Starbucks offers oat milk as a dairy-free option.
Source: Starbucks
Starbucks said Wednesday it will eliminate the surcharge on dairy substitutes, saving some U.S. customers more than 10% on their drinks.
The change comes into effect on November 7 and follows years of pleas from customers to do away with the extra charge, especially as milk alternatives have become increasingly popular. More recently, Starbucks has seen its U.S. sales decline as higher prices deter occasional customers whose wallets have already been stretched by inflation.
“This is just one of many changes we will make to ensure that a visit to Starbucks is worth it every time,” CEO Brian Niccol said in a statement.
Substituting a non-dairy milk is the second most requested customization from customers, after just 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 drinks.
Niccol joined the company in early September after six years as CEO Chipotle. At Starbucks, he is tasked with leading a turnaround to revive the business, especially in its home market. His initial strategic focuses include changing the coffee chain's 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 100 ml of dairy substitute to hot or iced coffee or tea, cold brew and Americano drinks at no additional cost. But other drinks made with milk in the standard recipe, such as lattes, currently have surcharges.
Starbucks first started serving non-dairy milk in 1997 when it added soy milk to its menus. In 2015, coconut milk landed on menus across the country, and almond milk arrived the following year. In 2021, Starbucks locations in the US began using oat milk.
Recently, PETA attacked Starbucks over its non-dairy surcharges, using stunts to draw attention to the issue. 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 venue. 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, claiming the surcharge discriminated against customers with allergies. The company has tried to dismiss the case. According to court documents, her next scheduled court appearance is Nov. 6.
Starbucks declined to comment on the lawsuit, citing the company's policy not to discuss pending litigation.