Starbucks fuels growth with menu innovation and loyalty

The news: Starbucks’ global same-store sales rose 7.9% in fiscal Q3, its third consecutive quarter of growth and well above expectations for 5.7%. The coffee chain benefited from both an increase in visits and a rise in average ticket.

US comparable sales also increased 7.9% in the quarter ended June 28, with a 4.2% rise in transactions and 3.6% ticket growth, the latest evidence that Brian Niccol’s “Back to Starbucks” strategy is persuading customers to return and spend more.

Behind the numbers: Starbucks’ traffic trends have been strong for the past year, with store visits up YoY for each of the past 12 months, according to Placer.ai. That is particularly notable given fiercer competition from emerging coffee chains like Dutch Bros and 7 Brew Coffee, which are expanding at a rapid clip—although Starbucks continues to have the edge in unique mobile app users, per Comscore data provided to EMARKETER.

Starbucks’ ability to get customers to its stores relies on tried-but-true tactics.

Menu innovation. The company is adding drinks to its menu at a faster clip. Recent releases include a blended version of its energy Refreshers, an Orange Cream collection, and blue coconut drinks. Starbucks is also leaning into add-ons like popping boba and cold foams that give customers more opportunities to customize their drinks while boosting average tickets.

Limited-edition merchandise drops. Starbucks is one of a growing number of companies relying on a streetwear-style drop strategy to drive store visits. The coffee chain released a pink edition of its Bearista cup earlier this summer, as well as partnerships with Miffy and Southern California fashion brand Dandy. These drops are helping Starbucks attract younger consumers and ensure consistent traffic.

Loyalty. The company overhauled its rewards program earlier this year to offer more perks to its most loyal customers and encourage others to visit more often. The share of customers visiting at least twice per month stayed above 2025 levels from January to June, according to Placer.ai.

Implications for consumer spending: Starbucks’ strong US performance shows that consumers continue to indulge in small treats like S’mores Frappuccinos despite—or perhaps because of—growing financial pressures and depressed consumer sentiment.

You've read 0 of 2 free articles this month.

Get more articles - create your free account today!