Starbucks will eliminate the additional charge for customers opting for nondairy milk in their beverages, starting November 7, coinciding with the launch of its holiday menu. This adjustment, applicable at over 18,000 locations across the U.S. and Canada, allows patrons to substitute cow’s milk with oat, almond, soy, or coconut milk without incurring extra costs. The decision, announced by CEO Brian Niccol, acknowledges the high demand for such customizations, which rank second only to additional espresso shots.
Starbucks has recently experienced declining sales, attributed in part to rising prices, prompting the company to reassess its strategy. Despite the seasonal release of the popular Pumpkin Spice Latte, U.S. store traffic has not significantly increased. The company has suspended its fiscal guidance for 2025 while contemplating strategic adjustments to address these challenges. Niccol, who joined Starbucks from Chipotle at a significant expense, faces pressure to either justify the brand’s premium pricing or pivot towards a more mainstream approach.
Niccol has proposed a “Back to Starbucks” strategy, focusing on enhancing the café experience by emphasizing personalized service and high-quality coffee over more industrialized, high-margin products like energy drinks. He reiterated his commitment to renewing Starbucks’ image as a welcoming coffeehouse, with the removal of the nondairy milk surcharge being part of this initiative.
The change has been met with approval from PETA, which campaigned for five years against what was dubbed the “vegan tax.” The organization, with support from over 160,000 individuals including actor James Cromwell, views this development as a positive step for animal welfare and for customers who prefer nondairy options. Starbucks’ representative did not comment on whether international locations would adopt similar policies.
