Starbucks announced on Wednesday that it will eliminate the surcharge for dairy substitutes, resulting in savings of more than 10% on beverages for some U.S. customers. The company also stated it would seek further insight into the significance of this change in light of the increasing customer demand for plant-based milk, which has been an ongoing concern. In certain markets, the non-dairy fee had reached up to 80 cents per drink.
This consequence represents a revolutionary change in policy on the part of Starbucks regarding the prices of its products, as it is known that the company seeks to combat the issue of classifiable over the pound expenses which is causing a decrease in the number of people foot traffic particularly those who are infrequent shop-goers. With increased costs of living, it is hoped that this non-dairy milk fee will save a customer roughly ten percent on some of the drinks from the us pricing, as the overall prices of beverages are set to drop by this amount.
“Starbucks is committed to ensuring that all our clients have great experiences every time they walk in our stores,” said CEO Brian Niccol. He explained that this is one of the many steps taken toward a more modern version of the brand’s customer experience, which also entails changes in the menus and marketing approaches.
As time has gone on, the consumption of dairy alternatives has increased such that today, the request for nondairy milk toppings at Starbucks is the second most desired after the request for extra espresso. Further, the move fits into the wider scope of the company’s strategies which include meeting the increasing diet diversity and concerns for the environment.
The first entry soy milk on the menu of the company dates back to the year 1997. Other drinks also followed suit, including coconut and almond milk and the most recent addition, oat milk, which was introduced in all Starbucks outlets across the United States in 2021. To date, numerous customers have been forced to incur an extra charge to replace these drinks with the non-dairy plant-based milks for drinks that would otherwise contain milk.
This pricing shift comes ahead of the Starbucks holiday menu which is in addition to the expected removal of its olive oil partnering product line. CEO Niccol replaced Kevin Johnson, who stepped down from the company in September after serving as the Chief Executive Officer of Chipotle Mexican Grill. He has to transform the company at a time when sales growth cannot be realized in the US market.
Legal problems also arise for the company as a result of the milk surcharge. A group of three lactose intolerant women has filed a lawsuit in March based on the assertion that such policy violates the rights of persons with specific diets. The next court date is set for November 6. Starbucks responded by saying that it could not discuss the lawsuit still being processed through the courts.
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