Starbucks is partnering with Grubhub to help boost growth by further capitalizing on the increasing demand for delivery services.
On Thursday, the companies touted in a joint statement that Starbucks had been the most searched merchant even though it wasn't available on Grubhub’s marketplace. Starting next month, that will change.
Starbucks orders will be available in select markets in Pennsylvania, Colorado and Illinois in June, the companies said.
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Starbucks earnings fell short of shareholder expectations during the last fiscal quarter ending on March 31. However, its delivery business grew by double digits in the U.S. during the three-month period, with the company seeing an increase in both the number and size of orders.
Meg Mathes, vice president of digital experiences at Starbucks, said the partnership is part of an effort to "fuel this growth by increasing availability of Starbucks products to Grubhub’s tens of millions of customers, via a leading delivery provider."
For Grubhub, which was acquired by Dutch-based Just Eat Takeaway in 2021, it's the chance to build up loyalty to its app and grow Grubhub+, Grubhub’s $9.99 monthly membership program.
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The partnership, however, comes shortly after former Starbucks CEO Howard Schultz expressed the need for the coffee giant to undergo a strategic overhaul.
"I have emphasized that the company’s fix needs to begin at home: U.S. operations are the primary reason for the company’s fall from grace," Schultz said in a May LinkedIn post.
To start, "the stores require a maniacal focus on the customer experience, through the eyes of a merchant," he said. "The answer does not lie in data, but in the stores."
He added that the first thing the company needs to do is "reinvent" its mobile ordering and payment platform.
Starbucks previously told FOX Business that it always appreciates the former chief executive's perspective.
Shares of the coffee chain are down over 15% this year compared to a 12% rise in the S&P 500.
