Businesses that sell holiday food products are smart in making good revenue. Having holiday food products help the companies earn good amount of income as the food products are limited. Many people wait all year long until fall to have Starbucks Pumpkin Spice Latte, or McDonalds McRibs or even donuts from Dunkin Donuts. Starbucks changes the design of the cups according to the holiday, which also captures many customers attention. According to Forbes, Starbucks revenue increased by 12% during the holiday season. Also in the last 12 months, Starbucks shares have gone up by 46% and have gone down by 1%, while other businesses have gone by 8%. According to Marketplace, Starbucks has sold about 200 million Pumpkin Spice Latte since 2003. Besides Starbucks, Trader Joe's also sells pumpkin spice food products during the fall. Trader Joe’s sells food items such as pumpkin ice cream, pumpkin ale, pumpkin tea, pumpkin cereal, etc. Trader Joe’s has made a lot of money by selling pumpkin food items. Having holiday food items it beneficial for the store because many people are attracted as the food items are rare or nondurable and only come around in November. According to the Christian Science Monitor, McDonald’s net income has increased from $1.22 billion a year to $1.24 billion a year because of the McRib, and the Caramel Mocha drink. The company headquarters saw the revenue increase by 4%. For McRibs from McDonalds, the shares are up to 40% this year according to CNN Money. As you can see in the graph below that Starbucks gets most of its revenue from the beverages. Also you can see in the graph, the revenue for starbucks has increased over 8 years.
The demand for Starbucks has also increased over the years. Many people are addicted to coffee that they have to go to Starbucks in the morning for there coffee. According to Seeking Alpha, Starbucks has increased the prices for their drinks, but consumers have been the same. If any other food company raised their prices for holiday specials then the demand would still be the same. According to BBC News, Starbucks income has increased 16% this year from last year. According to CFO, Dunkin Donuts revenue increased 5.8% during the holidays. As you can see in the graph below Dunkin Donuts revenue has increased over the past years because of the
holiday donut flavors. All of this shows that having holiday flavors of drinks and food items helps the companies increase their revenue and profit. As I mentioned earlier having rare holiday flavors attracts the customers and also holiday flavors are rare, so many people come and buy those flavors mostly everyday before the company stops selling them. If holiday flavors were sold everyday then the company would not be able to make good revenue and profit as the consumers would be tired of seeing or drinking the same beverage all year around. Therefore it is true that companies that sell holiday food items have a better revenue.
* All products require an annual contract.
Prices do not include sales tax
(New York residents only). “Starbucks: Revenue by Product Type 2017 | Statistic.” Statista, www.statista.com/statistics/219513/starbucks-revenue-by-product-type/.
Gensler, Lauren. “Starbucks Revenue Rises 12% During Strong Holiday Season.” Forbes, Forbes Magazine, 21 Jan. 2016, www.forbes.com/sites/laurengensler/2016/01/21/starbucks-first-quarter-earnings/#5a7a852419c6.
Heller, Matthew. “Dunkin' Donuts Franchise Boost Earns Profits.” CFO, 13 Feb. 2017, ww2.cfo.com/financial-performance/2017/02/dunkin-donuts-brands-profit/.
Images, KAREN BLEIER/AFP/Getty. “Holiday Drinks: A Mix of Science and Clever Marketing.” Marketplace, www.marketplace.org/2014/11/26/business/brought-you/holiday-drinks-mix-science-and-clever-marketing.
“Starbucks Reports Record Annual Profit.” BBC News, BBC, 4 Nov. 2016, www.bbc.com/news/business-37868620.
The return of a cult classic. “The McRib Is Back at McDonald's.” CNNMoney, Cable News Network, money.cnn.com/2017/11/02/investing/mcdonalds-mcrib/index.html.
equity, Growth Simple Qualitative Long/short. “Starbucks: Coffee Prices Don't Matter That Much.” Seeking Alpha, 28 June 2016, seekingalpha.com/article/3984994-starbucks-coffee-prices-matter-much.
fan, If you're a. “Why Pumpkin Spice Lattes and McRibs Aren't Sold Year-Round.” CNNMoney, Cable News Network, money.cnn.com/2017/11/06/news/companies/psl-mcrib-seasonal-items/index.html?iid=ob_article_footer.