Starbucks offers oat milk as a dairy-free option.
Source: Starbucks
Starbucks said Wednesday that it will remove the surcharge for dairy substitutes, saving some U.S. customers more than 10% on their drinks.
The change goes into effect Nov. 7 and follows years of pleading from customers to eliminate the extra fee, especially as milk alternatives have grown more popular. More recently, Starbucks has seen its U.S. sales fall as its higher prices scare away occasional customers whose wallets have already been stretched by inflation.
“This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time,” CEO Brian Niccol said in a statement.
Substituting a nondairy milk is the second-most requested customization from customers, trailing only adding a shot of espresso, according to Starbucks.
The change to its surcharge pricing 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.
Niccol joined the company in early September after six years as CEO of Chipotle. At Starbucks, he is tasked with leading a turnaround to reinvigorate its business, particularly in its home market. His early strategic focuses include changing the coffee chain’s marketing, simplifying menus and fixing pricing.
The surcharges for dairy alternatives can reach up to 80 cents per drink in some markets. Currently, Starbucks customers can already add up to 4 ounces of a dairy substitute at no extra charge to hot or iced brewed coffee or tea, cold brew and Americano drinks. But other drinks made with milk in the standard recipe, such as lattes, currently have surcharges.
Starbucks first started serving nondairy milk in 1997, when it added soy milk to menus. In 2015, coconut milk landed on menus nationwide, and then came almond milk the following year. In 2021, Starbucks locations across the U.S. began using oat milk.
Recently, PETA has targeted Starbucks for the nondairy surcharges, relying on stunts to call 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 New York City location. When Niccol joined the company, PETA said it would pause the campaign to give him time to change the 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 seeking to dismiss the case. The next scheduled court appearance is Nov. 6, according to court filings.
Starbucks declined to comment on the suit, citing the company’s policy against discussing pending litigation.