Starbucks announced Wednesday that it’s eliminating the surcharge on milk substitutes, saving some U.S. customers greater than 10% on their drinks.
The change takes effect on November 7 and follows years of requests from customers to remove the extra fee, particularly as milk alternatives change into increasingly popular. More recently, Starbucks has seen sales decline within the U.S. as higher prices deterred casual customers whose wallets were already stretched by inflation.
“This is just one of many changes we will make to ensure a visit to Starbucks is worth it every time,” CEO Brian Niccol said in an announcement.
According to Starbucks, substitution with non-dairy milk is the second most requested customization by customers, followed by just the addition of a shot of espresso.
The change in surcharge pricing coincides with the launch of the corporate's holiday menu in addition to the discontinuation of the chain's line of olive oil-infused beverages.
Niccol joined the corporate in early September after six years as CEO Chipotle. At Starbucks, he’s tasked with leading a turnaround to revitalize the business, particularly in the house market. His early strategic focuses included changing the coffee chain's marketing, simplifying menus and fixing prices.
The surcharge for milk alternatives might be as much as 80 cents per drink in some markets. Currently, Starbucks customers can already add as much as 4 ounces of a milk substitute to hot or iced coffee or tea, cold brew and Americano drinks at no additional charge. But there are also currently surcharges for other milk drinks in the usual recipe, akin to latte macchiato.
Starbucks began serving dairy-free milk in 1997 when it added soy milk to its menus. In 2015, coconut milk hit menus across the country and the next yr almond milk hit the market. In 2021, Starbucks stores within the United States began using oat milk.
Recently, PETA has targeted Starbucks over its non-dairy surcharges, counting on stunts to attract attention to the problem. Two years ago, for instance, the actor and activist James Cromwell, known for his roles in “Succession” and “Babe,” stuck himself on the counter at a location in New York City. When Niccol joined the corporate, PETA said it might pause the campaign to provide him time to vary strategy.
In March, three lactose-intolerant women sued Starbucks in federal court, saying the surcharge discriminated against customers with allergies. The company has tried to dismiss the lawsuit. The next scheduled court date is Nov. 6, in accordance with court records.
Starbucks declined to comment on the lawsuit, citing the corporate's policy of not discussing pending litigation.
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