Starbucks says afternoon traffic is rising amid turnaround
Digital menu boards at a Starbucks promote “Good Afternoon” drinks, highlighting the company’s effort to increase afternoon traffic as part of its turnaround strategy.
Courtesy: Starbucks
Afternoon traffic becomes bigger growth engine StarbucksThe company said Thursday as CEO Brian Niccol delved deeper into a key part of its turnaround strategy.
Coffee giant sees more customers visiting the US According to data shared exclusively with CNBC, stores open after 2 p.m., with the strongest growth window coming between 3 p.m. and 5 p.m. It covers 90 days between February 15 and May 16.
This is an encouraging sign for Starbucks as it looks to drive more consistent traffic beyond the morning coffee rush. As Niccol tried to return the chain to steady growth, Starbucks targeted both repeat visits and longer stays throughout the day.
“Later in the day, we see more customers stopping by for a break, a refreshing drink or a few minutes at the coffee shop,” said Erin Silvoy, senior vice president of global marketing and channel development.
“Mornings continue to build a strong foundation for Starbucks. What’s emerging is something additive: more opportunities, more ways to visit, and more reasons to come throughout the day,” Silvoy said.
One blog post Last month, Starbucks said it had $11 billion in sales in the United States in the 11 a.m. hours in fiscal 2025.
Starbucks’ Refreshers platform, which is now the company’s second best-selling beverage category after espresso, has been a major contributor, executives said.
The afternoon momentum adds to signs that Niccol’s early recovery efforts are starting to gain traction. Starbucks recently reported stronger-than-expected quarterly earnings, reassuring investors who are closely watching traffic trends, pricing and operational improvements under its new leadership team. The chain’s traffic increased for the second consecutive quarter.
Shares were up 21% year-to-date as of Wednesday’s market close.
Niccol has repeatedly identified afternoons as a big opportunity for the chain, arguing that Starbucks has historically underperformed its fast-food and beverage rivals during the day.
In a January earnings call, Niccol said “creating a daypart in the afternoon” meant “tremendous upside” for the company.
“I think there’s a tremendous opportunity to unlock the afternoon part of the day by offering drinks that are more in line with how people want to reset their day,” Niccol said at the time.
The battle for afternoon consumers is heating up as rivals target the after-lunch market. Dutch Brothers While emphasizing that energy drinks and cold drinks have recently gained strong momentum later in the day, Dunkin’ also extended beverage innovation and snack offerings for afternoon visits.
TD Cowen analyst Andrew Charles said the new items will be a key factor in Starbucks’ strategy to gain more customers in this window.
“We expect menu innovation, marketing and digital menu boards to help drive afternoon ticket and traffic growth, supported by improved operations to keep Starbucks top of mind at coffee break,” Charles said.
TD Cowen earlier this month upgraded Starbucks to buy from hold and raised its price target to $120 from $106. Shares are currently trading around $102.
The latest traffic trends for Starbucks suggest that its push to become an all-day beverage and food destination may be starting to resonate with customers and investors.
