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More Starbucks customers are ordering food with their drinks than ever before

Aug 2, 2023, 16:45 IST
Business Insider
Nicolas Economou/NurPhoto via Getty Images
  • More Starbucks customers are ordering food than ever before, Starbucks execs say.
  • Two in every five customers added food to their order and breakfast sandwich sales hit a record high.
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The number of Starbucks customers ordering food to accompany their drinks is higher than ever before, Starbucks execs said at the company's earnings call on Tuesday.

Two in every five customers added food to their order in the quarter to July 2, up by 25% over five years ago, CFO Rachel Ruggeri told investors. Customers also bought record numbers of breakfast sandwiches, she said, surpassing a record set the prior quarter.

"We are excited about the significant opportunity in food as we explore new, elevated, and convenient food offerings," CEO Laxman Narasimhan said. He noted that the company had rolled out new warming ovens to all US company-operated stores, which he said were more efficient.

The chain sells a range of wraps, sandwiches, protein boxes, pastries, cakes, and breakfast foods. A breakfast sandwich from Starbucks costs roughly the same as a grande latte with no modifications.

A combination of higher prices, guests paying to modifying their drinks, and more people adding food to their orders brought the average check to an all-time high in the quarter, execs said. Starbucks' leadership didn't say whether they referring to US or global sales. Total global comparable store sales had a 4% increase in average ticket size. For US comparable store sales alone, this increase was 6%.

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The coffee chain also reached record average weekly sales and more items being sold per labor hour, the execs added.

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