Though founded as a traditional hot coffee shop more than five decades ago, Starbucks reports that three out of every four drinks it now sells are cold, ranging from iced fruity beverages and protein shakes to layered concoctions known as dirty sodas. Younger consumers, specifically Gen Z buyers born between 1997 and 2012, increasingly drive this demand by choosing cold drinks they can tailor to their exact preferences.
Shifting Consumer Tastes and the Rise of Cold Customization
Elaine Ling splits her time between New York and California, but wherever she is and needs a coffee, she doesn’t visit a Starbucks. She only goes there for her cold drinks. Her “real coffee” comes from local cafes. Elaine Ling, 21, told the BBC:
“I don’t really like to go to Starbucks for coffee. I think their coffee is like too sweet,”
Elaine Ling, 21
“I’m more of a refresher girl when it comes to going to Starbucks.”
Elaine Ling, 21
Gen Z consumers – people born between 1997 and 2012 – are increasingly choosing cold drinks that they can customise themselves over traditional coffee. Tristan Höver, global insight manager for hot drinks at Euromonitor International, says younger consumers increasingly see drinks as something they can tailor to a specific moment or need.
“Customisation gives them a sense of control.”
Tristan Höver, global insight manager for hot drinks at Euromonitor International
He says Gen Z is price-.
Financial Pressures and Competitive Landscape
As earnings season comes into full bloom, some businesses outside big tech are capturing the attention of investors. Coffee chain Starbucks (SBUX +0.55%) is a closely followed company because its trends can offer unique insights into the health of the economy and consumer purchasing habits. Last week, Starbucks released results for its second quarter of fiscal 2024, ended March 31. Overall, the report didn’t leave much to be desired, and shares have cratered 14%. Let’s dig into Starbucks’ earnings report and analyze why I see a different coffee chain stock as the better buy.
Analyzing retail businesses can be daunting. For starters, when a retail company reports revenue growth, it can be misleading, because investors often are not told how much of this growth is derived simply from price increases. Moreover, considering retail businesses are constantly opening and closing locations, it can be hard to assess a company’s organic growth trends. For this reason, one of the most important metrics for retail businesses is same-store sales. Same-store sales can be seen as a more useful metric t.
When Starbucks’ fall menu was leaked in July of this year, some customers were highly dismayed to learn that their favorite Apple Crisp coffees weren’t being brought back. (Instead, we’re all getting banana bread-flavored drinks, along with some matcha and pecan). But never fear, apple fans, another big coffee chain is stepping in to fill those shoes. Canada-based Tim Hortons, famous for its donuts, is dropping a line of cinnamon caramel apple lattes along with everyone’s favorite pumpkin spice drinks. Despite its Canadian home base, Tim Hortons does have a significant presence in the United States, so there’s a good deal of you who can drop by to snag an apple-flavored latte.
We learned this apple-flavored news from an Instagram post by food enthusiast @markiedevo, and a few customers are already cheering it on, saying things like:
Thanks @timhortonsus for actually giving us apple unlike some coffee shops,” and “@timhortonsus thank you for thinking of the Apple lovers!! I am now a Timmies girl, I’m boycotting @starbucks becau
Customers commenting on Instagram
Menu Innovation and Operational Adjustments
This summer, it’s all about drinks that double as dessert – and Starbucks are leading the way with its new range of Cloud Frappuccinos, out today. We were the very first to try all three, and we’ll be first in line to order another. There are three flavours landing in the UK today – Strawberry Matcha, Brown Sugar and Caramel Mocha – but it’s the first that really stands out.
First impression: it’s quite the looker, with a matcha green base, topped with an eye-catching thick layer of pink cold foam. The first sip is pure nostalgia, with a flavour that’s surprisingly close to a McDonald’s strawberry milkshake – sweet, creamy and weirdly familiar. But as you drink, the layers start to shift, giving way to the cloud-like foam on top, where the flavour turns into something closer to raspberry ripple or strawberry jam. Yum!
The Brown Sugar is on the other end of the spectrum – rich, syrupy and seriously sweet, it’s one for those who want a full-on dessert in a cup. Meanwhile, the Caramel Mocha sits somewhere in the middle, with a more classic coffee-shop profile but s.
Yes, you read the headline right. Starbucks has started selling a natty, retro-styled compact camera with dual sensors for easy selfies, trendy filters and more for the equivalent of $30. The kicker being that you will need to be in China to get one. The Starbucks Retro Digital Camera was recently released in China for the start of the 2025 holiday season, costing only 198 yuan – about $28 or £21. That’s less than you can pay for a quick breakfast for two at the coffee chain, particularly at an airport.
While the camera may be cheap, it definitely doesn’t look cheap and nasty. It features a leather finish and comes in burgundy gold or green silver. Indeed, a lot of big Japanese camera makers, with their boring black boxes, could take some styling cues from Starbucks here. Look aside, the budget coffee companion includes a second sensor. It’s ingeniously placed where the viewfinder would usually sit, giving you a functional selfie camera. Simply frame yourself and your cup of morning Joe on the rear LCD, as you would with a smartphone, and you get a selfie. The front sensor is used for framing shots.
We may already be a week into pumpkin spice season for some coffee shops and fanatics, but true holdouts for the beloved Starbucks (SBUX) – Get Free Report drink still have a few days to go until it’s officially PSL season. Typically, Starbucks brings its Pumpkin Spice Latte back on the last days of August, when many students are back in school and summer festivities are winding down. It then continues to release seasonal offerings throughout the rest of the year (Eggnog Latte, anyone?). Starbucks will reportedly begin rolling out pumpkin spice drinks on August 24 and remove them around November 1. It doesn’t look like the coffee chain will be offering its fall favorites earlier this year, though it has been experimenting in the kitchen with some new flavors.
Food blogger and Instagrammer @Markie_Devo reported several weeks ago that it will roll out an Iced Pumpkin Cream Chai Tea Latte, Iced Apple Crisp Oatmilk Shaken Latte, and Baked Apple Croissants at participating stores. But those aren’t the only new drinks hitting stores during the second ha.
Sure, in many cases Starbucks may be the most convenient option for coffee lovers on the run, but what if you could get a drink made to your liking, but without any risk of things going wrong? Introducing Cafe X. This futuristic coffee shop of sorts uses industrial-grade robotic arms to make your drink, and it’s open 24-hours to boot. Simply enter your order into a tablet kiosk (or app), along with payment details, and the arms go to work.
“It can, with a great deal of dexterity, hold, stir, and even transport cups filled with hot liquid without spilling any of it, or burning itself. It then places the cup onto a platform which descends into a chamber that you can then put your hand into and collect the cup of coffee that’s been perfectly brewed to your liking. The biggest advantage? 24 x 7 coffee shops because you don’t have to worry about human labor.”
Yanko Design
Author Jackson Chung, a technology, gadget and video game enthusiast that loves covering the latest industry news, noted his favorite trade show is the Mobile World Congress in Barcelona.
