The Former Cost of Oat Milk at Starbucks
Before a policy change in late 2024, Starbucks customers paid extra for non-dairy milk substitutions, including oat milk. The fee varied by location but was typically 70 to 90 cents per beverage in the U.S.. This surcharge applied to drinks customized with oat, soy, almond, and coconut milk.
Oat milk was introduced nationwide in spring 2021, meaning for several years, customers choosing it paid this additional cost. This led to criticism from patrons and activists who felt it unfairly penalized those preferring or needing non-dairy options.
Factors Influencing the Price Change
The elimination of the non-dairy surcharge on November 7, 2024, was influenced by several years of pressure and changing market conditions.
Activism and Customer Demand
Animal rights organizations like PETA actively campaigned against the surcharge for years. Their efforts, alongside other groups and petitions, kept the issue prominent.
High customer demand was also crucial. Non-dairy milk substitution was Starbucks' second most requested customization, highlighting a large and growing customer base for plant-based choices. Removing the fee addressed both activist concerns and market demand.
Financial Pressures and Litigation
The decision also coincided with financial challenges for Starbucks, including reduced sales. As part of a strategy to improve customer experience, the new CEO included removing the surcharge. In March 2024, Starbucks also faced a lawsuit alleging discrimination against lactose-intolerant customers. Eliminating the upcharge was seen as a strategic move to reconnect with customers.
The Current Policy: No Extra Charge for Oat Milk
Effective November 7, 2024, Starbucks removed the extra charge for non-dairy milk substitutions at company-operated stores in the U.S. and Canada. This includes:
- Oat milk
- Soy milk
- Almond milk
- Coconut milk
This change offered significant savings for regular non-dairy drinkers, reducing their beverage cost by over 10%. Starbucks' decision aligns it with other coffee chains that had already dropped similar fees. The official announcement can be found on the {Link: Starbucks website https://about.starbucks.com/stories/2024/non-dairy-no-extra-charge/}.
Comparative Cost Analysis
Below is a comparison illustrating the impact of the policy change, assuming a 70-cent surcharge:
| Item | Cost Before Nov 7, 2024 | Cost After Nov 7, 2024 |
|---|---|---|
| Grande Latte with Dairy Milk | ~$5.25 | ~$5.25 |
| Grande Latte with Oat Milk | ~$5.95 (includes ~$.70 surcharge) | ~$5.25 (no surcharge) |
| Venti Iced Latte with Oat Milk | ~$6.45 (includes ~$.70 surcharge) | ~$5.75 (no surcharge) |
| Standard Oat Milk Drink | Base Price + Surcharge | Base Price Only |
This comparison shows substantial long-term savings for those who frequently choose plant-based milks, making these options more accessible.
Conclusion
Starbucks previously charged an additional fee for oat milk and other non-dairy alternatives, sparking criticism from customers and activists. This surcharge, typically between 70 and 90 cents, was a frequent complaint. The company removed the surcharge on November 7, 2024.
