NextFin News - Starbucks has recorded a notable rise in afternoon customer traffic in its U.S. stores, signaling that the early turnaround efforts of CEO Brian Niccol are beginning to gain traction. According to internal company data shared with CNBC, visits after 2 p.m. are growing fastest between 3 p.m. and 5 p.m. over a 90-day period ending May 16. This shift represents a critical milestone for the coffee giant, which has historically struggled to maintain momentum once the morning rush subsides.
Erin Silvoy, senior vice president of global marketing and channel development at Starbucks, stated that while mornings remain a strong foundation, the afternoon is emerging as an additive growth engine. Silvoy noted that customers are increasingly stopping in later in the day for a break or a refreshing beverage. This momentum is heavily supported by the company's Refreshers platform, which has now climbed to become the second-best-selling beverage category behind espresso.
The afternoon push is a central pillar of Niccol's strategy to revitalize the chain. Since taking the helm, Niccol has repeatedly pointed out that Starbucks has underperformed fast-food and beverage rivals during the post-lunch hours. In an earnings call in January, Niccol characterized the afternoon daypart as a source of tremendous upside, arguing that the company needed more relevant beverages to help customers reset their day. The strategy appears to be yielding financial results; Starbucks recently posted stronger-than-expected quarterly earnings, marking its second consecutive quarter of traffic growth, while its shares have risen 21% year-to-date as of Wednesday's close.
Despite these encouraging internal metrics, some industry observers urge caution before declaring a complete victory. The 90-day data window, spanning from mid-February to mid-May, represents a relatively short operational period that may be influenced by seasonal promotions and temporary consumer curiosity. Furthermore, the battle for the afternoon consumer is intensifying. Competitors are not standing still. Dutch Bros recently highlighted strong momentum in energy drinks and cold beverages during later day hours, and Dunkin' has also expanded its afternoon offerings. This aggressive push by rivals means Starbucks must continuously innovate to retain these late-day visitors.
The financial stakes of capturing the afternoon market are immense. In the fiscal year 2025, hours after 11 a.m. generated $11 billion in sales for Starbucks in the United States. However, converting occasional afternoon visitors into loyal, repeat customers requires operational consistency that Starbucks has sometimes struggled to maintain during peak hours. If mobile orders clog the counters or wait times stretch too long, the afternoon \"reset\" that Silvoy described could easily turn into a source of customer frustration.
The coming quarters will test whether Starbucks can translate this temporary afternoon bump into a permanent structural shift. For now, the digital menu boards promoting \"Good Afternoon\" drinks across U.S. stores serve as a visible reminder of a giant trying to learn how to run fast in the second half of the day.
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