Starbucks Eliminates Surcharge for Plant-Based Milk: New Pricing Strategy in Focus

Starbucks is preparing a pricing offensive by eliminating the surcharge for plant-based milk in beverages at its US and Canadian locations. This move comes after new CEO Brian Niccol expressed a desire to provide long-term support for the company in an effort to stop the recent decline in customer traffic. With this initiative, the price for those opting for alternatives like soy, oat, or almond milk will drop by more than ten percent. The change affects all company-owned stores and was announced as one of several measures Niccol introduced following disappointing quarterly results. The coffee chain recorded a six percent decline in same-store sales in the US last quarter, while transactions fell by ten percent. Morgan Stanley described the outcome as an "exceptionally weak quarter." Niccol, who was recruited from Chipotle Mexican Grill, aims to bring Starbucks back to a successful trajectory. Since his appointment, the company's stock has risen by over 25 percent but fell by two percent after the release of the current quarterly figures. By removing the surcharges for plant-based milk and deciding to keep menu prices in North America stable through the end of the current fiscal year, Starbucks is responding to cost-conscious customers. In addition, Starbucks will discontinue the sale of olive oil-infused coffees next month, a remnant of long-time leader Howard Schultz. Niccol's "Back to Starbucks" plan includes streamlining the menu and providing a more pleasant café experience. In a video message, he emphasized the need for a fundamental change in the company's strategy.