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Starbucks will no longer charge extra for non-dairy milksStarbucks will no longer charge extra for non-dairy milks

The coffee chain is removing the extra charge for soy milk, oat milk, almond milk, and coconut milk starting Nov. 7

Joanna Fantozzi, Senior Editor

October 30, 2024

2 Min Read
A Starbucks barista holding a cup
Starbucks announced this news in conjunction with the release of its fourth-quarter earnings.Starbucks

Starbucks will be removing the extra charge for non-dairy milks, including soy milk, oat milk, almond milk, and coconut milk starting Nov. 7, the company announced in conjunction with the release of its fourth quarter earnings.

Vegan activists have protested the company’s extra charge for non-dairy milks for years. At the last company shareholders meeting, Starbucks shareholders declined to create a report to reconsider non-dairy-based milk pricing.

Removing this upcharge of 70-90 cents on average has been one of the top requested changes from customers, and according to Starbucks, substituting for non-dairy milk is the second-most-common substitution, behind only adding a shot of espresso.

“Core to the Starbucks Experience is the ability to customize your beverage to make it yours,” CEO Brian Niccol said in a statement. “By removing the extra charge for non-dairy milks, we’re embracing all the ways our customers enjoy their Starbucks.”

The Seattle-based coffee chain noted that when this new menu pricing rule goes into effect, almost half of Starbucks customers who pay to modify their drinks will see their drink costs go down by 10%. The change is part of Niccol’s “Back to Starbucks” plan, which also includes menu simplification and focusing on “to-stay” customers  instead of just mobile order and pickups. Other recent changes under Niccol’s leadership include discontinuing the Oleato, phasing out the Princi bakery partnership, and ditching the discounting strategy.

Related:Starbucks announces the nationwide release of oat milk and other nondairy beverages

“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 continued. “This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time.”

Starbucks did not yet elaborate on how removing this extra charge could potentially impact the company’s bottom line.

As reported in its preliminary results, Starbucks saw a 7% global same-store sales decline for the fourth quarter ended Sept 29, driven by an 8% decline in traffic. In the U.S., same-store sales slid 6%, driven by a 10% decline in traffic. Negative traffic trends were partially offset by increased menu prices. Net revenues declined 3% to $9.1 billion. Net income declined 8.8% to $3.8 billion or $3.31 earnings per share, as compared with $3.6 billion or $3.58 earnings per share the same quarter the year prior.

Starbucks opened 722 net new stores in Q4, ending the period with 40,199 stores portfolio-wide.

Related:Starbucks expands vegan selections with new oat milk, almond milk and coconut milk signature drinks

Contact Joanna at [email protected]

 

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About the Author

Joanna Fantozzi

Senior Editor

Joanna Fantozzi is a Senior Editor for Nation’s Restaurant News and Restaurant Hospitality. She has more than seven years of experience writing about the restaurant and hospitality industry. Her editorial coverage ranges from profiles of independent restaurants around the country to breaking news and insights into some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s.  

Joanna holds a bachelor’s degree in English literature and creative writing from The College of New Jersey and a master’s degree in arts and culture journalism from the Craig Newmark Graduate School of Journalism at CUNY. Prior to joining Informa’s Restaurants and Food Group in 2018, she was a freelance food, culture, and lifestyle writer, and has previously held editorial positions at Insider (formerly known as Business Insider) and The Daily Meal. Joanna’s work can also be found in The New York Times, Forbes, Vice, The New York Daily News, and Parents Magazine. 

Her areas of expertise include restaurant industry news, restaurant operator solutions and innovations, and political/cultural issues.

Joanna Fantozzi has been a moderator and event facilitator at both Informa’s MUFSO and Restaurants Rise industry events. 

Joanna Fantozzi’s experience:

Senior Editor, Informa Restaurant & Food Group (August 2021-present)

Associate Editor, Informa Restaurant & Food Group (July 2019-August 2021)

Assistant Editor, Informa Restaurant & Food Group (Oct. 2018-July 2019)

Freelance Food & Lifestyle Reporter (Feb. 2018-Oct. 2018)

Food & Lifestyle Reporter, Insider (June 2017-Feb. 2018)

News Editor, The Daily Meal (Jan. 2014- June 2017)

Staff Reporter, Straus News (Jan. 2013-Dec. 2013)

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