Introduction to Autumn at Starbucks
It may not feel like autumn, with beaches still crowded before Labor Day and school not yet started in many parts of the country, and temperatures remaining in the 80s in some areas.
The Return of Pumpkin Spice
But at Starbucks, autumn arrives with the return of the pumpkin spice latte, or PSL, on Tuesday. This autumn staple is likely to cause an increase in Starbucks sales again, as it did last year when its return caused a 24.1% increase over the normal Thursday average.
Impact on Starbucks Sales
The PSL’s return is expected to boost Starbucks’ sales, which have been declining. The company has seen a decrease in transactions and sales in its stores every quarter, with its net income dipping by almost 50% in the last quarter and profits dropping by around 40% from last year. Seasonal items like the PSL make up around 10% of total sales.
Efforts to Revive the Brand
Starbucks’ new CEO, Brian Niccol, who took over last September, has been trying to revive the brand with various changes. These include optimizing employee uniforms, overhauling the menu by cutting 30% of its offerings, and testing a new café design aimed at attracting customers.
The Pumpkin Spice Latte Phenomenon
The PSL has taken on a life of its own since its introduction in 2003, becoming a signal for autumn that is both loved and mocked. It has also spawned an era of pumpkin spice products, ranging from garbage bags to yogurt and even whiskey. The PSL’s return is a significant event for Starbucks, and its impact on sales will be closely watched.
