Marketing

The Pumpkin Spice Latte apparently drove record sales at Starbucks

Brian Niccol, CEO of the coffee shop giant, said that the company drew record sales last week after the introduction of its annual fall menu.
starbucks
Starbucks' fall menu was apparently a hit with U.S. consumers. | Photo courtesy of Starbucks.

This is why Starbucks keeps bringing back the Pumpkin Spice Latte. 

The introduction of the popular fall beverage, along with the rest of the fall menu lineup, drove record sales last Tuesday, the day the menu was released, CEO Brian Niccol said in a system message on Tuesday. 

Those record results apparently continued through the week, giving the company a record-breaking week. 

“Tuesday’s fall launch was our strongest Tuesday sales day ever,” Niccol said. “I’m thrilled to say that you continued that momentum through the week, helping us deliver record-breaking sales across our U.S. company-operated stores.”

He added that Canadian stores had “an incredibly strong week,” too.

Starbucks’ stock rose nearly 2% on Tuesday in an otherwise dreary day for Wall Street on the news.

The coffee chain rolled out its fall menu last week, four days after the date of the rollout a year ago. It featured a Pumpkin Cream Cold Brew and Iced Pumpkin Cream Chai, along with pumpkin spice-flavored drinks at its higher-end Reserve locations, such as a Pumpkin Spice Whiskey-Barrel-Aged Manhattan. 

The annual rollout traditionally gives Starbucks a boost, making the introduction particularly vital for the chain’s fall sales. 

The rollout this year has come in the backdrop of a particularly difficult environment for the chain, which has struggled with weak sales for a year and a half. Yet the company has periodically had success with its promotions, such as record-breaking sales on the Monday after the Super Bowl in February.

The company has also spent the past year reorganizing its management team, cutting corporate staff and shifting the focus back to its in-store service. The company recently added labor in its shops and gave store managers a say in how to use those workers, which Starbucks calls “partners.”

That was designed to improve speed of service and throughput at the shops. Starbucks rolled out those investments, known as the “Green Apron” service model, in August to prepare for the launch of the PSL.

“With Green Apron Service, we’ve invested significantly more partner hours in our coffeehouses,” Niccol said. “And you are making great use of those additional hours, adding more partners to shifts where they are needed most.” 

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