Starbuck’s Delivery a Risk Worth Taking
Tom Dougherty, CEO – Stealing Share
4 November 2014
Starbucks’ new business plan includes home deliveries
Nobody can ever say that Howard Schultz, the CEO of Starbucks, is afraid of trying something new.
With a poor quarterly sales report ripe on his heels, Schultz announced that “we are playing offense.” His recipe for success is to roll out a delivery service that will use crowdsourcing tactics like companies Uber and Deliv do. Starbucks would potentially pull from a large group of part-time workers willing to deliver drinks and food within a specified radius. Deliveries would cost around five dollars and drivers would earn an hourly stipend for driving costs.
With multiple orders happening per delivery, this is a pretty cost-effective option for Starbucks.
To kickstart the new model, users will be able to order drinks using the Starbucks App on their phones, and they can also pick up coffee in a store, without the wait.
The hope here is to have users engaged with the online services provided by Starbucks, which would then, it hopes, pave the way for those same users to place orders for delivery at home.
My only concern is that Starbucks has built its brand around an experience, from placing the order, watching the coffee made and drinking and lounging in its stores. But the brand has been powerful enough to make inroads in the coffee pods market, so it’s possible that this could work.
All in all, this is a bit of a gamble by Schultz, but that’s what I like about him. A great leader is willing to take risks in the face of adversity.
Napoleon once said: “Victory belongs to the most persevering.” If Schultz’s past and present plans are any indication, his strategy for home deliveries will work just fine.
UCLA basketball thieves Tom Dougherty, CEO - Stealing Share 16 November 2017 UCLA basketball brand as it stands now The UCLA basketball brand suffers a major wound. It has been many years since NCAA basketball fans talked about the BRAND of UCLA basketball. The heyday...
Daniel Lanois Tom Dougherty, CEO - Stealing Share 14 November 2017 Daniel Lanois, best record producer you've never heard of When listening to music, you often keep listening to your latest obsession. My latest? Bob Dylan’s genius producer, Daniel Lanois. So much so...
Airline seating Tom Dougherty, CEO - Stealing Share 13 November 2017 Airline seating tightening with no recourse Airline seating is worsening and there’s nothing you can do about it. Yes, the airlines have us in a headlock and we’re all basically powerless to do...