The strategy: As Starbucks CEO Brian Niccol works to make stores more welcoming, the chain is eyeing the afternoon daypart as a meaningful growth opportunity. Long reliant on habit-driven morning traffic, Starbucks believes stores can also become destinations for an afternoon “reset.”

That push leans on protein-forward food and beverages, personalized energy drinks, and more targeted merchandising. Afternoons are less ritualized than mornings, as customers being more willing to experiment—whether with an indulgence like a Frappuccino, a functional option like a protein matcha, or hybrid drinks with protein add-ins.

The strategy is already showing early traction, even as it requires sustained investment. Starbucks has completed renovations at roughly 200 locations, primarily in Southern California and New York City, and plans to finish more than 1,000 by the end of September.

Technology is also enabling the shift. As Starbucks rolls out digital menu boards, it is increasingly dayparting its offerings to spotlight energy, refreshment, and protein in the afternoon while preserving the morning experience.

Protein push: Protein has become a key traffic driver, as more than half of younger adults aim to increase their intake, per Bain & Co.

Starbucks rolled out protein-enhanced lattes, cold foams, and enriched drink options last fall, and executives say the platform is attracting new customers and occasions, even as awareness remains relatively low. Strong trial and repeat rates suggest the platform is driving incremental visits.

The protein strategy is extending beyond beverages. Starbucks is expanding its snackable, protein-forward food options, including a partnership with Khloé Kardashian’s Khloud protein popcorn and new truffle, mushroom, and Brie egg bites.

The context: The afternoon push comes as Starbucks’ broader turnaround shows signs of progress. US transaction growth turned positive for the first time in eight quarters, and loyalty engagement hit record levels.

• Revenues reached $9.92 billion, up 5.5%, ahead of expectations.
• Global comparable store sales grew 4%, driven by a 3% increase in comparable transactions and a 1% increase in average ticket.
• North America and US comparable store sales increased 4%, and China comparable store sales increased 7%.
• Adjusted earnings per share (EPS) fell 18.8% to 56 cents, short of the 59 cents expected.

The company shared its first financial guidance since October 2024, projecting fiscal 2026 adjusted EPS between $2.15 and $2.40, the midpoint of which is below Wall Street’s $2.35 estimate. It expects global and US same-store sales growth of at least 3%.

Implications for Starbucks: The stronger-than-expected top-line results suggest consumers are still willing to splurge on beverages—if given a compelling reason. Starbucks’ protein beverage lineup, paired with limited-time offerings and promotions like its holiday menu, Bearista cups, and Red Cup, helped drive traffic and reinforce that demand. The company is now vying to extend that momentum by unlocking new afternoon occasions.

That growth, however, is coming at a cost. Starbucks said higher labor expenses tied to its turnaround efforts and elevated coffee prices weighed on profitability. That near-term squeeze raises the risk of additional cost-cutting, including potential layoffs, if margins don’t improve quickly enough.