The new policy has been introduced by Brian Niccol, Starbuck’s new chairman and chief executive officer, who, in September, was brought in to revitalize the global coffee chain.
Consumers currently have to pay around 70-80c to choose plant-based milk over traditional dairy milk (depending on the market).
But as of later this week - timed with Starbucks holiday launch on November 7 - this charge will disappear in U.S. and Canada company-owned and operated stores.
“Core to the Starbucks Experience is the ability to customize your beverage to make it yours," said Niccol as he announced the new policy.
"By removing the extra charge for non-dairy milks we’re embracing all the ways our customers enjoy their Starbucks.”
Substituting non-dairy milk – whether its soymilk, oatmilk, almondmilk or coconutmilk – in a drink is the second most requested customization from Starbucks customers, behind adding a shot of espresso.
That means that almost half of Starbucks’ current consumers pay to customize their beverage.
Plant-based options are chosen by lactose-intolerant consumers, but they're also popular among a much wider consumer group. Reducing the plant-based milk charge is expected to be popular among Starbucks consumers who regularly order this option, and will see a significant price reduction for these drinks of around 10%.
The Plant Based Foods Association has welcomed Starbucks' decision. “The move by Starbucks to eliminate the surcharge for plant-based milk is significant on multiple fronts," explained Hannah Lopez, PBFA's Head of Marketplace Development.
"For years, customers who choose or need plant-based options have been paying extra, often due to the higher costs of plant-based ingredients. However, charging more for a dietary preference—or necessity—has raised equity concerns. It’s not fair that people who avoid dairy, whether due to lactose intolerance, dietary choice, or ethical reasons, should have to pay extra. The surcharge for plant-based milk has long been a point of frustration for consumers, who view it as an unnecessary penalty for making thoughtful dietary choices.
"This isn’t just a win for consumers who chose plant-based options for lactose-intolerance. People are increasingly choosing plant-based options to support sustainability, animal welfare, or simply because they prefer the taste."
Lopez now hopes Starbucks will inspire change across the industry.
"Starbucks setting this precedent as the world’s largest coffee chain will likely encourage other coffee shops and chains to follow suit," she said. "With more awareness and demand for equitable pricing in the food and beverage industry, Starbucks’ example could inspire a broader shift."
With plant-based fans long bemoaning the extra cost of non-dairy alternatives in cafes, the move has already been widely praised on social media.
Removing the extra charge for plant-based milk is one of several new initiatives announced by the company as it released its FY2024 financial results, which reported global store sales were down 2% over the year and down 6% in Q4.
Other plans are to cut back on Starbucks’ lengthy and complex menu; make cafes more personal; and rethink mobile orders.
