Starbucks offers oat milk as a dairy-free option.
Source: Starbucks
starbucks said Wednesday it will eliminate the surcharge on dairy substitutes, saving some American customers more than 10% on their drinks.
The change takes effect Nov. 7 and follows years of pleas from customers to eliminate the extra fee, especially as milk alternatives have become more popular. More recently, Starbucks has seen its U.S. sales decline as its higher prices drive away casual customers whose wallets have already been strained by inflation.
“This is just one of the many changes we will make to ensure a visit to Starbucks is worth it every time,” CEO Brian Niccol said in a statement.
According to Starbucks, substituting a non-dairy milk is the second most requested customization by customers, after just adding a shot of espresso.
The change in its premium price coincides with the launch of the company's holiday menu, as well as the discontinuation of the chain's line of olive oil-infused beverages.
Niccol joined the company in early September after six years as CEO of chipotle. At Starbucks, you are tasked with leading a change to revitalize your business, particularly in your home market. His first strategic focuses include changing the coffee chain's marketing, simplifying menus and setting prices.
Surcharges for dairy alternatives can reach up to 80 cents per drink in some markets. Currently, Starbucks customers can now add up to 4 ounces of a dairy substitute at no additional cost to hot or iced coffee or tea, cold brew, and American beverages. But other drinks made with milk in the standard recipe, such as latte, currently have surcharges.
Starbucks first began serving plant-based milk in 1997, when it added soy milk to menus. In 2015, coconut milk hit menus across the country, and the following year, almond milk arrived. In 2021, Starbucks locations across the US began using oat milk.
Recently, PETA has taken aim at Starbucks over non-dairy surcharges, resorting to stunts to draw attention to the cause. For example, two years ago, actor and activist James Cromwell, known for his roles in “Succession” and “Babe,” glued himself to the counter of a venue in New York City. When Niccol joined the company, PETA said it would pause the campaign to give him time to change strategy.
In March, three lactose-intolerant women sued Starbucks in federal court, alleging that the surcharge discriminated against customers with allergies. The company has been trying to dismiss the case. The next scheduled court appearance is Nov. 6, according to court documents.
Starbucks declined to comment on the lawsuit, citing the company's policy of not discussing pending litigation.
