dance, pointing to growing confidence that its turnaround is taking hold. “Our ‘Back to Starbucks’ plan was built on the belief that an extraordinary cup of coffee, human connection and customer experience win the day, every day,” said Niccol. “Our third quarter results are proof they do. We have more work to do, but we’re relentlessly focused on reclaiming the third place and becoming the world’s greatest customer service company.” Retail Creative and Consulting Agency principal Christine Russo agreed with Niccol, arguing that the recent sales increase was driven less by any specific strategy to boost the brand’s “cool factor” than by a renewed focus on the fundamentals. “There is not one silver bullet contributing to their growth,” she told Inside Retail. “Over-reliance on the morning rush has been a long-standing challenge for Starbucks and this is a shift. Additionally, mobile order wait times have improved and seating has been upgraded. This is a pivot away from when they were forcing customers to be mobile and away from the ‘third place’. “They are meeting Gen Z’s taste with a focus on cold drinks and customization. Their rewards momentum also strengthened with the revamped tier system. I expect we will see more growth as a result of these changes.” Experts break down how Starbucks is reclaiming its “cool” factor Barney Stacher, CEO of consultancy Retail OCD, echoed Russo’s assessment, saying Starbucks is regaining relevance by rediscovering what made it distinctive while adapting the brand for younger consumers. Although Gen Z is responding to Starbucks’ expanded range of cold beverages, matcha, energy drinks, customization options and visually shareable products, Stacher said the turnaround is not simply about the menu. “Under Brian Niccol’s ‘Back to Starbucks’ strategy, the company has simplified operations, reduced wait times and begun restoring stores as comfortable social spaces. That combination appeals to younger consumers seeking personalization and experience while welcoming back longtime customers who remember Starbucks as a coffeehouse – not merely a mobile-order collection point,” said Stacher. “The ‘cool factor’ is returning because Starbucks is once again giving people something to participate in, and a place to be, not just something to purchase. Customizable drinks provide creative expression; the app and loyalty program provide convenience; and warmer, more social stores restore a sense of community.” Adding to Russo and Stacher’s observations, Frankie Margotta, strategy director at consulting firm Triptk, said that while improved infrastructure and products have played a role, the bigger shift has been re-establishing what made the brand compelling and distinctive in the first place. “Starbucks occupies a distinct space between a European café and an American quick-service restaurant, and that balance matters. Lean too far toward one side and it loses to local artisanal shops and pop-ups. Lean too far toward the other and the brand starts to feel cheap and forgettable. Starbucks has to exist in between,” said Margotta. He said the renewed focus has helped win back loyal customers who appreciate the care and intention Starbucks offers alongside convenience and variety. “This is the core crowd that cares enough about what they’re drinking to taste the difference, but not enough to wait 20 minutes for a pour-over, even if they’re happy to sit down and spend an hour sipping it. They can stay if they’d like or be done in 30 seconds when they order ahead and time it right.” Margotta added that Starbucks has also leaned into the familiarity of its iconic green straw and siren logo, while maintaining affordable price points to appeal to younger consumers. “Starbucks does a good job of creating an owned lexicon and making personalization central to the experience. Individuality matters in Western culture, period, but it’s especially important to younger audiences moving through accelerated micro-trend cycles, where almost anything can become a core overnight. Starbucks lets them participate in status at an accessible price point, so the purchase is premium without seeming overly indulgent. They can still feel conscientious and trendy while customizing their drink enough to make it feel unique and their own.” How Starbucks can sustain momentum This year alone, Starbucks opened 175 net new stores, bringing its total to 41,304. The company now expects to open approximately 600 to 650 net new coffeehouses globally this fiscal year. Stacher said this expansion could reinforce Starbucks’ position as a community-focused brand. However, he also warned that while scale can make Starbucks more accessible, too much sameness can quickly make that accessibility feel ordinary. “It should continue developing culturally relevant beverages without chasing every viral trend, improve value perception without becoming overly promotion-dependent, and give individual stores enough local personality to feel connected to their communities,” he said. “Starbucks does not need to become the newest coffee brand in the room. It needs to make its familiarity feel desirable again – and the latest numbers indicate that’s starting to happen.” Finally, Neil Saunders, managing director at GlobalData, told Inside Retail that Starbucks has spent considerable time putting its house in order, which is helping drive its performance. “Service standards have improved and some investment has been made in making cafés a more pleasant place to linger in. There has also been some good menu innovation, such as focusing on protein drinks. All these things have helped to pull in more younger consumers, particularly as the social side of the experience is important to them. The challenge is to keep enhancing the experience and continuing to have innovation that helps capture consumer attention.” Further reading: Starbucks adds 175 stores as Q3 sales rebound