Starbucks offers oat milk as a dairy-free option.
Source: Starbucks
Starbucks announced Wednesday that it is eliminating the surcharge on milk substitutes, saving some U.S. customers more than 10% on their drinks.
The change takes effect on November 7 and follows years of requests from customers to remove the additional fee, particularly as milk alternatives become increasingly popular. More recently, Starbucks has seen sales decline in 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 a statement.
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 company's holiday menu as well as the discontinuation of the chain's line of olive oil-infused beverages.
Niccol joined the company in early September after six years as CEO Chipotle. At Starbucks, he is tasked with leading a turnaround to revitalize the business, particularly in the home market. His early strategic focuses included changing the coffee chain's marketing, simplifying menus and fixing prices.
The surcharge for milk alternatives can be up to 80 cents per drink in some markets. Currently, Starbucks customers can already add up to 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 standard recipe, such as 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 following year almond milk hit the market. In 2021, Starbucks stores in the United States began using oat milk.
Recently, PETA has targeted Starbucks over its non-dairy surcharges, relying on stunts to draw attention to the issue. Two years ago, for example, actor and activist James Cromwell, known for his roles in “Succession” and “Babe,” was glued to the counter of a New York bar. When Niccol 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, saying the surcharge discriminated against customers with allergies. The company has tried to dismiss the lawsuit. The next scheduled court date is Nov. 6, according to court records.
Starbucks declined to comment on the lawsuit, citing the company's policy of not discussing pending litigation.
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