Do you want some high-protein cold foam in your coffee? Starbucks backs new products to battle sagging same-store sales

Retail·StarbucksDo you want some high-tein cold foam in your coffee? Starbucks backs new ducts to battle sagging same-store salesBy Dee-Ann DurbinBy The Associated PressBy Dee-Ann DurbinBy The Associated Press Starbucks is leaning into tein.AP Photo/Gene J

Puskar, FileStarbucks said Tuesday it’s confident that imved store operations and new ducts — including a cold foam tein drink — will soon help turn around the company’s lagging U.S. sales

In the meantime, slow U.S. demand continues to be a drag on the company’s results

Starbucks reported that its revenue rose 4% to $9.5 billion in its fiscal third quarter

That was better than the $9.3 billion Wall Street expected, according to analysts polled by FactSet

That was a bigger decline than Wall Street expected, and it was the sixth straight quarter that the Seattle-based company reported lower same-store sales

Same-store sales were up in China, Starbucks’ second-largest market

Starbucks has been looking for a partner that can help it expand in China, particularly in smaller cities

Chairman and CEO Brian Niccol said Starbucks was evaluating around 20 offers. “We remain committed to our China and want to retain a meaningful stake,” Niccol told investors during a conference call on Tuesday. “The intense interest in partnering with us is a testament to the great team, strong brand and long-term opportunity for Starbucks in China

U.S. customers spent more per order, but transactions fell 4%, the company reported

Niccol expressed optimism a new gram setting hospitality standards and staffing levels to better handle peak hours

The “Green An Service” model showed so much mise in an eight-week test at 1,500 stores that Starbucks plans to roll it out across the U.S. starting in mid-August, the company said

New software is also helping stores sequence orders, cutting down on wait times

Niccol said 80% of in-store orders are now made in four minutes or less, a target he set last fall. “I think we’ll become famous for Green An Service and be the defining customer service company that I think Starbucks should be,” Niccol said

Niccol said imving store operations and paring back Starbucks’ was necessary before layering in new ducts

In addition to tein drinks, Starbucks plans to introduce new baked goods and a new dark roast coffee next year

It will also test beverages made with coconut water, customizable energy drinks, and gluten-free and high-tein foods

Niccol said Starbucks has been working closely with employees to develop new food and drink items that can be prepared quickly and consistently

In the past, he said, the company would often develop new items at its headquarters and then hope baristas figured out how to make them. “Those days are over,” Niccol said

Niccol said Starbucks is also trying to encourage customers to linger in its stores

Starbucks is spending heavily to turn itself around

The company said its net income fell 47% to $558 million in the April-June period

That was lower than the 65 cents analysts had forecast

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