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July 8, 2025
Why Do We Need a Leap Second?
July 10, 2025Starbucks tells us that it celebrated the Fourth of July with its new, limited time, Firework Frappuccino. But I (and perhaps you) missed it. The limited time was July 1-7 “while supplies last.”
Appropriately the Firework Frappuccino was red, white and blue:
Where are we going? To why we demand limited time drinks.
Limited Time Drinks
Happily, with yesterday July 8 the start date, we will be able to order the Strato Frappuccino from Starbucks. Again, they said availability was limited, “while supplies last.”
Stratos come in three flavors:
In addition, Starbucks introduced free cold foam days between May 7 and 11 to Rewards cardholders and a limited time Iced Horchata Oatmilk Shaken Espresso that has been on the menu since May 20.
It appears also that (“much anticipated”) raspberry syrup was not on the Starbucks menu for two years…until now.
But it too will soon vanish.
Our Bottom Line: Diminishing Marginal Utility
Perhaps an economist told Starbucks to populate its menu with a soon to disappear selection. Her reason? How we perceive that extra gulp.
Given a pile of chocolate chip cookies when we are hungry, the first is delicious and so too is the second one. But then the extra pleasure we get from each subsequent cookie plummets. Or, using economic language, we say that the marginal (defined as extra) utility diminishes.
Similarly, when the Firework Frappuccino hit the menu, a FOMO (fear of missing out) cohort rushed to purchase it. For whatever reason–taste, anticipation, trendiness–our demand curve shifted to the right:
Next however, the excitement subsides and, sooner or later, we buy less extra. Like our chocolate chip cookies, we experience diminishing marginal utility. Every extra Firework Frappuccino tastes less good…
Until next year when we again eagerly await the launch date.
My sources and more: Targeting our diminishing marginal utility, Starbucks emphasized the limited availability of its Firework Frappuccino while People, here and here, described more limited time drinks from Starbucks.
Please note that several of today’s sentences were in a past econlife post.