Starbucks has announced that it will no longer charge an extra fee for customizing beverages with a non-dairy milk, including soymilk, oatmilk, almondmilk, and coconutmilk, starting November 7th.
Why Is Starbucks Removing the Extra Charge for Non-Dairy Milks?
Starbucks is responding to years of advocacy from vegan activists who have protested against the company’s additional charges for non-dairy milks. At the recent shareholders meeting, a proposal to reconsider the pricing of non-dairy options was declined, prompting the company to reevaluate its approach.
In a statement, CEO Brian Niccol emphasized, “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.” This decision not only reflects a commitment to customer preferences but also aligns with a growing trend towards sustainability and inclusivity in the beverage industry.
What Does This Mean for Your Wallet?
The removal of the upcharge for non-dairy milks, typically ranging from 70 to 90 cents, has been one of the most requested changes by customers. According to Starbucks, substituting non-dairy milk is the second-most common modification to drinks, following only the addition of an extra shot of espresso.
When this new pricing policy is implemented, nearly half of the customers who currently pay to customize their beverages can expect to see a reduction in their drink costs by approximately 10%. This change is a key component of CEO Brian Niccol’s “Back to Starbucks” initiative, which aims to simplify the menu and prioritize the in-store experience for customers rather than focusing solely on mobile orders and pickups.
Under Niccol’s leadership, other recent adjustments have included discontinuing the Oleato line, phasing out the Princi bakery partnership, and moving away from aggressive discounting strategies. “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 stated. “This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time.”
However, Starbucks has yet to provide details on how the removal of this extra charge might affect the company’s overall profitability.
What Is Brian Niccol’s “Back to Starbucks” Plan?
Brian Niccol’s “Back to Starbucks” plan is a comprehensive strategy aimed at revitalizing the iconic coffee chain as it faces declining sales and foot traffic. Since taking over as CEO in September, Niccol has emphasized the need to return to the company’s roots as a welcoming coffeehouse. This initiative comes after Starbucks reported disappointing financial results, including a 6% decline in sales at U.S. stores open for at least a year.
Key elements of Niccol’s “Back to Starbucks” Plan include:
Enhanced Customer Experience
- Faster Service: Prioritizing speed and efficiency in order delivery.
- Simplified Menu: Focusing on core offerings and streamlining the menu to reduce complexity.
- Improved Store Ambiance: Creating a more welcoming and comfortable atmosphere with a focus on in-store dining.
- Personalized Service: Bringing back personalized touches like writing names on cups and using ceramic mugs for in-store drinks.
Cost Reduction
- Eliminating Extra Charges: Removing the extra fee for non-dairy milk alternatives.
- Menu Simplification: Reducing the complexity of the menu can lead to cost savings in ingredient sourcing and preparation.
Operational Efficiency
- Staffing Optimization: Improving staffing levels at peak times to enhance service.
- Reintroduction of Condiment Bars: Bringing back condiment bars to stores allows customers to customize their drinks on their own.
- Internal Promotions: Prioritizing internal hires for leadership roles to foster loyalty and expertise.
By focusing on these key areas, Niccol aims to restore Starbucks’ reputation as a premier coffee destination, attract new customers, and regain the loyalty of existing ones.