Starbucks announced on Wednesday that it will reduce the price for dairy alternatives, which will result in certain American consumers saving over 10% on their drinks.
The change, which takes effect on November 7, comes after years of consumer pressure to do away with the additional cost, particularly as milk substitutes have become more and more popular. Starbucks has recently suffered a decline in sales in the United States as its higher costs turn off occasional consumers whose budgets are already strained by inflation.
In a statement, CEO Brian Niccol said, “This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time.”
According to Starbucks, replacing nondairy milk is the second most popular customer personalization, behind adding a shot of espresso.
The company’s holiday menu and the end of the chain’s line of drinks with olive oil infusions are both accompanied by the shift in surcharge pricing.
After serving as Chipotle’s CEO for six years, Niccol joined the firm in early September. He is responsible for spearheading Starbucks’ turnaround in order to revitalize the company, especially in its home market. His initial strategic priorities include adjusting pricing, streamlining menus, and altering the coffee chain’s marketing.
In certain regions, the cost for dairy substitutes can amount to as much as 80 cents per drink. Up to 4 ounces of a dairy substitute can currently be added to hot or iced coffee or tea, cold brew, and Americano drinks at Starbucks without incurring additional fees. However, there are already surcharges for other milk-based beverages that follow the traditional recipe, such lattes.
In 1997, Starbucks introduced soy milk to its menus, marking the beginning of its nondairy milk service. Coconut milk first appeared on menus across the country in 2015, followed by almond milk the following year. Starbucks stores all throughout the United States started utilizing oat milk in 2021.
Using stunts to draw attention to the issue, PETA has recently targeted Starbucks for the nondairy pricing. For instance, two years ago, James Cromwell, an activist and actor best known for his parts in “Babe” and “Succession,” cemented himself to the counter of a place in New York City. PETA promised to halt the campaign when Niccol joined the organization so he could alter the approach.
Three lactose-intolerant women filed a lawsuit against Starbucks in federal court in March, claiming that the surcharge discriminated against allergy sufferers. The business has been attempting to get the case dismissed. According to court documents, the next court hearing is set on November 6.
Citing the company’s policy against discussing ongoing litigation, Starbucks declined to comment on the lawsuit.
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