order to attract additional users of our app and provide an enhanced and simplified experience for our customers. Innovations that will drive traffic incrementally and create further attachment and customer engagement."
In honor of the holidays, Starbucks is giving away 13 "Starbucks for Life" passes to users of loyalty cards or mobile pay users in North America. Winners will get one free food or drink selection per day for 30 years.
The company forecasted a revenue growth of 16 to 18 percent for 2015, with help from the planned acquisition of Starbucks Japan.
-See this Chicago Tribune article
-See this NBC News article
-See this Seeking Alpha transcript
Starbucks expanding La Boulange Bakery
Starbucks' first Teavana store pricey
Starbucks' sales hit record-high but growth slows
Starbucks to roll out Its $450 metal gift cards
Starbucks reports higher Q4 profit while 2014 forecast falls short