Starbucks drops long-standing extra fee for nondairy milk
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Starbucks will no longer charge for customizing drinks with nondairy milks starting Nov. 7. Photo: Courtesy of Starbucks
Starbucks is making a big change and removing its long-standing nondairy milk surcharge starting Nov. 7, the same day its holiday menu launches.
Why it matters: The coffee giant stands to lose money from cutting the fee. But the move is expected to foster goodwill with consumers it is trying to win back.
- Substituting nondairy milk in a handcrafted beverage is the "second most requested customization" behind adding a shot of espresso to drinks, Starbucks said in a statement.
- The change is for company-owned and operated stores in the U.S. and Canada.
The big picture: Starbucks' new CEO Brian Niccol, who came from Chipotle, started in his role in September and has been making big changes in an effort to turn the company around.
- He outlined a plan to bring Starbucks back to its roots, acknowledging that the chain has lost its way.
- "This is just one of many changes we'll make to ensure a visit to Starbucks is worth it every time," Niccol said Wednesday.
Between the lines: This week Starbucks announced that it's getting rid of its Oleato olive oil drinks in early November as it moves to simplify the menu.
- The chain has also been cutting back discounts in recent weeks since Niccol took over, the Wall Street Journal reports.
Starbucks price cut
Zoom in: Starbucks says almost half of its U.S. customers who pay to modify drinks at company-operated stores will see a price reduction of more than 10%.
- Nondairy milk includes soy milk, oat milk, almond milk and coconut milk.
- The current cost to customize a beverage with nondairy milk ranges from 70 to 80 cents, depending on the market, a Starbucks spokesperson confirmed to Axios.
What they're saying: "By removing the extra charge for non-dairy milks we're embracing all the ways our customers enjoy their Starbucks," Niccol said in a statement.
- "I made a commitment that we'd get back to Starbucks, focusing on what has always set Starbucks apart — a welcoming coffeehouse where people gather and we serve the finest coffee handcrafted by our skilled baristas," Niccol said.
Nondairy milk fees are common
State of play: Starbucks has not been the only coffee chain charging for milk alternatives.
- Dunkin', Krispy Kreme, Peet's Coffee, Coffee Bean & Tea Leaf and Tim Hortons also have surcharges.
- Caribou Coffee has offered its loyalty members nondairy milk for no additional charge since 2023 for app orders.
Starbucks and Dunkin' holiday drink release dates
What's next: Starbucks holiday drinks launch on Nov. 7, five days later than last year.
- Details on the menu and if Red Cup Day will return this year have not yet been revealed.
Dunkin' releases its holiday drink menu Nov. 1, the same day as in 2023. The menu features a new Holiday Cookie Signature Latte and its first Almond Croissant, the company said.
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