Starbucks Rings Up Record Sales

Customers are not adverse to splurging on syrups, foams and other beverage add-ons.

August 02, 2023

Starbucks reported record sales from its cold espresso and other elaborate coffee drinks, as reported by The Wall Street Journal.

North American same-store sales rose 7% during the quarter compared with last year, slightly below analysts’ expectations. Price increases contributed to the rise in sales, Starbucks said. The company said that customers flocked to cold espresso beverages and ones modified with cold foam and other add-ons.

Starbucks CEO Laxman Narasimhan said U.S. store operations are improving. The company is installing new ovens and coffee machines in stores, and baristas are staying at their jobs longer. “We are executing better,” Narasimhan said during an earnings call on Tuesday.

The company previously reported strong sales in the U.S. even as it raised prices in response to rising labor, coffee and ingredient costs. Customers continue to spend extra on syrups, foams and other add-ons, the company has said.

Narasimhan, who became the CEO in March, said he is seeking to improve Starbucks’s efficiency and optimization to boost the shopping experience for customers. He said Tuesday that the company was making progress on a revamp of the coffee chain. Starbucks said last year that it would invest in store equipment, improve its store designs and increase its incentives for workers.

Enhanced hot beverage programs offer can offer variety, customization and convenience. Read more in the March NACS Magazine Category Close-Up, “Hot Coffee for on the Go.