Starting November 7, Starbucks will eliminate the additional fee for non-dairy milk options across its US locations, a change the company announced as part of its holiday menu launch.
The move, which follows years of customer requests, will reduce costs for nearly half of US customers who customize their drinks with dairy alternatives. In some locations, the surcharge has been as high as 80 cents per drink, so the change is expected to reduce the price of modified beverages by up to 10%.
CEO Brian Niccol, who joined Starbucks in September, said the decision aligns with the brand’s goal of making Starbucks more inviting and affordable for customers.
“Core to the Starbucks Experience is the ability to customize your beverage to make it yours,” Niccol stated.
He described the change as one of many aimed at enhancing the Starbucks experience.
Starbucks first introduced non-dairy milk options in 1997 with soy milk and expanded offerings over the years to include almond, coconut, and oat milk. Non-dairy milk substitutions are now the second most popular customization requested, following only espresso shots. However, drinks such as lattes and cappuccinos, which include milk by default, have typically come with an added charge for non-dairy alternatives.
Customer feedback on Starbucks’ pricing has intensified recently, with some claiming that high prices are deterring occasional customers, particularly as inflation pressures budgets. Advocacy groups like PETA have also been vocal, staging protests to call attention to the extra fees. Recently, the organization decided to pause its campaign as a gesture of goodwill when Niccol took on his new role.
The decision also comes as Starbucks faces a federal lawsuit filed by three lactose-intolerant customers, who allege that the surcharge discriminates against those with allergies or dietary restrictions. The company has declined to comment on the lawsuit due to its policy on pending litigation, but a court date is scheduled for November 6.
Niccol’s early initiatives as CEO also include reworking Starbucks’ marketing strategy, simplifying the menu, and adjusting pricing.
With input from CNBC and Starbucks Corporation.
