What does starbucks wireless charging have to do with the milk fee change?
Starbucks will stop charging extra for dairy alternatives at US and Canadian stores from November 7, a change that can save customers more than 10% on drinks. The fee had reached up to 80 cents per cup for drinks like lattes that use milk as the standard recipe. New CEO Brian Niccol called the move part of making orders simpler.
The company has offered soy, coconut, almond and oat milk since 1997, but only free swaps up to 4 ounces in hot coffee, iced coffee, tea, cold brew and Americano. Lactose intolerance affects over 60% of Asian populations versus under 30% among white Europeans. The shift is expected to push other shops to review their own non-dairy charges.
Starbucks recently announced that, starting November 7, stores in the United States and Canada will no longer charge extra for dairy alternatives. This adjustment is expected to save North American consumers more than 10% on their beverage spending, and it is also one of the important reforms after new CEO Brian Niccol took office. Since 1997, Starbucks has gradually introduced soy milk, coconut milk, almond milk, and oat milk, but previously customers had to pay a surcharge of up to 80 cents to switch to plant-based milk, which sparked consumer dissatisfaction and even lawsuits. Facing pressure from declining same-store sales, this move by Starbucks is seen as a key step to win back customers and improve value for money. Domestically, Starbucks has always charged no fee for switching to soy milk, oat milk, and almond milk. Front Street Coffee believes that this trend will encourage more coffee shops to pay attention to the needs of lactose-intolerant groups.
Starbucks announced on Wednesday that, starting November 7, its stores in the United States and Canada will stop charging a surcharge for dairy alternatives. This adjustment is expected to reduce North American consumers' spending on beverages by more than 10%.
This is one of several changes introduced by Starbucks' newly appointed chief executive Brian Niccol after he took over in September. He said of this: "By removing the extra charge for non-dairy options, customers can enjoy any beverage however they like."
At present, Starbucks customers can already add up to 4 ounces of dairy alternatives for free to hot coffee, iced coffee, tea, cold brew, and Americano drinks. However, for drinks such as lattes that use milk as the standard recipe, switching to plant-based milk still requires an additional fee.
As everyone knows, lattes and milk coffees need milk to steam milk foam. However, many consumers have to choose dairy alternatives because of lactose intolerance. In some markets, this substitution surcharge can be as high as 80 cents per cup.
It is understood that lactose intolerance is a common global issue, and its incidence varies by ethnicity and region. Among white Europeans and their descendants, the proportion of lactase deficiency is usually below 30%, while among Asian populations it exceeds 60%, and in some areas it is even as high as 100%.
Starbucks began offering dairy alternatives in 1997, initially adding soy milk to the menu. In 2015, coconut milk was introduced in U.S. stores, and almond milk followed the next year. In 2021, oat milk began to be used in Starbucks stores across the United States.
Against the backdrop of the growing popularity of dairy alternatives, Starbucks once released a ranking of consumer customization requests, in which substituting non-dairy options for milk ranked second, behind only adding an extra shot of espresso.
For years, consumers have been calling on Starbucks to remove the extra charge for dairy alternatives. In March 2024, three consumers in California even took Starbucks to court, accusing it of charging extra when switching milk to plant-based milk in drinks such as lattes and Frappuccinos, arguing that this practice discriminated against people with lactose intolerance and violated the Civil Rights Act, and seeking $5 million in damages.
Some analysts believe that Starbucks' announcement to cancel this charge is intended to please consumers amid declining sales, thereby rescuing continuously falling store traffic. Starbucks' previously released financial report showed that in the fourth quarter of fiscal year 2024, ending September 29, its same-store sales fell 7% year over year, twice the decline generally expected by analysts and also the largest quarterly drop in four years.
It is reported that this adjustment applies to soy milk, oat milk, almond milk, and coconut milk, bringing the price of non-dairy drinks in line with that of dairy drinks. Previously, this policy had already been implemented in several countries, including the United Kingdom, Germany, and France.
Brian Niccol said in a statement: "This is just one of the many changes we will make to ensure customers feel they are getting good value every time they visit Starbucks."
It is understood that the dairy alternatives mainly used by Starbucks in China include soy milk, oat milk, and almond milk. In addition, Starbucks has never charged domestic consumers extra for requests to switch to dairy alternatives.
Image source: Internet
The above content is compiled by CoffeeHunters, a coffee news website.
