Starbucks Eliminates Dairy Alternative Surcharge in Bid to Boost Sales and Customer Satisfaction

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ICARO Media Group
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30/10/2024 21h52

**Starbucks Abolishes Dairy Alternative Surcharge Amid Declining Sales**

Starting November 7, Starbucks will eliminate the extra charge for dairy substitutes in a move that could cut some U.S. customers' drink costs by over 10%. This decision follows constant appeals from customers over the years, especially as milk alternatives have surged in popularity. Recently, Starbucks has seen a decline in U.S. sales, partly due to its higher prices deterring occasional customers already strained by inflation.

CEO Brian Niccol, who took the helm in September after a six-year stint as CEO of Chipotle, announced this change as part of a broader strategy to revitalize the brand's appeal. "This is just one of many changes we'll make to ensure a visit to Starbucks is worth it every time," Niccol stated. The adjustment in surcharge pricing coincides with the launch of the company’s holiday menu and the discontinuation of its olive oil-infused drinks.

Currently, Starbucks allows customers to add up to 4 ounces of a dairy substitute at no extra cost to certain beverages. However, there are surcharges on other drinks made with milk in the standard recipe, ranging up to 80 cents in some markets. These additional fees have been a point of contention for many, including organizations like PETA, which has campaigned against the charges, and even legal action from lactose-intolerant individuals claiming discrimination.

Starbucks first introduced nondairy milk options in 1997 with soy milk, followed by coconut milk in 2015, almond milk in 2016, and oat milk in 2021. The move to remove the extra fee aims to simplify the customer experience and align with the growing demand for these alternatives.

This policy change also comes at a crucial time as Starbucks focuses on revamping its marketing strategies, streamlining its menu, and addressing pricing concerns under Niccol's leadership. The decision to end the dairy alternative surcharge is a significant step towards making Starbucks a more inclusive and economically friendly choice for all of its patrons.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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