Starbucks Expands Delivery Via DoorDash

Plans are underway to launch nationwide by March.

January 18, 2023

SEATTLE & SAN FRANCISCO—Starbucks is expanding its partnership with DoorDash for delivery in Northern California, Texas, Georgia, Florida and other select markets. The offer will continue to expand to additional markets over the next couple of months, with nationwide availability expected by March 2023.

“As customer behaviors evolve, we continue to innovate the Starbucks Experience to connect with them through meaningful and valuable digital experiences. Our partnership with DoorDash allows us to provide our customers with another convenient way to enjoy Starbucks wherever they are,” said Brooke O’Berry, Starbucks senior vice president of digital experiences.

Starbucks’ expansion with DoorDash follows a successful pilot in Atlanta, Houston and Sacramento, and additional market expansion in Seattle, Portland and New York City last year.

“Delivery continues to represent a significant growth opportunity for Starbucks,” said O’Berry.

The companies tout the convenience of the service, which includes prompt and fresh delivery. Customers can access 95% of Starbucks’ core menu, and customers can customize their orders just as they would at a Starbucks location.

Orders will be delivered by an “extensive network” of DoorDash delivery drivers, designed for “expedient and secure delivery.” Starbucks also has developed packaging solutions to help ensure the quality of hot and cold menu items including stickers for beverages to avoid spilling, tamper evident packaging and delivery-specific cup holders.

If customers have DashPass, DoorDash’s monthly membership program, their Starbucks order delivers for free but does include service fees. Standard delivery and service fees apply to all other orders.

Starbucks is updating its rewards program beginning February 13, making it harder for members to earn their free menu items. Customers will need to earn an additional 50 to 100 points (or stars) to receive bonus food and beverages, with free items ranging from free hot coffee to a bag of coffee beans.

In the three months ended October 2, 2022, the number of active Starbucks rewards members jumped to 28.7 million, up 16% year over year.

“The rewards program … is generating significant revenue for Starbucks,” said interim CEO Howard Schultz during a November analyst call.

The company has been experimenting with its loyalty program in recent months. In October, Starbucks and Delta Airlines connected their loyalty programs, allowing U.S. customers who are enrolled in both Delta SkyMiles and Starbucks Rewards loyalty programs to earn one mile per $1 spent on eligible purchases at Starbucks. In December, Starbucks launched Starbucks Odyssey, which is an extension of the rewards program that allows users to earn NFTs.

NACS Daily recently reported on how the food-delivery market is changing, as the industry evolves from pandemic-induced growth and Americans grapple with economic conditions that put a strain on their wallets. Industry experts say that although consumers are still spending more on delivery apps, they are cautious about how much they spend, changing what and how much they order and are migrating to in-store pickup.

According to the NACS Last Mile Fulfillment in Convenience Retail report, 61% of retailers are satisfied with their third-party delivery partners. Concerns include high fees, little access to consumer data, difficulties delivering age-restricted products and service and operational issues.