The company plans to reduce the number of "temporary" drinks, such as the infamous Unicorn Frappuccino.
Starbucks will revisit its current short-term menu innovations and focus on introducing new hot drinks, including a line of cold brews. The company plans to reduce the number of "temporary" drinks, such as the infamous Unicorn Frappuccino. Recently, he received a lot of mixed reviews from regular customers of the network. In addition, analysts note that such drinks on the menu take up much more time for the barista and create additional queues at the coffee shop checkouts.
Investors are reacting positively to the coffee giant's plans to reduce the number of such offers on the menu. Analysts expect US comparable Starbucks store sales to grow by 5% in the fourth quarter, higher than previously forecast. The introduction of drinks based on the popular alternative brewing method cold brew has a positive effect on the company's operations.
"For the foreseeable future, Starbucks plans to avoid 'temporary' beverages that can make it difficult for stores to operate, and instead plans to introduce seasonal offerings based on the latest popular trends," said Cowen analyst Andrew Charles. “Starbucks has the ambition to introduce a new platform to the menu every 2-3 years, just like it did with cold brew, soft drinks, espresso, and the Teavana tea line.”
This fall, Starbucks added a cold-brewed Creamy Pumpkin Latte to the menu, along with a cold version of the classic Spicy Pumpkin Latte. The new drink contains coffee, vanilla, creamy pumpkin foam and spices. It was a big step for the coffee giant, given the growing popularity of cold drinks, which now account for about half of the chain's total revenue. Previously, Cloud Macchiato was introduced, which is also available in two versions - hot and cold.
However, Starbucks representative Reggie Borges does not confirm the company's plans to reduce temporary offerings on the drinks menu. Instead, Starbucks is working to ensure that their sale does not negatively affect the overall performance of coffee shops. Changes to the menu compilation program may be announced soon.
Market participants note that the introduction of new equipment and technologies to help employees can reduce the time for solving administrative tasks and speed up customer service. At the same time, Starbucks is taking a number of measures to reduce costs and improve working conditions, including streamlining sales operations and closing coffee shops with low margins.