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While Starbucks announces the start of the hot season by unveiling its summer menu on Tuesday, investors can expect sales to heat up as customers claim its refreshing beverages.
Even in the winter, cold drinks contributed to Starbucks' sales growth. The company's strategy has therefore been focused on innovation, such as cold foam. Another innovation in chilled beverages, Nitro Cold Brew, is available in approximately half of its stores in the United States, with Starbucks aiming for national availability at the end of the year.
In the second quarter, the company announced that its sales in stores opened for at least 12 months had increased by 3%, exceeding Wall Street's estimates by 2.9%. Starbucks attributed this growth to a 3% increase in the average number of customers. Nearly half of the growth in ticket numbers comes from customers trading more expensive drinks like Cloud Macchiato.
In addition, cold drinks help attract customers to stores throughout the day, well beyond the early morning hours. The afternoon performance during the last quarter was the best of the past three years.
"We found that when we introduce more innovations in cold drinks, we improve the afternoons and our[Starbucks Rewards] Members tend to shop at us in the afternoons, "chief operating officer Roz Brewer said Thursday during the quarterly conference call with badysts.
But, a cold option has had less love. Starbucks is far from time-limited Frappuccinos. The last to have a noticeable impact on sales is the Unicorn Frappuccino, introduced in April 2017. Since then, the Seattle-based company has largely failed to replicate its success with another version of the mix. This year, its summer menu brings back three popular versions of the drink mix without introducing new Frappuccino options.
"We're learning that it's a" and "not a" or ", said Roz Brewer, director of Starbucks operations, in an interview, adding that the Frappuccinos would still be on the menu.
The coffee chain also offers a crispy grilled cheese sandwich, a Baja black bean vegetable roll and a donut and donut iced cake for the summer.
Here is his range of summer drinks:
Dragon drink
Starbucks Dragon Drink
Source: Starbucks
The new summer offering combines Starbucks Dragonfruit Mango Refreshment with coconut milk for a fruity and creamy drink. Like the Unicorn Frappuccino, this option is designed for Instagram. The dragon fruit from Vietnam gives it this bright pink color.
Cold Brew with cold foam salty cream
Cold Brew Starbucks with salty cream mousse.
Source: Starbucks
The latest addition to the Starbucks cold drink line features a hint of caramel topped with its frothy cold foam. The beverage is an all – year addition to the menu because Starbucks attempts to attract customers looking for healthier options with a cold, lightweight, low calorie foam.
S & M Frappuccino
Starbucks S & M Frappuccino
Source: Starbucks
Last summer, Starbucks disappointed customers by not bringing back the Søre Frappuccino. After reading their complaints on social media, the coffee chain reports it this season – and Starbucks does not seem to have to make that mistake again. Brewer said the company thought the blended glbad could be the summer version of the pumpkin spice latte as a popular way to usher in a new season.
Mocha cookies frappuccino
Frappuccino Crumble Cookie Starbucks Mocha
Source: Starbucks
Another favorite of summer is coming back too. The Frappuccino Crumble Cookie Mocha was introduced for the first time in 2012. The mixed drink consists of vanilla syrup, chocolate badped cream and chocolate biscuits.
Crunchy Frappuccino with caramel ribbon
Crunchy Frappuccino with Starbucks Caramel Ribbon
Source: Starbucks
Starbucks rounds out its limited time Frappuccino offering with an integrated version of caramel syrup, black caramel sauce, caramel fillet and crunchy caramel sugar topping.
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