Starbucks’ hottest cold drink contains little coffee.
Starbucks' hottest cold drink contains little coffee.
Starbucks Refreshers: The Hottest Cold Beverages in Town
If you’ve been to a Starbucks lately, you may have noticed a trend: the rise of cold beverages, particularly Starbucks Refreshers. These fruity, coffee-infused drinks have been driving sales at the iconic coffee chain, accounting for a staggering 75% of beverage sales in the company’s third quarter. The popularity of Starbucks Refreshers has seen double-digit growth, defying expectations and proving to be a hit among customers throughout the day.
Starbucks Refreshers, first introduced in the US in 2012, have become a favorite choice for many coffee enthusiasts looking for a refreshing alternative. These drinks are infused with green coffee extract and are especially popular in the afternoon. However, their widespread appeal now extends beyond the usual time slot, driving sales across all parts of the day. CEO Laxman Narasimhan revealed this exciting development during the chain’s third-quarter earnings call.
Recognizing the immense potential of Starbucks Refreshers, the company is fully embracing these drinks and expanding their offerings. One recent addition is the introduction of Starbucks Refreshers frozen beverages, which debuted this summer. Flavors include Pineapple Passionfruit Lemonade, Strawberry Acai Lemonade, and Mango Dragonfruit Lemonade. The launch of these frozen Refreshers demonstrates Starbucks’ desire to cater to customers’ preferences and seize opportunities in the afternoon day part.
To further enhance the allure of Starbucks Refreshers, the company has also capitalized on the growing demand for cold foam, which has emerged as the fastest-growing add-on at Starbucks. Cold foam can be added to Refreshers, enhancing the overall experience for customers. In response to the increasing popularity of cold foam, Starbucks has developed “faster and easier to use” cold foam blenders specifically designed to meet the demands of the summer season. Narasimhan highlighted the significance of cold foam, emphasizing its pivotal role in Starbucks’ growth and customization offerings.
When it comes to customization, Starbucks is well-known for its extensive array of add-ons and modifiers. These additional options, such as sugary syrups, extra espresso shots, and sauces, have become a billion-dollar business for the coffee chain. In fact, over 60% of beverages at Starbucks are now customized, representing a 9% growth compared to just five years ago. However, it’s worth noting that certain customizations involving Refreshers may come with an upcharge. In May, Starbucks announced a $1 charge for customers who request “no water” in their Refreshers.
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While Starbucks Refreshers have undoubtedly been the star of the show, customers have also shown an affinity for the company’s espresso-infused cold drinks. In the third quarter, 75% of beverage sales were accounted for by cold drinks, with cold espresso beverages experiencing an impressive 13% year-over-year growth. Narasimhan expressed his enthusiasm for the performance of these cold espresso beverages, reaffirming his belief in their potential.
Overall, the success of Starbucks Refreshers reflects the company’s ability to adapt to changing consumer preferences and capitalize on emerging trends. By catering to the growing demand for cold beverages and constantly innovating with new offerings, Starbucks has managed to drive sales and remain a dominant force in the coffee industry.
So, the next time you visit a Starbucks, don’t be surprised if the enticing colors and flavors of their Refreshers tempt you to try something new. Whether it’s the classic Starbucks Refreshers or the refreshing twist of frozen beverages, these fruity, coffee-infused drinks are here to stay, providing a refreshing alternative that continues to win over hearts and taste buds alike.