updated - September 24, 2020 Thursday EDT
Starbucks will now be offering coffee delivery service right at your doorstep, hassle-free!
Chief Executive Officer Howard Schultz revealed during the company's financial report on Thursday plans to start a food and beverage delivery service late next year.
The Seattle-based company promotes the app in order to increase customer loyalty.
"We are playing offense," Schultz said while noting the different ways Starbucks made and is continually making in order to adapt to changing customer preferences and habits, noting the gravitation towards online shopping and veering away from physical stores.
The deliveries will be available through Starbucks' loyalty program and will be included in the new Starbucks mobile app set to arrive in Portland, Ore. this coming November. Customers can also order and pay through the app as well.
"Imagine the ability to create a standing order of Starbucks delivered hot to your desk daily," Schultz said, calling the initiative their version of "e-commerce on steroids."
Starbucks has been aggressive in expanding as it faces increasing competition from fast-food chains also serving specialty coffees. To bolster sales during the afternoon, Starbucks improved its sandwich selections and added new products like grilled cheese sandwich warmed up in an oven.
Meanwhile, Starbucks reported disappointing Q3 sales prompting it to offer the delivery service as part of bolstering the brand.
Starbucks gained $587.9 million, or 77 cents per share in the most recent quarter, excluding one-time item, it earned 74 cents per share, which was in line with Wall Street expectations, according to FactSet.
Revenue came in at $4.18 billion, down from the $4.24 billion analysts predicted.
For the current quarter ending in December, Starbucks expects its per-share earnings to range from 79 cents to 81 cents. Analysts expected 83 cents per share. The company expects full-year earnings in the range of $3.08 to $3.13 per share.
Shares of Starbucks were down 4 percent at $74.04.
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