A customer picks up a takeout order at a Starbucks store in California. Starbucks has long dominated the morning hours with its coffee, and now the brand hopes to entice consumers to return later in the day with another type of caffeinated beverage. In the coming weeks, Starbucks U.S. locations will introduce a new afternoon menu, featuring a variety of new small bites and a range of drinks distinct from its core coffee offerings, including tea beverages, upgraded energy drinks, and matcha drinks. "Morning consumer behavior is often highly routine, while afternoon consumption is more spontaneous," said Tracy Lieberman, Starbucks Global Chief Brand Officer, in an interview. "People might want a different drink based on how their day is going or the weather." She stated that this creates a new business opportunity for Starbucks. In recent years, some of Starbucks' competitive advantages have been challenged by emerging coffee brands like Dutch Bros and Black Rock Coffee. Robert Byrne, Senior Director of Consumer Research at foodservice industry research firm Technomic, noted that the afternoon has traditionally been a slower period for Starbucks, representing a significant area for potential growth. "For many consumers, taking a break in the afternoon to visit their favorite beverage shop offers a brief respite, allowing the mind to relax and mood to improve," he said in an interview. "I believe there is a substantial business opportunity in this area." Expanding afternoon beverage and food options is a core initiative in the revitalization plan led by Starbucks CEO Brian Niccol. Although progress was initially slow, the menu adjustments and other optimization measures he spearheaded are beginning to show results: the Seattle-based company announced this Wednesday that its U.S. stores saw their first growth in comparable store sales and customer traffic in approximately two years. A major focus of the afternoon menu is Starbucks' newly launched energy drink—a category already populated by numerous smaller competitors. Starbucks had previously attempted to enter this popular segment but discontinued the development and sale of related products about a year ago as part of a menu simplification effort. The new energy drink is based on Starbucks' popular Refreshers beverages, with caffeine extracted from green coffee extract, meaning unroasted coffee beans. Lieberman said this formulation gives Starbucks a differentiated competitive advantage, as most energy drinks on the market contain significant amounts of artificial ingredients. A report released this week by industry research firm Circana stated that "health-conscious consumer groups" are rapidly expanding and now account for approximately 40% of total food and beverage sales. Within this, the energy drink market has grown to a size of $25 billion. To cater to health-conscious consumers, Starbucks is also launching several new beverages, including a new Chai Tea Latte with customizable sweetness levels, and drinks with international flavors like taro and lavender; a new matcha beverage line will also launch next week. Starbucks' food offerings are also receiving a comprehensive upgrade, with the addition of several new savory snacks rich in protein and dietary fiber—two nutritional components that are currently popular health trends—alongside more portable food options suitable for the afternoon. Lieberman mentioned that the food business brings in nearly $6 billion in annual revenue for Starbucks, yet the brand's focus has historically been heavily skewed towards breakfast items. "We plan to add more portable food items, such as pizzas and flatbreads, which are easy to carry, and they will be made with minimal, natural ingredients," she said. Although these drinks and food items are targeted at afternoon consumption, they will also be available during the morning hours. Starbucks will adjust the display content on in-store menu boards and its mobile app to prominently feature these new products in the afternoon, hoping to attract customers who typically only visit in the morning to return later in the day. "This is a huge opportunity," Lieberman said. "We can not only attract our regular morning customers to return to the store in the afternoon but also tap into new consumer groups—such as those who brew Starbucks coffee at home in the morning, whom we have the potential to attract for an afternoon store visit."