Fast Five Shorts | Starbucks To Offer In-app Delivery Via Doordash
In the latest edition of Omni Talk’s Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Avalara, Mirakl, Ownit AI, and Ocampo Capital Chris Walton and Anne Mezzenga discuss: Starbucks Offering In-app Delivery Via Doordash
For the full episode head here: https://youtu.be/UxDXVG9DOuQ
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Transcript
Starbucks has expanded DoorDash delivery within the Starbucks app.
Speaker A:According to Chain Storage, Starbucks customers in the US And Canada, except for Quebec, can now use the Starbucks app to order delivery with fulfillment provided by DoorDash.
Speaker A:When customers who live within the radius of participating stores open the Starbucks app, they can now toggle the top of the page between pickup and delivery and on the store selection screen.
Speaker A:DoorDash delivery within the Starbucks app leverages the online ordering solution of the DoorDash commerce platform, a recently released integrated ordering system design to enable partner retailers like Starbucks to personalize the digital experience, capture customer specific insights and drive user engagement.
Speaker A:To celebrate the launch of this new joint mobile delivery offering, customers receive $0 delivery fees on orders placed within the Starbucks app from Wednesday of last week through Sunday.
Speaker A:So, Chris, one, did you try this?
Speaker A:And two, what do you think of ordering Starbucks via DoorDash through the Starbucks app?
Speaker B:And I of course tried it.
Speaker B:I of course tried it, yes.
Speaker B:It's the first thing I did on Saturday morning.
Speaker B:I ordered a ordered Americano, a Grande Americano, and a grande oat milk latte for my mom who was staying with me.
Speaker B:So yeah, I tried it.
Speaker B:I thought it was pretty good.
Speaker B:Overall, the experience worked pretty good.
Speaker B:It was a little clunky.
Speaker B:It's kind of felt like a mashup between DoorDash and Starbucks Experience.
Speaker B:It didn't feel like the true Starbucks active app experience.
Speaker B:That's one thing I would say about it.
Speaker B:Like, for example, like I didn't have my preloaded favorites in there, so I had to reset everything up.
Speaker B:So that was kind of frustrating.
Speaker B:But overall I liked it.
Speaker B:And in general, I absolutely love this concept.
Speaker B:I love it for a couple of reasons.
Speaker B:First, I think it fits right in with everything Brian Nichols is trying to do to reduce wait times because, you know, who's okay with waiting longer and people who are getting their orders delivered.
Speaker B:I probably waited 20 or 30 minutes to get my order.
Speaker B:I didn't actually track it, but it definitely took about that long.
Speaker B:So it built some slack time into Starbucks operations for their stores, which is great.
Speaker B:But the other reason I love it, Ann, is the data and the visibility it gives to Starbucks.
Speaker B:Starbucks can now better see the volume coming in through its app versus say, through DoorDash, and therefore they can divert any order to any store that has more capacity.
Speaker B:Because as a Starbucks customer, I don't care which store my coffee comes from.
Speaker B:I just care that the order's right and it's hot.
Speaker A:Right?
Speaker B:That's all that matters.
Speaker B:And so for this, that's why I love this.
Speaker B:I think for the long term it's going to be a big win for Starbucks.
Speaker B:I think it's smart because it plays right in line with what Nickel's trying to do.
Speaker B:But what do you think?
Speaker A:Yeah, I mean, I think you're 100% right.
Speaker A:There's definitely people who want Starbucks delivery and who are in the Starbucks app and aren't doordash members who now have an opportunity to get their coffee delivered to them in 20 minutes in this case.
Speaker A:So I think for Starbucks it makes a ton of sense that they're going to go forward and start to roll this out.
Speaker A:I think the only question that I have is that you have Brian Nichol who's still trying to figure out automation and how to make the order processing smoother at Starbuck Bucks so that if you're in the store, you're getting your coffee in a timely manner.
Speaker A:If I'm ordering online and picking up in store, I'm getting it within a timely MANNER, not the 20 minutes that you talked about last week.
Speaker A:And so I think that's the only thing here is that I do think there's going to be significant volume, especially at those peak times.
Speaker A:And so it's just a matter of whether or not the Starbucks stores are ready to accommodate this influx in volume from the delivery that I think they're going to start to see increase with rolling this out.
Speaker B:Yeah, but that's, but that's a great thing is that they have the capacity now.
Speaker B:They have extra capacity for whatever store they need to fulfill the order from.
Speaker B:The other point I make too, Ann, just because we didn't cover Walmart's news on earnings broke yesterday where they're getting significant share in a hundred thousand dollar plus income earners.
Speaker B:So there's a lot of people that actually still could find the extra.
Speaker B:Oh, because the other thing I forgot to mention, you saw the tip.
Speaker B:So even though you read it, read that announcement like it sounded like it was a free thing, you saw the tip.
Speaker B:So it is a more expensive way, significantly more expensive way to get your Starbucks.
Speaker B:But there's probably still plenty of people that are going to be interested in trying this out, especially on a busy Saturday or Sunday morning or a lazy Saturday and Sunday morning as well, right?
