Photo courtesy of Starbucks
Starbucks Will Stop Charging Extra For Non-Dairy Milk
October 31, 2024
After years of charging customers extra to add non-dairy milk to their hot and iced drinks, Starbucks will cease that practice in early November.
In a press release, the company shared that with the launch of its holiday menu on Nov. 7, Starbucks will no longer charge customers more money for customizing their beverages with a dairy-free option.
The coffee chain revealed that non-dairy milk substitutes are the second-most requested customization of its products. As the new pricing goes into effect, almost half of customers who request either soymilk, oat milk, almond milk, or coconut milk will see a price reduction of more than 10%. The most popular Starbucks customization is an espresso shot.
Brian Niccol, Starbucks chairman and chief executive officer, stated in the release, “Core to the Starbucks Experience is the ability to customize your beverage to make it yours. By removing the extra charge for non-dairy milks we’re embracing all the ways our customers enjoy their Starbucks.”
He continued, “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. This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time.”
Starbucks Announces Disappointing Fourth-Quarter Earnings
The menu shift based more on customers’ wants and needs comes on the heels of the announcement of a fourth-quarter decline in revenue for Starbucks.
The company’s earnings report shows that global comparable store sales fell by 7%, largely due to an 8% drop in comparable transactions. North America and U.S. sales decreased by 6%, impacted by a 10% dip in transactions. International comparable store sales declined by 9%, with a 5% reduction in average ticket size and a 4% drop in transactions, while in China, sales dropped 14% due to an 8% decrease in average tickets and a 6% decline in transactions.
The fourth quarter decline follows an overall year trend in Starbucks’ fiscal downturn. Regarding the 2024 fiscal year’s overall decline, Starbucks’ Chief Financial Officer Rachel Ruggeri commented, “I have seen what Starbucks is capable of when we focus on what we do best. I have confidence in our ability to turn around our business and expect we will return to long-term growth.”
“It is clear we need to fundamentally change our strategy to win back customers. ‘Back to Starbucks’ is that fundamental change,” Niccol stated in the report. “My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back. We have a clear plan and are moving quickly to return Starbucks to growth.”
Starbucks will likely continue to shift its menu offerings to promote a more customer-driven experience into 2025.
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