Starbucks wants to lure people back in the afternoon with new energy drinks and matcha

By Jordan Valinsky, CNN

New York (CNN) — Starbucks has an advantage in the mornings with coffee. Now, it wants to lure people back later in the day with a different type of caffeine boost.

The coffee chain’s US locations will roll out a new afternoon menu in the coming weeks, which will include new snacks and a variety of drinks different from its core coffee selections, including teas, revamped energy drinks and matcha.

“If you think about the morning, it’s very routinized, but the afternoon can be a bit more spontaneous,” Tressie Lieberman, Starbucks’ global chief brand officer, told CNN. “You want a different drink based off how your day is going or what the weather feels like.”

That creates an opportunity for Starbucks, she said.

Starbucks has been losing some of its competitive edge to upstarts like Dutch Bros. and Black Rock Coffee. Afternoons are typically a slower time for the chain, said Robert Byrne, senior director of consumer research for Technomic, so there’s potential for growth.

“This is the little miniature break, the brain reset, or the emotional reset that a lot of consumers can get from that quick little afternoon trip to their favorite beverage spot and I think there’s a ton of opportunity there,” he told CNN.

Expanding Starbucks’ afternoon selection has been a key initiative for CEO Brian Niccol’s revival plans. After a slow start, his menu changes and other improvements seem to be working: The Seattle-based company reported Wednesday its first rise in US same-stores sales and traffic in about two years.

A crucial part of the afternoon menu is Starbucks’ new energy drinks, which smaller competitors already offer. The chain previously tried to enter the popular space, but discontinued the effort about a year ago when it slimmed down its menu.

The new version is based on its popular Refreshers drinks brand, and will derive its caffeine from green coffee extract, or unroasted coffee beans. Lieberman said that helps Starbucks stand apart since many energy drinks are made with a lot of synthetic ingredients.

The “health-minded consumer segment” is rapidly growing and now accounts for roughly 40% of all food and beverage sales, Circana, an industry research firm, reported this week. In particular, energy drinks are now a $25 billion market.

Other drink additions appealing to health-conscious customers include a new chai latte that lets customers customize the sweetness level and global flavors like ube and lavender. New matcha beverages are coming next week, too.

Starbucks’ food selection is also getting a makeover, with more savory items packed with protein and fiber, which are two popular wellness trends, and additional on-the-go options for afternoons. After all, food is nearly a $6 billion business for the brand, which has focused heavily on breakfast, Lieberman said.

“We’re looking at adding more handheld options like a pizza or a flatbread that would be portable and use super simple, clean ingredients,” she said.

Despite being advertised for the afternoon, the beverages and foods will also be available in the morning. The chain will reset its menu boards and app to promote the new selections during the afternoon, hopefully luring morning customers back to cafés.

“There’s a big opportunity to bring morning people back in the afternoon as well as bring in another customer, an incremental customer who maybe is doing at-home coffee with Starbucks in the morning and then we can get them back in the afternoon,” Lieberman said.

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