Starbucks offers oat milk as a dairy-free option.
Source: Starbucks
Starbucks It said Wednesday it would remove surcharges on dairy alternatives, saving some U.S. customers more than 10% on their drinks.
The change takes effect on November 7 and comes after years of customers pleading to eliminate the surcharge, especially with the growing popularity of milk alternatives. More recently, Starbucks has seen its U.S. sales decline, as its price hikes have scared off casual customers whose wallets are already empty due to inflation.
“This is just one of many changes we will make to make sure visiting Starbucks is worth it every time,” CEO Brian Nicol said in a statement.
Substituting non-dairy milk is the second most requested customization from customers, behind only adding a shot of espresso, according to Starbucks.
The change in surcharge prices coincides with the launch of the company's holiday menu, as well as the discontinuation of the chain's line of olive oil-infused drinks.
Nicol joined the company in early September after six years as CEO Chipotle. At Starbucks, he was tasked with leading a transformation to revitalize its business, especially in its home market. His early strategic interests included changing coffee chain marketing, simplifying menus and setting prices.
Surcharges for dairy alternatives can be as high as 80 cents per drink in some markets. Currently, Starbucks customers can add up to 4 ounces of dairy alternative at no additional charge to their coffee, hot or iced tea, cold drinks and Americano drinks. But other drinks made with milk in the standard recipe, such as lattes, are currently subject to additional fees.
Starbucks first began offering non-dairy milk in 1997, when it added soy milk to its menus. In 2015, coconut milk hit menus across the country, followed by almond milk the following year. In 2021, Starbucks locations across the United States began using oat milk.
Recently, PETA targeted Starbucks with additional fees on non-dairy products, relying on stunts to draw attention to the issue. For example, two years ago, actor and activist James Cromwell, known for his roles in the films “Succession” and “Babe,” glued himself to the table of a location in New York City. When Nicol 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 extra charge discriminated against customers with allergies. The company seeks to dismiss this case. Her next scheduled court appearance is Nov. 6, according to court filings.
Starbucks declined to comment on the lawsuit, citing company policy against discussing pending lawsuits.
