Starbucks unveils plans for delivery service starting 2015

American coffee giant aims to deliver coffee and let customers place orders on their mobile in advance to cut waiting time

Maria Tadeo@mariatad
Friday 31 October 2014 12:49

After reporting disappointing quarterly sales on Thursday, American coffee giant Starbucks has announced plans to introduce a delivery service.

Chief executive Howard Schultz said customers will be able to place orders for coffee and snacks using its mobile app and have them delivered starting next year.

Starbucks did not provide details on pricing and the service will be limited to select stores. However, the move highlights the company's efforts to cater to customers on mobile, shifting from its traditional brick-and-mortar stories.

The Seattle-based coffee chain is giving its mobile app a big push, offering customers perks as part of its Starbucks loyalty scheme, and recently indicated customers will have an option to place orders in advance on their smartphone starting next year to reduce waiting times in store.

The delivery plans for the second half of 2015 were announced during a conference call as Mr Schultz discussed Starbucks' fourth quarter results.

Sales in the Americas region, its main market, for cafes open at least 13 months jumped 5 per cent, but fell short of analyst estimates looking for a 6.2 per cent sales increase.

Net income for the quarter ended September was $587.9 million, or 77 cents per share, compared with a loss of $1.23 billion, or $1.64 per share in the year ago quarter, when it took a big hit after it ended its coffee distribution deal with Kraft.

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