As a member of the Extreme Investor Network, you know the importance of staying ahead of the game when it comes to business news. That’s why we are thrilled to bring you the latest update from Starbucks that is set to shake up the coffee industry.
Starbucks announced that it will be removing the surcharge for dairy substitutes, offering oat milk as a new dairy-free option for its customers. This change is aimed at saving U.S. customers more than 10% on their drinks and is set to take effect on Nov. 7.
The decision to eliminate the extra fee for dairy substitutes comes after years of customer requests and signals a shift in Starbucks’ pricing strategy as it aims to stay competitive in a market where milk alternatives have become increasingly popular. With its U.S. sales on the decline due to higher prices deterring some customers, Starbucks is making strategic changes to ensure a visit to their stores is worth it every time.
This move to remove the surcharge coincides with the launch of Starbucks’ holiday menu and the discontinuation of its olive oil-infused drinks. The company’s new CEO, Brian Niccol, who previously led Chipotle, has been tasked with revitalizing Starbucks’ business and has already started making strategic changes, including simplifying menus and fixing pricing.
In addition to offering oat milk, Starbucks customers can already add up to 4 ounces of a dairy substitute to certain drinks at no extra charge. This change marks a new chapter in Starbucks’ long history of offering nondairy milk alternatives, starting with soy milk in 1997 and expanding to coconut milk in 2015 and almond milk in 2016.
Despite these positive changes, Starbucks has faced criticism in the past for its surcharges on dairy alternatives. PETA has been vocal in its opposition to these fees, even resorting to stunts to draw attention to the issue. However, with the recent announcement of the removal of the surcharge, it seems Starbucks is listening to its customers and making strides towards a more inclusive pricing strategy.
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