Starbucks banks on pumpkin spice latte to help reverse sales slump
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Starbucks Corp. is deploying one of the most potent weapons in its arsenal to bring customers back into stores: the pumpkin spice latte.
The fall product lineup is taking on extra weight this year after the coffee chain ousted its chief executive officer in a surprise move last week. Fan-favorite autumn beverages are key to the company’s plan to reverse two quarters of same-store sales declines.
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The pumpkin spice latte returns Aug. 22 for the 21st straight year. Starbucks is also introducing a new iced apple nondairy cream chai, plus two other apple beverages that will only be available on its app. Returning offerings include a pumpkin cream cold brew.
Starbucks is bringing in a restaurant industry heavyweight to take over as CEO next month. Brian Niccol, who most recently led a turnaround at Chipotle Mexican Grill Inc., is on track to become one of the highest paid CEOs in the US. Starbucks investors applauded the choice, sending the shares up 25% on the day of the announcement.
Niccol will have to contend with inflation-weary consumers forgoing $6 iced lattes, escalating wait times and staffing changes that have angered once-loyal customers.
The autumn drinks aim to meet demand for seasonal beverages while also catering to Gen Z and millennials’ preference for tea-based, cold and nondairy beverages, according to Starbucks. The company added that drink customization in the latest quarter was up 28% from a year ago.
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