Starbucks is partnering with Gopuff, a grocery and convenience food delivery service, to explore its potential late-night coffee drinker demographic. The pilot program will coordinate delivery orders between 5 p.m. and 5 a.m. through Gopuff’s service. Starbucks CEO Laxman Narasimhan announced that the company saw record results in a U.S. delivery business with growth of nearly 80% year-over-year, aided by its expanded partnership with DoorDash.
The pilot has been running since October but strictly in Philadelphia. Customers in Old City, Northern Liberties, Fairmount, University City, and the majority of Center City have the option to order from the Starbucks menu via Gopuff. The program also allows customers to order seasonal offerings like Pumpkin Spice Latter and Pumpkin Cream Cold Brew.
Delivery accounts for 2% of all the brand’s transactions, making it an avenue ripe for growth. Recent foot traffic data from Placer.ai shows that breakfast may not be the cash cow it once was to the fast food industry. McDonald’s and Chipotle customers are trending toward later-in-the-day visits, with 21.2% of customers coming in from 7 p.m. to 10 p.m. in 2023, a significant increase from 18.8% in 2019.
Restaurants software company Toast has data suggesting that traditional “work lunch” could also be dying. In 19 of the biggest U.S. cities, weekday lunch transactions were down in the first quarter of 2023 compared to 2019. Starbucks has not released any further information on when or where it will be conducting the delivery test with Gopuff.
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