Starbucks Just Proved Its Coffee Shop Experience Doesn’t Matter
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Augusta, Georgia, Starbucks Coffee, Baristas at work making drinks. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images) Jeffrey Greenberg/Universal Images Group via Getty Images Last week Starbucks announced that its coffee delivery business is now a $1.0 billion business. Yes, that’s right, $1.0 billion. With a “B.” And, even more striking, in its most recent quarter, Starbucks also announced that said delivery business grew by a whopping 30%. Now, some out there might be thinking, “Okay, that’s interesting, but what’s the big deal?” Well, the big deal is that the implications of this statistic go far beyond just selling coffee. The Experience Myth For years, retail pundits have proclaimed that retail is all about the experience. The third place. The community gathering spot. The Instagram-worthy moment. And no company has been put up on the third place pedestal more than Starbucks. Heck, Starbucks is actually a big reason why the term “third place” exists in the first place. Howard Schultz built an empire on the idea that Starbucks was never about just selling coffee. It was selling an experience, that place between home and work where you could feel like you belonged. And you know what? For a long time, that idea worked brilliantly. Then, for whatever reason – mobile ordering, the pandemic, changing demographics, who knows – something changed because now, as evidenced by the $1.0 billion in coffee orders coming via delivery, there obviously is a large swath of Starbucks customers who potentially don’t give a damn about its coffee house experience. To put $1.0 billion into perspective, Starbucks’ total worldwide annual revenue in fiscal 2025 was roughly $37.0 billion, so delivery is likely nothing to sneeze at, particularly in the U.S. Moreover, when Starbucks’ U.S. comp store sales growth was flat last quarter, 30% growth in…
Filed under: News - @ November 9, 2025 6:21 pm