SBUX's Digital Menu Rollout Nears 90%: Can It Lift Afternoon Sales?

Starbucks Corporation SBUX is expanding digital menu boards as part of its effort to strengthen the afternoon daypart under the Back to Starbucks strategy. The company expects the technology to reach roughly 80-90% of its stores by September, giving it greater flexibility to adjust merchandising by time of day and place greater emphasis on afternoon-focused offerings. Starbucks believes this dayparting capability is already helping support afternoon demand. The opportunity is important because afternoon transaction growth still trails the morning, which remains Starbucks' strongest daypart. The company is relying on a combination of beverages, food and improved store routines to broaden afternoon occasions.