Starbucks Eliminates Surcharge for Plant-Based Milk: A Step Towards Customer Satisfaction

The popular coffee chain Starbucks has announced that the surcharge for plant-based milk alternatives such as almond, coconut, oat, and soy milk will be eliminated starting November 7. This coincides with the launch of this year's holiday menu. Changing the type of milk is the second most common customization at Starbucks after adding an extra shot of espresso. Previously, this change cost 70 to 80 cents, depending on the market. From the effective date, customers will benefit from a price reduction of over 10%. Brian Niccol, CEO and chairman of Starbucks, emphasized in a press release the importance of personalized beverage design for the Starbucks experience and stated that the abolition of the surcharge for plant-based milk reflects the diversity of customer preferences. Financially, Starbucks experienced a 6% decline in sales in the US and North America from July to September. For the entire fiscal year ending September 29, 2024, sales decreased by 2% in this region and globally fell by 7% in the fourth quarter. Additionally, the number of customer visits in North America decreased by 10% in the fourth quarter, but this was partly offset by an increase in the average purchase value by 4%. The company reported a net income of $909.3 million for the fourth quarter, a decrease of 25% compared to the previous year. CEO Niccol, who succeeded Laxman Narasimhan in August, announced a new strategy called "Back to Starbucks" to win back customers. This includes a simplification of the menu and a revision of the pricing structure. As part of this strategy, the Oleato olive oil beverages and "Cold Foam" options will also be removed from the menu.