June 23, 2024

A logo is displayed at Starbucks’ Coffee Innovation Park in Kunshan, China.

A logo is displayed at Starbucks’ Coffee Innovation Park in Kunshan, China.
Image: VCG (Getty Images)

Starbucks is hoping Grubhub can help make up for its dreadful quarter.

The coffee company said in a statement on Thursday that beginning in June customers in Pennsylvania, Colorado, and Illinois will be able to get their Starbucks orders delivered through Grubhub. There is a delivery fee for customers who are not Grubhub+ members.

Starbucks plans to make the service available nationwide by August 2024, and boasted that the company is the “most searched merchant not yet available” on Grubhub. Additionally, customers will be able to order “most” of Starbucks’ menu. The company did not say which items would be off-limits. Furthermore, to prevent spills, Starbucks said its developed special packaging, including “two-cup to-go trays and improved shopper bags” used by delivery drivers.

“Customer demand to get Starbucks delivered continues to increase, as evidenced by double-digit growth in the U.S. delivery business this past quarter,” said Meg Mathes, vice president of digital experiences at Starbucks.

But, according to the company’s latest earnings report, Starbucks has been struggling to meet demand, both in the U.S. and China. During the second quarter, it reported a sales decline of 3% for its North America and U.S. market, which prompted its shares to plummet to its worst post-earnings level since 2000.

That hasn’t been the only challenge for one of the world’s biggest restaurant chains. It’s also dealing with a bunch of other issues, including boycotts, barista unionizations, and even a direct callout from its former CEO.

Nonetheless, Starbucks hopes its new partnership with Grubhub will help fuel its growth, largely by increasing the availability of its products to Grubhub’s customers. Grubhub has about 33 million customers. Most recently, the delivery company was tapped by Amazon to help the e-commerce giant scale its food delivery business.

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