Starbucks offers oat milk as a dairy-free option.
Source: Starbucks
Starbucks The company said on Wednesday it would eliminate surcharges on dairy alternatives, saving some U.S. customers more than 10% on beverages.
The change, which takes effect on Nov. 7, comes after years of pleas from consumers to have the extra fees removed, especially as milk alternatives have grown in popularity. Starbucks’ sales in the U.S. have slumped recently as its higher prices scare away casual customers whose wallets are already stretched thin by inflation.
“This is just one of many changes we will be making to ensure every visit to Starbucks is worth it,” CEO Brian Niccol said in a statement.
According to Starbucks, the second most requested customization requested by customers is substituting non-dairy milk, behind adding a shot of espresso.
The surcharge price change coincides with the launch of the company’s holiday menu and the discontinuation of the chain’s olive oil beverage line.
Niccol joined the company in early September after six years as CEO Chipotle. At Starbucks, he will be tasked with leading the company’s turnaround and revitalizing its business, particularly in the domestic market. His early strategic priorities included changing the way the coffee chain markets itself, simplifying its menu and fixing pricing.
In some markets, the surcharge for dairy alternatives can be as high as 80 cents per cup. Currently, Starbucks customers can already add up to 4 ounces of dairy alternatives to hot or iced coffee or tea, cold brew coffee and American-style beverages at no extra charge. But other drinks made with milk in standard recipes, such as lattes, currently carry a surcharge.
Starbucks first started serving non-dairy products in 1997, when it added soy milk to its menu. In 2015, coconut milk hit menus nationwide, followed the following year by almond milk. In 2021, Starbucks stores across the United States began using oat milk.
Recently, People for the Ethical Treatment of Animals (PETA) targeted Starbucks with a non-dairy surcharge and used stunts to draw attention. For example, two years ago, actor and activist James Cromwell, known for his roles in Succession and Baby, stick to yourself to the counter at a location in New York City. When Nico 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 had been seeking to have the case dismissed. According to court documents, his next court appearance is Nov. 6.
Starbucks declined to comment on the lawsuit, citing company policy prohibiting discussion of pending litigation.
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