Starbucks customers increasingly order food with their drinks.
Starbucks customers increasingly order food with their drinks.
Starbucks Sees Surge in Food Orders, Breakfast Sandwich Sales Set Record High
Starbucks has reported a significant increase in the number of customers ordering food to accompany their beverages. During the company’s recent earnings call, executives revealed that two in every five customers added food to their orders, representing a 25% increase from five years ago. The sales of breakfast sandwiches, in particular, reached a record high, surpassing the previous quarter’s record.
This surge in food orders is a promising development for Starbucks, as it highlights the potential for growth in their food offerings. “We are excited about the significant opportunity in food as we explore new, elevated, and convenient food offerings,” said CEO Laxman Narasimhan. To further enhance their food service, Starbucks has rolled out new warming ovens to all US company-operated stores, ensuring more efficient food preparation.
Starbucks offers a diverse range of food options, including wraps, sandwiches, protein boxes, pastries, cakes, and breakfast foods. Interestingly, the price of a Starbucks breakfast sandwich is roughly equivalent to a plain grande latte. This affordability, combined with the growing trend of customers adding food to their orders, has contributed to an all-time high in the average check. While it is not specified whether these figures refer to US or global sales, Starbucks reported a 4% increase in average ticket size for total global comparable store sales. In the US alone, this increase was even higher at 6%.
In addition to higher average prices and the popularity of food add-ons, Starbucks executives also noted record average weekly sales and increased items sold per labor hour. These positive indicators demonstrate the overall success and efficiency of Starbucks’ operations during the measured period.
The growing demand for Starbucks’ food offerings is undoubtedly a result of several factors coming together. Firstly, customers are increasingly looking for convenience and efficiency when it comes to their dining options. Starbucks, with its extensive store network, fulfills this need by providing quick and accessible food choices alongside a wide range of beverages. Secondly, the quality and variety of Starbucks’ food items have improved over the years, attracting a larger customer base. Lastly, the overall experience of enjoying a delicious meal alongside a coffee or other beverage creates a welcoming and enjoyable atmosphere for customers.
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Starbucks’ success in the food segment is a testament to its ability to adapt and diversify in response to evolving consumer preferences. By continually exploring new and elevated food offerings, the company is well-positioned to capture a greater share of the food market. As customers continue to embrace the idea of combining food and beverages during their Starbucks visits, the company can expect to see sustained growth in both customer satisfaction and financial performance.
