Starbucks banks on pumpkin spice latte to reverse sales slump

STARBUCKS is deploying one of the most potent weapons in its arsenal to bring customers back into stores: the pumpkin spice latte.

The fall product lineup is taking on extra weight this year after the coffee chain ousted its chief executive officer in a surprise move last week. Fan-favourite autumn beverages are key to the company’s plan to reverse two quarters of same-store sales declines.

The pumpkin spice latte returns Thursday (Aug 22) for the 21st straight year. Starbucks is also introducing a new iced apple non-dairy cream chai, plus two other apple beverages that will only be available on its app. Returning offerings include a pumpkin cream cold brew.

Starbucks is bringing in a restaurant industry heavyweight to take over as CEO next month. Brian Niccol, who most recently led a turnaround at Chipotle Mexican Grill, is on track to become one of the highest paid CEOs in the US. Starbucks investors applauded the choice, sending the shares up 25 per cent on the day of the announcement. 

Niccol will have to contend with inflation-weary consumers forgoing US$6 iced lattes, escalating wait times and staffing changes that have angered once-loyal customers.

The autumn drinks aim to meet demand for seasonal beverages while also catering to Gen Z and millennials’ preference for tea-based, cold and non-dairy beverages, according to Starbucks. The company added that drink customisation in the latest quarter was up 28 per cent from a year ago. BLOOMBERG