Starbucks is eliminating its surcharge for non-dairy milk, making soy, oat, almond, and coconut milk free additions starting next week. This change reduces the cost of non-dairy milk orders by approximately 10%. Non-dairy milk options have surged in popularity, becoming the second most common order modification after espresso shots.
The decision comes amid several changes led by new CEO Brian Niccol, who joined in September to revitalize the company. Under Niccol’s leadership, Starbucks is shifting strategies after reporting three consecutive quarters of declining sales and customer visits. Global same-store sales dropped by 7% last quarter, with an 8% decrease in transactions.
Niccol aims to reposition Starbucks as a premium brand by scaling back discounts and promotional offers through its app. However, he noted that Starbucks does not plan to raise prices next year, despite recent increases that have driven some customers away.
Additional adjustments include removing the “Oleato” line of olive oil-infused drinks from menus in the U.S. and Canada. Furthermore, Starbucks is reintroducing self-serve condiment stations, which were removed at the start of the pandemic. Baristas will also resume handwriting customer names on orders, adding a personal touch to enhance the coffeehouse atmosphere.
Starbucks shares (SBUX) remained steady in regular trading but rose slightly by 0.5% after hours.