Starbucks Targets Afternoon Customers with New Energy Drinks and Matcha Offerings
January 29, 2026
Business News

Starbucks Targets Afternoon Customers with New Energy Drinks and Matcha Offerings

The coffee giant aims to boost lagging afternoon traffic by diversifying its menu beyond traditional coffee options

Summary

Starbucks is expanding its menu to attract more customers during the slower afternoon hours by introducing new snack items and a variety of beverages such as revamped energy drinks, teas, and matcha-based drinks. This strategy marks an important element of CEO Brian Niccol's plan to revitalize the brand and counter competition from emerging coffee chains.

Key Points

Starbucks is launching a new afternoon menu at U.S. locations featuring teas, revamped energy drinks with caffeine from green coffee extract, matcha drinks, and snacks with a focus on health trends.
Afternoon periods have historically been slower for Starbucks, creating potential growth opportunities as consumers seek spontaneous and varied beverage options beyond their routine morning coffee.
This initiative forms part of CEO Brian Niccol’s turnaround plan, with early signs showing improvements in same-store sales and traffic after about two years of stagnation.
The energy drink segment is a significant market opportunity, valued at $25 billion, and Starbucks aims to differentiate itself by using more natural ingredients in its drinks, targeting health-conscious consumers.

Starbucks, a dominant force in the morning coffee market, now plans to increase foot traffic during the afternoon by broadening its menu with an assortment of new drink and food options designed to appeal at different times of the day. The coffeehouse chain’s U.S. locations will begin rolling out these changes over the coming weeks as part of an effort to provide customers with more diverse choices, particularly in the afternoon hours when demand has traditionally been weaker.

The introduction of this new afternoon menu includes a range of snacks and beverages that extend beyond Starbucks’ classic coffee selections. Among the new offerings are enhanced energy drinks featuring green coffee extract, matcha beverages, teas, and customizable drinks with international flavor profiles, such as those incorporating ube and lavender.

Industry experts note that mornings tend to be highly regimented in terms of beverage choices, but afternoons present a more spontaneous opportunity for consumers to try different drinks that fit their current mood or the day’s weather conditions. As Tressie Lieberman, Starbucks’ global chief brand officer, pointed out, customers seek different beverage experiences in the later part of the day, creating an opening for the brand to expand its afternoon appeal.

Despite Starbucks’ dominance in the morning caffeine market, the company has faced increasing competition from smaller coffee chains like Dutch Bros. and Black Rock Coffee. These competitors have captured some market share and have been successful in attracting customers during various parts of the day, including the afternoon. According to Robert Byrne, senior director of consumer research at Technomic, afternoons have been historically slower periods for Starbucks, representing untapped potential for growth. Byrne emphasized that afternoon visits serve as mental or emotional breaks for many consumers, suggesting ample opportunities for Starbucks to enhance these offerings and increase customer visits.

Enhancing the afternoon menu aligns with CEO Brian Niccol’s broader turnaround strategy for Starbucks. After initial challenges, recent changes to the menu and operational improvements appear to be yielding positive results. The company recently reported its first increase in U.S. same-store sales and traffic in roughly two years, indicating traction with these initiatives.

A central component of the new afternoon strategy is Starbucks’ re-entry into the energy drink market, a space in which smaller competitors have already established a strong presence. Starbucks had previously tried to compete in this segment but withdrew about a year ago while simplifying its menu. The new lineup revitalizes the brand's Refreshers beverages by incorporating caffeine sourced from green coffee extract—the natural essence derived from unroasted coffee beans. Lieberman highlighted that this natural caffeine source differentiates Starbucks in a market often dominated by synthetic ingredients in energy drinks.

This move taps into the growing demand among health-conscious consumers. Industry data from Circana indicates that the “health-minded” segment now represents approximately 40% of all food and beverage sales, with energy drinks constituting a $25 billion market. Starbucks is also introducing a new chai latte that allows customers to adjust sweetness to their preference and is exploring global flavor inspirations that align with current wellness trends.

The company’s food offerings are also evolving alongside the beverage expansion. Starbucks plans to introduce more savory, protein- and fiber-rich items, responding to popular wellness trends that emphasize nutrient density. Additionally, the brand aims to provide convenient, portable options geared for afternoon consumption, such as handheld items like flatbreads or pizza made with simple, clean ingredients. Given that food sales at Starbucks approach nearly $6 billion annually and have historically focused on breakfast options, this pivot underscores a strategic effort to capture more afternoon demand.

While these new food and beverage items target the afternoon daypart, they will be available throughout the day. Starbucks intends to adjust its menu boards and mobile app to spotlight these offerings during afternoon hours, encouraging not only repeat visits from morning customers but also attracting new patrons who might consume Starbucks coffee at home in the morning and then seek a different experience later in the day.

Lieberman emphasized the dual opportunity the updated menu presents: reaching existing morning customers again in the afternoon and appealing to incremental customers. This two-pronged approach is crucial for Starbucks as it seeks to expand its customer base and strengthen sales during a key but traditionally slower daypart.

Risks
  • The overall success of attracting afternoon customers depends on whether new menu items can meaningfully draw consumers during a traditionally slower daypart.
  • Competition from smaller coffee chains like Dutch Bros. and Black Rock Coffee remains a challenge, as they already have established presence with energy drinks and non-coffee beverages popular in the afternoon.
  • The acceptance of revamped menu offerings, especially those appealing to health-conscious consumers, depends on accurately aligning with evolving tastes and preferences.
  • Menu complexity could potentially deter customers if the offerings are not clearly communicated or if operational execution is inconsistent during the transition period.
Disclosure
Education only / not financial advice
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