Coffee chain Starbucks is not suffering from inflation. Customers stopped by more often and spent even more last quarter. Especially the Chinese are happy to enjoy their frappuccinos again.
More frequent and more expensive
Like elsewhere, coffee became more expensive at Starbucks last quarter (up to 2 April). But that didn’t stop coffee lovers. On the contrary, comparable sales were up 11%. Customers went there more often and also spent more in the process.
The coffee chain’s strategy is to let people personalise drinks (add an extra shot or flavour) and also sell them pastries or other snacks. The number of cold and customisable drinks has thus doubled. At the same time, coffee bars continue to be added: 100 in North America and more than 360 internationally.
Now that Covid restrictions have been removed in China, the return of Chinese consumers is also very welcome. Comparable sales there rose 3%, pushing total revenue outside the US up 7%. Earnings clocked in at 74 dollar cents per share, higher than the 65 cents analysts were expecting.
In the second half of the year, growth will admittedly moderate, Starbucks fears. There are already signs, such as less international travel and more cautious consumer behaviour. For the full year, the coffee chain is therefore sticking to its original forecast.