No chain has more been disrupted by the sudden change in morning routines than Starbucks. US sales in the past quarter at stores open at least a year dropped 9%. It improved in September, when sales at stores open at least a year decreased just 4% because of the return of Pumpkin Spice Lattes.
However, the chain is optimistic for a recovery next year when it expects sales at stores open at least a year to jump between 17% and 22%. Suburban and drive-thru locations are recovering faster than city locations.
Loser: Taco Bell
Breakfast sales, which historically made up 6% of sales at Taco Bell, fell to 4% for the third quarter. That’s the result of a significant chunk of its US restaurants stopped selling it during the pandemic.
Yum! Brands CEO David Gibbs said on its October 30 earnings call that it’s “committed to breakfast long term and expect to be back into that with all stores as time goes on.”
Despite that, quarterly sales at stores open at least a year grew 3%.
Loser: Tim Hortons and Burger King
Both chains, owned by Restaurant Brands International, had a dismal third quarter. At Burger King, US sales at stores open at least a year fell 8%, partly because of its breakfast offerings.