On Wednesday, Starbucks stated that they would eliminate the extra fee for dairy substitutes such as almond milk, soy milk and oat milk, which would cut the cost down by more than 10% for many U.S. customers.
The change will be in effect on Nov.7 after years of customer petitions to remove the extra fee, especially since milk alternatives have gained more popularity. Recently, Starbucks sales in the U.S. went down as the high price of drinks drove away any potential customers who were already struggling with inflation.
Starbucks CEO Brian Niccol gave a statement that this will be one of many changes that will ensure its customers a great experience on every visit to Starbucks.
According to Starbucks, non-dairy substitutes are the second most requested drink customization from customers, the first being an extra shot of espresso.
The removal of the extra fee coincides with the launch of Starbucks’s new holiday menu, along with the discontinuation of olive oil-infused drinks.
Niccol took the position of CEO in early September this year after spending six years at the helm of Chipotle as a CEO. As Starbucks is witnessing a slowdown in sales, the new CEO is tasked to revitalize the business, in which he took it into action by focusing on marketing strategy, menus simplification and price adjustment.
Cost of additional milk alternatives could go up to 80 cents per drink in some markets. The global coffee chain offers 4 ounces of dairy substitute at the present without any extra surcharge to customers in the U.S. who order hot or iced brewed coffee or tea. However, menus with milk as a standard recipe such as latte are eligible for these charges.
Starbucks began offering non-dairy milk in 1997 when soy milk was added to menus. In 2015, coconut milk was added, and almond milk in the following year. In 2021, Starbucks in the U.S. began introducing oat milk to its menus.
Recently, Starbucks was targeted by PETA for charging for dairy substitutes, relying on public stunts to call attention to the issue. When Niccol became Starbucks’ new CEO, PETA said it would pause the campaign to give a chance to change the company strategy.
Three lactose-intolerant women sued Starbucks in March, claiming that the extra charge for dairy substitutions is discrimination toward customers with allergies. The next court appearance is scheduled to be on November 6 as the company continues to dismiss the case.
