Starbucks Removing Its Extra Charge For Non-Dairy Milk Substitutes

Topline

Starbucks customers who prefer non-dairy milk will soon start saving a bit of change when ordering from the coffeehouse chain, as Starbucks announced Wednesday it will remove its extra charge for dairy substitutes next week.

Key Facts

The change will go into effect Nov. 7 alongside Starbucks’ holiday launch, removing extra charges for people customizing their drinks with non-dairy alternatives like soy milk, oat milk, almond milk and coconut milk.

Starbucks said some of its customers will save more than 10% with the new change, adding that substitutions for non-dairy milk are the second-most requested customization option used by customers.

The extra charge for non-dairy alternatives can add up to 80 cents per drink in some markets, according to CNBC, which noted Starbucks' higher prices have stopped some customers from coming into their stores.

Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.

Surprising Fact

Actor and activist James Cromwell, known for his roles in “Succession” and “Babe,” once protested Starbucks’ non-dairy surcharges, gluing his hand to a Starbucks counter and wearing a "Free the Animals" shirt while verbally denouncing the extra charges.

Tangent

Starbucks’ stock, which closed at $97.32 per share Wednesday, is up nearly 4% since the start of the year despite a summer slump that brought its price as low as $72.50.

Key Background

The removal of the extra charge comes after Starbucks announced North American same-store sales fell 6% in the quarter ending this September, while global same-store sales fell 7%. Brian Niccol, who recently took over as the chain’s CEO and has been trusted with fixing Starbucks’ decline in traffic and sales, is seeking to win back customers. He told investors Wednesday the company is setting a goal for customers to receive their orders in four minutes or less. Alongside that change, brewed coffee will soon be given to customers at the register and customized by the customers at condiment stations Starbucks will reinstall into its locations. Starbucks also announced Wednesday it would not increase prices in the 2025 fiscal year.

Further Reading

Starbucks will stop charging extra for dairy substitutes (CNBC)

Somewhere Amid the Frappuccinos, Fans Say Starbucks Lost Something (New York Times)