Starbucks Has An Unexpected Growth Driver, And It Isn’t Coffee

Cold beverages are gaining importance within Starbucks’ business. Refreshers posted double-digit revenue growth in the United States during the third quarter of fiscal 2026, driven by new flavors, customizable energy options, and stronger afternoon demand.

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The category’s performance contributed to the chain’s overall recovery. Starbucks’ global comparable store sales increased 7.9%, driven by 4.2% growth in transactions and a 3.5% increase in average ticket.

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In the United States, comparable store sales also increased 7.9%, with transactions rising 4.2% and average spending increasing 3.6%. The company said growth occurred across all dayparts, although it identified the afternoon as one of its biggest opportunities.

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Refreshers has become a strategic platform for attracting consumers beyond traditional hot coffee and expanding the occasions when customers visit its stores.

Why are Refreshers growing for Starbucks?

Starbucks attributed the platform’s performance to the launch of customizable energy beverages and offerings such as Blue Coconut and Mango. These innovations maintained customer interest and allowed the category to expand into more consumption occasions.

Brian Niccol, chairman and chief executive officer of Starbucks, said Refreshers continue to resonate with consumers of different ages and can play an important role from morning through afternoon.

The category’s versatility allows Starbucks to offer beverages with different flavors, colors, caffeine levels, and customization options. The latter also helps increase the average ticket.

Beverage modifications were among the factors that boosted spending per transaction during the quarter. Starbucks noted that price increases contributed less than one percentage point to ticket growth, meaning much of the increase came from delivery, customization, and additional food purchases.

Starbucks seeks to capture afternoon consumption

Morning remains the daypart that generates the highest number of transactions for Starbucks. However, the company believes there is still significant room for growth in the afternoon.

To capitalize on this opportunity, the chain is building an offering that combines Refreshers, matcha, Frappuccino, food, and beverages with little or no caffeine.

The company explained that some consumers prefer to avoid caffeine later in the day but continue to look for refreshing and customizable beverages. This trend allows Starbucks to compete for consumption occasions that were previously more closely associated with soft drinks, energy drinks, or products from other chains.

Planned innovations include Blended Refreshers, the return of the Unicorn Frappuccino, and new Orange Cream beverages. Starbucks will also begin testing carbonated beverages in selected markets.

The company did not specify which countries will participate in these tests or confirm whether the new products will be available in Mexico.

Digital menus will support sales across different dayparts

Starbucks will complement its cold beverage strategy with the installation of digital menus. The company estimates that between 80% and 90% of its U.S. stores will have this technology by September 2026.

The screens will allow Starbucks to adjust the products displayed according to the time of day. In the morning, stores will be able to give greater visibility to coffee and breakfast foods; in the afternoon, they can highlight Refreshers, matcha, Frappuccino, and other cold beverages.

The company said digital menus are already helping it better communicate its afternoon offerings. Every store included in its remodeling program also receives this technology.

Starbucks expands Refreshers beyond its coffee shops

The potential of Refreshers is not limited to Starbucks stores. The company has also introduced multi-serve concentrates that allow consumers to prepare these beverages at home.

Starbucks reported that Refreshers concentrates and its Sweet Cream product recorded trial and repeat purchase rates more than twice the levels typically seen in its consumer packaged goods business.

This performance contributed to a 22% increase in Channel Development revenue — the segment that includes products sold outside Starbucks stores — to $587.9 million.

With Refreshers, Starbucks aims to expand its presence in cold beverages, drive afternoon visits, and reach consumers both inside and outside its more than 41,000 locations.