Latest news with #coldfoam
Yahoo
31-07-2025
- Business
- Yahoo
Starbucks looks to protein drinks and other new products to turn around lagging US sales
Starbucks said Tuesday it's confident that improved store operations and new products — including a cold foam protein drink — will soon help turn around the company's lagging U.S. sales. In the meantime, slow U.S. demand continues to be a drag on the company's results. Starbucks reported that its revenue rose 4% to $9.5 billion in its fiscal third quarter. That was better than the $9.3 billion Wall Street expected, according to analysts polled by FactSet. But same-store sales, or sales at locations open at least a year, fell 2% in the April-June period. That was a bigger decline than Wall Street expected, and it was the sixth straight quarter that the Seattle-based company reported lower same-store sales. Same-store sales were up in China, Starbucks' second-largest market. Starbucks has been looking for a partner that can help it expand in China, particularly in smaller cities. Chairman and CEO Brian Niccol said Starbucks was evaluating around 20 offers. 'We remain committed to our China business and want to retain a meaningful stake,' Niccol told investors during a conference call on Tuesday. 'The intense interest in partnering with us is a testament to the great team, strong brand and long-term opportunity for Starbucks in China. It really is a vote of confidence.' But even as its sales picked up in China, Starbucks' same-store sales in the U.S. fell 2% in in the April-June period. U.S. customers spent more per order, but transactions fell 4%, the company reported. Niccol expressed optimism about a new program setting hospitality standards and staffing levels to better handle peak hours. The 'Green Apron Service' model showed so much promise in an eight-week test at 1,500 stores that Starbucks plans to roll it out across the U.S. starting in mid-August, the company said. New software is also helping stores sequence orders, cutting down on wait times. Niccol said 80% of in-store orders are now made in four minutes or less, a target he set last fall. 'I think we'll become famous for Green Apron Service and be the defining customer service company that I think Starbucks should be,' Niccol said. Niccol said improving store operations and paring back Starbucks' menu was necessary before layering in new products. In addition to protein drinks, Starbucks plans to introduce new baked goods and a new dark roast coffee next year. It will also test beverages made with coconut water, customizable energy drinks, and gluten-free and high-protein foods. Niccol said Starbucks has been working closely with employees to develop new food and drink items that can be prepared quickly and consistently. In the past, he said, the company would often develop new menu items at its headquarters and then hope baristas figured out how to make them. 'Those days are over,' Niccol said. Niccol said Starbucks is also trying to encourage customers to linger in its stores. It's closing or modifying some of its approximately 90 mobile order-only storefronts and it is developing a store prototype with 32 seats and a drive-thru window that costs 30% less than the company's current store design. Starbucks is spending heavily to turn itself around. One big expense in the third quarter was a two-day meeting in Las Vegas where the company hosted 14,000 store managers and regional leaders. The company said its net income fell 47% to $558 million in the April-June period. Adjusted for one-time items, its earnings fell 46% to 50 cents per share for the quarter. That was lower than the 65 cents analysts had forecast. Starbucks shares rose 3% in after-hours trading. Sign in to access your portfolio
Yahoo
31-07-2025
- Business
- Yahoo
The high-protein trend is coming for your Starbucks order
Starbucks' new protein cold foam will be released by the end of 2025, CEO Brian Niccol said Tuesday. The optional topping will bring 15g of protein with no added sugar to "virtually any cold beverage." The new offering taps into the protein coffee trend sweeping TikTok, a marketing strategist told BI. Starbucks may unleash the next wave of protein coffee, or "proffee," posts on TikTok if its new menu item brews up the excitement execs hope it will. The coffee giant plans to release its new protein cold foam by the end of this year, capitalizing on the growing trend of making even your coffee a health drink, popularized by gym bros and Gen Z. "In late Q4, we'll introduce protein cold foam," CEO Brian Niccol told investors during the company's Q3 earnings call on Tuesday. "It taps into what has become one of our most popular modifiers — cold foam, which grew 23% year-over-year. Protein cold foam with no added sugar is an easy way to add 15 grams of protein to virtually any cold beverage. And customers can also add the flavor of their choice." Since debuting cold foam as a topping in 2014, Starbucks has expanded its flavor options to include offerings like vanilla, brown sugar, pumpkin spice, and raspberry cream. Starbucks is in the middle of a revitalization campaign, intending to reverse slumping sales and renew diminished consumer interest. In addition to remodeling stores with ceramic dishes and comfy chairs to encourage visitors to stay longer and