Dive Brief:
- The return of the Pumpkin Spice Latte at Starbucks on Aug. 26 propelled the chain to a record-breaking sales week at U.S. company-operated stores, CEO Brian Niccol said in a statement last week.
- The chain had its strongest Tuesday sales ever on the launch of the PSL, which is the day of the week when the brand typically launches its heavy-hitting fall LTO, Niccol said.
- Traffic surged more than 27% compared to average traffic on Tuesdays throughout the year, and its fall menu launch was roughly twice as successful at boosting traffic as similar moves by Dunkin’ and Dutch Bros, according to data from Placer.ai.
Dive Insight:
The success of Starbucks’ PSL launch indicates that the coffee giant is still the leading brand in the coffee sector, Shira Petrack, Placer.Ai’s head of content, wrote in an analysis. Starbucks has faced trouble in recent years and the rise of both mobile-focused brands like 7 Brew and Dutch Bros and more experiential, premium cafe chains like Bluestone Lane, has put pressure on national coffee brands generally.
“[Starbucks] sets the benchmark for the entire industry,” Petrack wrote. “The brand’s ability to blend product innovation with cultural relevance reinforces its position as the undisputed leader in the seasonal beverage market.”
Niccol attributed the success of the launch to some of Starbucks’ recent changes, including increased investment in labor hours under its Green Apron Service plan.
The PSL, long a staple of the seasonal calendar at Starbucks, presents an opportunity for the chain to show off operational changes — like mobile order sequencing and the deployment of new stock-keeping tools — for consumers. Starbucks has transformed an LTO into a ritualized cultural institution, with its own ability to shape consumer behaviors and build anticipation, Petrack wrote.
It’s unclear if the launch this year will help Starbucks break out of a long-running traffic and same-store sales slump — Placer.ai found traffic was on par with the 2024 launch — but it presents, in calendar terms, the strongest opportunity for the brand to shake off its malaise in the back half of 2025.
