Starbucks to Offer Delivery in a Few Cities

StarbucksThe Management of American Global Coffee Company and Coffeehouse chain, Starbucks, has decided it will be starting a delivery service in a few selected cities of the United States of America in the near future. This decision was taken after a disappointing third quarter performance in which the company failed to achieve the targets and expectations of investors despite a rise in revenue, which stood at $4.18 billion.

Starbucks at this moment of time has refused to release the full details about this new delivery service but they believe that if everything goes according to plan, the company might start the reversal of its fortunes very soon.

Starbucks CEO Howard Schultz believes that this move is an aggressive one which will allow the company to change and adjust with the changing global trends. As online shopping becomes more and more popular, Starbucks will look to cash in on this popular way of meetings its targets. This is the reason why Starbucks is actively campaigning to persuade customers to download its app, which will increase its customer loyalty as well.

The option to avail this new delivery service will begin from the beginning of next year when the app will be upgraded.

Starbucks is also planning to go ahead with an idea that allows customers to pre-order on their mobile phones so that they have their products ready when they enter the Starbucks outlet. This option will increase the speed at which people enter and leave the shop allowing potential customers to sit in a more comfortable and desirable environment.

People who decide to go to some other Coffee shops such as Dunkin Donuts due to Starbucks being too crowded during the rush hour might well rethink again about getting their products from Starbucks.

Starbucks is currently only starting its delivery service in the U.S because its sales in this particular region have gone down whereas in Americas and Asia, its revenue rose by about 5%. Starbucks needs to get its acts back on the track as it faces increasing competition from fast food chains that have started to offer the facility of Coffee to their customers. Starbucks will have to change its outlook and its services to compete with them. They have started off well by revamping their sandwiches and increasing its variety to boost sales in the afternoon.

In light of the Holiday Christmas season that is about to begin, it has introduced a seasonal Christmas drink, Chestnut Praline Latte, their first new holiday drink in five years. It is a strategy to take over the market with its favorites in the holiday season, a time where the consumer spending is at its peak and sales sky-rocket. In summers, Starbucks also released its Fizzio Soda Drinks which have quite not hit the mark and have performed below what was expected of them.

Company is trying new things and entering new areas; however it cannot be denied that these risks have to be taken in order to survive in a highly competitive market.