Starbucks Reports Record Revenue, Driven Mostly by Gen Z’s Love of Iced Drinks

Customers flocking to Starbucks and ordering Pineapple Passionfruit refreshers and Iced Shaken Espressos helped propel the coffee giant’s revenue to a record $8.2 billion in the latest quarter, the company said on Tuesday.

And while McDonald’s and other restaurants and food companies that have reported earnings over the last couple of weeks have noted that they were beginning to see customers slowing their spending or trading down to cheaper items on their menus, executives at Starbucks said its customers — and specifically the Generation Z cohort — showed no signs of reducing their intake of Iced Cinnamon Dolce Latte anytime soon.

Howard Schultz, Starbucks’ founder and interim chief executive, said cold beverages, which accounted for 75 percent of its beverage sales in the quarter, were a Gen Z favorite because young consumers like to customize and make the drink their own, and then post pictures on social media.

Article source: https://www.nytimes.com/2022/08/02/business/starbucks-quarterly-earnings.html