Starbucks Corporation (NYSE:SBUX) is actively pursuing strategies to maintain the momentum it has gained since its reopening after the COVID-19 pandemic.
What Happened: In a move to drive sales beyond its traditional outlets, Starbucks has partnered with CloudKitchens, a venture led by Uber founder Travis Kalanick, as reported by Business Insider.Â
CloudKitchens provides rental kitchen spaces known as kitchen bays, which are shared and operate under one reception area.
The report highlights that CloudKitchens has numerous locations across the United States, attracting big brands like Buffalo Wild Wings and Chick-fil-A.
According to the report, Starbucks is in the process of establishing a kitchen in one of CloudKitchens’ San Francisco locations called Charter Oak Food Pick-Up.
See Also: How To Buy Starbucks (SBUX) Stock
Why It’s Important: Starbucks has experienced significant growth in its delivery business, with a 20% year-over-year increase, as stated in the report.
During the second-quarter earnings call, CEO Laxman Narasimhan emphasized the continued strong demand for delivery services, even as consumer mobility has recovered.Â
Starbucks already has partnerships with Uber Eats and recently expanded its collaboration with DoorDash, Inc. (NYSE:DASH).
Price Action: Starbucks’ stock closed Tuesday’s session up 2.65% at $71.19, according to Benzinga Pro data.
