In a development that has caffeine purists clutching their pour-overs in despair, Starbucks - the company that built its empire on the humble hot latte - has revealed that three out of every four drinks it sells are now cold. That's right, the era of the iced, fruity, protein-laced, foam-topped concoction is upon us, and it's not just a summer fling.
Elaine Ling, a 21-year-old who splits her time between New York and California, speaks for her generation when she declares, "I don't really like to go to Starbucks for coffee. I think their coffee is too sweet." Instead, she's a "refresher girl," which apparently is a thing now. Her "real coffee" comes from local cafes, because nothing says rebellion like paying $6 for a drink that's more sugar than caffeine.
This preference for cold, customisable drinks is echoing across the US among Gen Z (born 1997-2012). Tristan Höver, global insight manager for hot drinks at Euromonitor International, notes that young consumers see drinks as something to tailor to a specific moment or need. "Customisation gives them a sense of control," he says, which is a polite way of saying they want to feel like they're the CEO of their own beverage destiny, even if that destiny includes 14 pumps of vanilla.
Jerry Sheldon, an analyst at IHL Group, frames this as a cultural shift: "Cold drinks are a form of self-expression." Because nothing says "this is who I am" quite like a neon-blue, whipped-cream-topped drink that stains your tongue for hours. Kelly Goldsmith, a marketing professor at Vanderbilt, adds that consumers are "not paying for what's in the cup, but what's on the cup," comparing Starbucks to an affordable luxury handbag. So, the $7 you drop on a drink is really for the logo, not the liquid.
Starbucks has leaned into this with limited-time offerings like the Unicorn Frappuccino, which was only available for three days in August but managed to boost foot traffic by 44%, according to Placer.ai. Because nothing drives sales like a drink that looks like a unicorn vomited into a cup.
Other chains are hopping on the cold train. Dunkin' Donuts is experimenting with protein-boosted drinks and teaming up with Kylie Jenner (because who better to sell beverages than someone famous for... being famous?) to promote limited-time drinks. TikTok creator Natalie Ludwig, who has over 500,000 followers, has sampled Dunkin's cold drinks and notes that if the Jenner promotion succeeds, "maybe that younger audience sticks." Fast food giants like McDonald's, Chick-fil-A, and Taco Bell have also launched fruit-based refreshers and other non-caffeine cold drinks to lure the same demographic.
The trend isn't just a US thing. In the UK, Isabella Reeve, a consumer insight director at Worldpanel by Numerator, reports that shoppers under 25 buy more cold drinks than hot when out of the house - over 60% of their purchases are cold, compared to just 30% for those 55 and older. And it's not just a summer habit: over 70% of people buy cold drinks year-round, with over 80% doing so in summer.
Tirtha Dhar, a marketing professor at the University of Guelph, says cold drinks have become a "sweet spot" for Starbucks' bottom line. The "infinite personalisation" through foams, flavours, and proteins are "almost pure profit" for the chain. Indeed, cold drinks have helped revive Starbucks after a stretch of weaker sales, now making up more than 70% of its US beverage sales and central to its turnaround strategy.
So, as the world warms and the ice melts, remember: the next time you order a hot coffee, you're not just drinking a beverage - you're making a statement. And apparently, that statement is "I'm not a member of Gen Z."