Starbucks' new CEO has announced a price change as an opportunity for the chain "to do better" and reconnect with its loyalists.
Starbucks Just Got Cheaper for Almost 50% of U.S. and Canada Customers
Published on Oct. 31, 2024
If you still allocate some budget to enjoy your regular Starbucks fix, you might argue it’s an investment in your wellness (and we wouldn’t judge). And, if you’re a believer in the benefits of non-dairy, you’ll no longer feel up-charged for shelling out a little extra money for your preferred milk.
That’s because yesterday the chain announced that starting November 7, company-owned and operated Starbucks locations throughout the U.S. and Canada will no longer charge extra for customizing beverages with non-dairy milk—”soy, oat, almond and coconut,” a representative for the brand told us in an email.
Those substitutions typically cost between 70 and 80 cents, meaning those who modify their drinks with milk alternatives may save around 10% on their order. This new price break will impact “almost half of Starbucks current customers who pay to modify their beverage” in the US, the chain said, as switching out milk or cream for non-dairy milk is second only to adding a shot of espresso as the most commonly requested customization.
Johns Hopkins environmental research published by the National Library of Medicine in 2023 stated that the “unit price of plant milks was on average 20% higher than dairy milk.” However, Starbucks negotiates with its suppliers on its mass wholesale purchases.
“We’re embracing all the ways you enjoy Starbucks,” the company wrote in their October 30 press release. “At the heart of the Starbucks Experience has, and always will be, the ability to customize beverages and our baristas’ expertise in helping you find, and craft your Starbucks beverage.” [sic]
This appears to be one way the world’s biggest coffee chain is working to revamp its business model in an effort to bring back a core base of customers in 2024. The company’s new CEO, Brian Niccol, recently told Yahoo! Finance that Starbucks will also make all orders in four minutes or less, bring back condiment bars (no more requesting that packet of Sugar in the Raw!), and pause price increases.
“Starbucks is a beloved brand with wonderful people … woven into the fabric of people’s lives and the communities we serve,” Niccol wrote in an open letter on September 10. He also acknowledged that there’s a “shared sense” that Starbucks has “drifted from [its] core,” saying: “Our stores have always been more than a place to get a drink. They’ve been a gathering space, a community center where conversations are sparked, friendships form, and everyone is greeted by a welcoming barista.”
Niccol continued: “Many of our customers still experience this magic every day, but in some places—especially in the U.S.—we aren’t always delivering. It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better,” he said.
November 7 is the same day that the company plans to release its 2024 holiday cups.
For daily wellness updates, subscribe to The Healthy by Reader’s Digest newsletter and follow The Healthy on Facebook and Instagram. Keep reading:
