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It might not feel like fall. Beaches are still full this week ahead of Labor Day, and school hasn’t started in much of the country. Temperatures are still in the 80s in some places.
But at Starbucks, fall arrives Tuesday, with the return of the Pumpkin Spice Latte – or PSL.
The fall staple is likely to once again cause a spike in Starbucks sales. Last year, the return of the PSL on August 22 caused a 24.1% surge in sales above the normal Thursday average (the day it was released) and stayed elevated through the weekend, according to estimates from Pacer.ai. Starbucks disclosed last year that roughly 10% of its overall sales came from seasonal staples.
Starbucks could use a sales boost. The number of transactions at stores open at least a year has declined in every quarter, as has revenue in those stores. The company’s net income plunged nearly 50% in the most recent quarter, leaving year-to-date profits down about 40%.
Former Chipotle leader Brian Niccol became Starbucks’ CEO last September, instituting a number of changes to try to help revive the brand. He’s tweaked employee uniforms, overhauled the menu by cutting 30% of its offerings and is testing a new café design that encourages paying customers to linger.
Since its 2003 launch, the PSL has taken on a life of its own, becoming a signal for fall that is both beloved and mocked. It also ushered in an era of pumpkin spice products, from trash bags to yogurt and even whiskey.
– CNN’s Jordan Valinsky contributed to this report.
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