Starbucks has figured out how to thrive in a tough economy. Just the syrups and sauces people put to their drinks. Due to these add-ons,
more food sales, somewhat higher prices, and a flood of consumers, the business had record sales in its most recent quarter.
But officials said the modest extras are piling up large for the corporation.
They cited "modifiers" like syrup and sauce pumps for $1 billion in revenue growth, double what they earned in 2019.
Customers are returning to Starbucks. Last quarter, transactions rose 1%, while daily store visitation reached 95% of pre-pandemic levels.
Cold brew and iced coffee now account for 76% of Starbucks beverage sales, driving the growth. Cold drinks are also more customized, with over half getting some.
Starbucks is surprised by the cold drink change. "Cold has certainly surprised us all at Starbucks," caller Howard Shultz stated. He credits
younger customers for increasing that portion of the business. Starbucks' CMO Brady Brewer said, "The younger you go, the colder the beverage."
Younger Starbucks customers also seem fine with paying extra for customization. Starbucks has many modifiers.
Starbucks' website and app let you add 14 syrups, six sauces, eight toppings, three drizzles, and six foams to a simple cold brew.