The Seattle coffee giant stated that, at the launch of the new holiday menu on November 7, it will no longer charge extra to its customers for customizing beverages with non-dairy milk. When the change goes into effect on November 7, customers in the U.S. who pay to alter their drinks will see a price reduction of over 10%.
Brian Niccol, Starbucks chairman and chief executive officer, said, “Core to the Starbucks Experience is the ability to customize your beverage to make it yours. By removing the extra charge for non-dairy milks, we’re embracing all the ways our customers enjoy their Starbucks.”
“I made a commitment that we’d get back to Starbucks, focusing on what has always set Starbucks apart – a welcoming coffeehouse where people gather and we serve the finest coffee handcrafted by our skilled baristas,” continued Niccol. “This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time.”
The change is a smart business move from Starbucks, as the cost cut shows an acknowledgement of the current cost of living crisis affecting the company’s clients. Substituting non-dairy milk is the second most popular customization from Starbucks customers, closely following adding a shot of espresso. Therefore, this price change will have a significant impact on a high percentage of clientele.
The shakeup comes as the company released its latest financial figures, showing a slow in revenue, as net sales dropped 3% to $9.07 billion. “It is clear we need to fundamentally change our strategy to win back customers. ‘Back to Starbucks’ is that fundamental change,” said their CEO. “My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back. We have a clear plan and are moving quickly to return Starbucks to growth.”
“As shared in our Press Release last week, our results do not reflect the strength of our brand,” stated Starbucks’ COO Rachel Ruggeri, “I have seen what Starbucks is capable of when we focus on what we do best. I have confidence in our ability to turn around our business and expect we will return to long-term growth,” Ruggeri added.
In fiscal year 2025, Starbucks plans to cut back on the addition of new cafes and renovations.
By CEO NA Editorial Staff