bringing back the self-serve condiment bar, Niccol has also aimed to streamline the store's menus, announcing plans to cut 30% of its offerings and changing the pricing structure for add-ons like syrups. In the hourlong call, during which Starbucks announced that it had beat analyst expectations on revenue but missed on earnings, Niccol appeared animated by new protein-focused menu items, mentioning "protein" at least eight times. "As we move further into 2026, expect more experiential beverages and nutritious, satisfying bites for the afternoon day part," Niccol said. "This month, we'll start testing new coconut water-based tea and coffee beverages in select markets, and we'll lean into customer needs with upcoming tests of gluten-free and high-protein options to create food that's as artisanal as our beverages." Michael Della Penna, chief strategy officer at the digital advertising research firm, InMarket, which publishes regular reports on fast-casual restaurant customer loyalty, told Business Insider that the demand for high-protein drinks and food options has been accelerating over the last 3-5 years. A study by Cargill found that more than 60% of Americans increased their protein intake in 2024 — a rise from 48% in 2019. Gen Z, in particular, loves a high-protein option and tends to prefer customizable menu offerings and cold beverages, Della Penna said, making an optional protein add-on like cold foam a perfect blend to capture trending tastes. "The other interesting part of it is the routine that a drink like that can create for a consumer," Della Penna said. "By introducing protein, that's a great way to get a consumer back as they move about their daily lives, particularly when going to work out and then stopping to get a cold brew with a scoop of protein. That creates that sort of repeatable pattern of visitation and purchase that a drink like that can offer to a segment within their customer base." With Gen Z and fitness fans in mind, move over, pink drink — it's protein's time to shine. Have a tip? Contact this reporter via email at Katherine Tangalakis-Lippert at ktangalakislippert@ or Signal at byktl.50. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. Read the original article on Business Insider Solve the daily Crossword
Yahoo
30-07-2025
- Business
- Yahoo
Starbucks Wants to Tap The Protein Trend. Here's How
Key Takeaways Starbucks will soon offer protein cold foam and is exploring gluten free and protein-centric foods, CEO Brian Niccol said. The macronutrient is having a moment, with companies marketing everything from cereal to popcorn as a way to get more protein. Starbucks' assessment of its menu is part of a larger effort to turn around sluggish sales by making cafes more wants to milk the protein craze as it refreshes its menu. Starbucks (SBUX) will start offering a cold foam featuring 15 grams of protein near the end of the current quarter, CEO Brian Niccol said on a conference call Wednesday. The sugar-free topping may be accompanied by high-protein and gluten-free food, as well as other items on tap for trial—like waffles, pancakes and coconut water-based drinks, Niccol said. 'We will bring a consistent drumbeat of innovation to market" this fiscal year, Niccol said, according to a transcript made available by AlphaSense. Menu changes will center on premium coffee and 'function-forward, modern' and 'artisanal food," he said. Protein will show up first as part of an already-popular add on. Orders with cold foam—a cool, frothy topping typically made with dairy—grew 23% year-over-year in the fiscal third quarter, Niccol said. Americans are particularly focused on their protein intake because it can make people feel full, potentially aiding in weight loss and muscle development. About 85% of consumers said they wanted to consume more protein in 2025, according to a survey commissioned by the yogurt company Chobani last year. (Most Americans get enough protein if they eat a sufficient amount of food, nutritionists say.) Food companies have been catering to the demand, marketing protein-laden versions of everything from Cheerios to popcorn. The dessert brand Milk Bar teamed up with the company Premier Protein to sell cookies, cakes and truffles with the macronutrient in August. PepsiCo (PEP) is rolling out a line of protein-forward drinks, playing to 'a consumer trend that is scaling up in the U.S.,' CEO Ramon Laguarta said earlier this month. Protein-centric foods may be coming to Starbucks next. Niccol said cafes' baked cases will be refreshed in early 2026 and that 'nutritious, satisfying bites' can be expected later in the year. U.S. stores may also take menu cues from Canadian cafes, which have been selling waffles and pancakes, he said. The refreshed menu is part of Starbucks' quest to cultivate a more traditional cafe atmosphere and lure customers back to stores. The company plans to close the 80 or 90 locations that strictly fulfill mobile orders because they're 'overly transactional,' and reevaluate its North American portfolio, Niccol said. Starbucks is also refreshing cafe interiors, working on new designs and taking other steps to make shops more inviting. Starbucks' shares were recently off less than 1% after it handed in mixed results Tuesday night. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
