The Golden Age of Coffee Shop Delivery... Industry Leader Starbucks Joins Delivery Trend

New Opening of Yeoksam Emart Branch on 27th and Pilot Operation at 2 Locations Within the Year
Decision on Full-Scale Delivery Service Business Based on Feedback

[Asia Economy Reporter Choi Sunhye] As the trend of non-face-to-face consumption spreads, delivery services are being actively introduced not only in restaurants but also in coffee shops. This month, even Starbucks, the number one coffee franchise that had insisted on in-store and drive-thru services, announced its entry into delivery services. This appears to be a choice made due to the prolonged impact on store operations caused by the spread of COVID-19 and the increasing number of consumers wanting delivery.

According to the food service industry on the 22nd, Starbucks Coffee Korea announced that it will open the Starbucks Yeoksam E-Mart store (310 Yeoksam-ro, Gangnam-gu, E-Mart Yeoksam branch) as a delivery test store on the 27th and will actively review the implementation of delivery services in the future.

The Starbucks Yeoksam E-Mart store will operate as a delivery-only pilot store, unlike existing Starbucks stores where customers could stay and pick up their orders directly. The approximately 30-pyeong (about 99 square meters) store consists solely of a rider-only entrance, rider waiting area, and storage spaces for beverage preparation, food, and MD (merchandise), without any customer seating area.

Baristas at this store will focus solely on preparing and packaging ordered products without direct interaction with visiting customers, dedicating themselves to quality control and prompt delivery service.

Orders can only be placed through the Starbucks mobile app, and delivery is available within approximately a 1.5 km radius from the store location. Customers can check delivery availability by entering the delivery address, and if located within the delivery area, they can proceed with ordering and payment. The minimum order amount is 15,000 KRW (delivery fee of 3,000 KRW is separate), and the existing benefits of earning stars through Starbucks Card payments remain unchanged.

Delivery will be carried out through the delivery startup ‘Barogo’. When a customer’s delivery order is received, the barista in the store prepares the ordered beverages based on the rider’s estimated arrival time to maintain quality. The products go through sealing and packaging processes to prevent damage during transit. When the rider picks up and departs, a delivery start notification is sent to the ordering customer.

Starbucks has conducted various tests to maintain quality during the delivery process. Based on these, about 60 beverage items, 40 food items, and 50 MD items that can maintain quality during delivery have been selected and are operated. Additionally, set menus composed based on big data surveys and customer preferences, as well as delivery-optimized exclusive beverages and food, have been developed and introduced.

In mid-next month, the ‘Starlit Daechi store’ located at 2947 Nambusunhwan-ro, Gangnam-gu, will be additionally opened as a delivery test store in the same format. Starbucks plans to listen to various forms of customer feedback at these two test stores in the future.

Senior Researcher Kim Youngmi of Euromonitor said, "The domestic online dining industry market size ranks third in the world, reflecting a well-developed delivery culture. Among coffee shops, Ediya Coffee proactively introduced delivery services since 2018 and recently met the increased delivery demand caused by social distancing due to COVID-19."

Senior Researcher Kim explained that from a corporate perspective, partnering with delivery specialists to provide delivery services involves less risk than operating fixed-cost drive-thru stores, which is why many coffee franchises have entered the delivery market early.

He added, "Starbucks maintains its undisputed position as the number one coffee shop in Korea, but various local brands such as Ediya, Twosome Place, and Mega Coffee are pursuing aggressive strategies to catch up. Since Starbucks has adopted a more popular image than the premium strategy it had at the early stage of entering the Korean market, this introduction of delivery services seems to be a choice to maintain competitiveness in the mid to long term." He also said, "It is expected that Starbucks will approach domestic consumers, who have become accustomed to delivery culture, in a more friendly manner and solidify its position as the industry leader."

This content was produced with the assistance of AI translation services.