Starbucks to Stop Charging Extra for Nondairy Milk, Beginning November

Starbucks cups are pictured on a counter in the Manhattan borough of New York City on Feb. 16, 2022. Carlo Allegri/Reuters

Starbucks will no longer charge an additional fee to customers who wish to customize their drinks with nondairy milk options, the coffee chain announced on Oct. 30.

The additional charges will be removed as of Nov. 7; the same day the company is launching its holiday menu, Starbucks said in a statement.

Customer requests for non-dairy alternatives—whether it be soymilk, oat milk, almond milk or coconut milk—is the second most requested customization at the chain, second only to adding a shot of espresso, the Seattle-headquartered company said.

When the price change goes into effect next week, nearly half of Starbucks’s customers in the United States who currently pay for non-dairy substitutes in their beverage will save more than 10 percent on their orders, the coffee chain said.

“Core to the Starbucks Experience is the ability to customize your beverage to make it yours,” said Brian Niccol, Starbucks chairman and chief executive officer. “By removing the extra charge for non-dairy milks we’re embracing all the ways our customers enjoy their Starbucks.”

The latest change is one of several implemented at Starbucks in recent months under the new CEO after he took over the company in September following two quarters of declining sales, increased competition, and operational challenges.

In an open letter to employees penned shortly after stepping into the role, Niccol acknowledged the chain was battling with a growing wave of dissatisfaction among customers amid inconsistent products, an “overwhelming” menu, and increased waiting times.

Niccol, who previously served as Chipotle CEO, also unveiled a plan to revitalize the company’s U.S. operations, including through significant investments in technology and upgrades to Starbucks’s mobile ordering platform and supply chain.

The new Starbucks CEO said that while the focus will initially be on U.S. stores, the revamp will later extend to international markets, where he sees “enormous” growth potential.

Starbucks Sales Slump

“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,” Niccol said in a statement accompanying the latest announcement.

The announcement was made on the same day that Starbucks reported a third straight quarter of declining sales and customer visits.

Starbucks posted a 7 percent drop in global comparable sales for the fourth quarter, while North America and U.S. comparable store sales declined 6 percent and international comparable store sales were down 9 percent.

Meanwhile, the company’s net income fell to $909.3 million, or 80 cents per share, from $1.22 billion, or $1.06 per share, a year earlier in the fourth quarter ended Sept 29.

In a statement alongside the latest earnings, Niccol said Starbucks needs to “fundamentally change” its strategy to win back customers.

“My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back,” Niccol said. “We have a clear plan and are moving quickly to return Starbucks to growth.”

Despite the declines, Starbucks’ stock closed at $97.32 per share after the latest announcement, and is up nearly 4 percent so far this year.

Tom Ozimek and Reuters contributed to this report.