Starbucks will eliminate additional fees for dairy alternatives.
- After years of customers' pleading, Starbucks will no longer charge extra for dairy alternatives.
- Some of the occasional customers of the coffee giant have been deterred by its recent price hikes.
- The surcharge can reach up to 80 cents in some markets.
On Wednesday, it was announced that the surcharge for dairy substitutes would be removed, resulting in U.S. customers saving more than 10% on their drinks.
Starbucks has announced that it will eliminate the extra fee for milk alternatives in the US starting November 7th, following years of customer requests. This change comes as milk alternatives have become increasingly popular and as recent studies have shown that higher prices have been scaring away occasional customers whose wallets have already been stretched by inflation.
CEO Brian Niccol stated that this is just one of several changes we will implement to guarantee that every visit to Starbucks is worthwhile.
According to Starbucks, the second most requested customization from customers is substituting a nondairy milk, with adding a shot of espresso being the most requested.
The launch of the company's holiday menu and the discontinuation of its olive oil-infused drinks coincide with a change in surcharge pricing.
Niccol, who has six years of experience as CEO, joined the company in early September. At Starbucks, he is responsible for leading a turnaround to revitalize its business, particularly in its home market. His initial priorities include revamping the coffee chain's marketing, streamlining menus, and adjusting pricing.
In some markets, the cost of dairy alternatives can be as high as 80 cents per drink. While Starbucks customers can add up to 4 ounces of a dairy substitute to hot or iced brewed coffee or tea, cold brew and Americano drinks at no additional charge, other milk-based drinks, such as lattes, come with a surcharge.
Starbucks introduced soy milk to its menus in 1997, followed by coconut milk in 2015 and almond milk in 2016. In 2021, oat milk was added to menus across the U.S.
PETA has been protesting Starbucks' nondairy surcharges by using stunts to draw attention to the issue. One such stunt involved actor and activist James Cromwell gluing himself to the counter of a New York City location two years ago. PETA paused its campaign against Starbucks when Niccol joined the company, giving him time to change the strategy.
In March, three women with lactose intolerance filed a lawsuit against Starbucks in federal court, claiming that the surcharge was discriminatory towards customers with allergies. The company has been attempting to dismiss the case. The next scheduled court appearance is on November 6, as per court filings.
Starbucks refused to comment on the lawsuit, stating their policy of not discussing ongoing legal proceedings.
Business News
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