Starting next week, Starbucks will eliminate the extra charge for non-dairy milk options like soy, oat, almond, and coconut. This change means customers can expect to pay about 10% less when they choose these alternatives. The popularity of non-dairy milk has surged in recent years, with such modifications becoming the second most common request at Starbucks, just after adding an espresso shot. Starbucks introduced oat milk to its menu in 2021, reflecting this growing trend.
Under new CEO Brian Niccol, who took the helm of Starbucks in September, the company has implemented several changes. Recently, Starbucks reported its third consecutive quarter of declining sales and fewer customer visits. Global sales at stores open for at least a year fell by 7% last quarter, and customer transactions decreased by 8%.
During the company’s quarterly earnings call, Niccol expressed that the financial results were quite disappointing. He emphasized the need for a fundamental shift in strategy to regain customer loyalty and drive growth.
Reintroducing the condiment station and the Sharpies
Starbucks is taking swift action under Niccol’s leadership. The company plans to reduce promotional offers through its mobile app to encourage customers to pay full price for their coffees and teas. Niccol’s goal is to reposition Starbucks as a premium brand that avoids discounts.
Despite cutting back on promotions, he stated that there are no plans to increase prices next year, even though Starbucks has raised prices in recent years, which has turned some customers away. Additionally, the company announced that it will be removing its controversial olive oil-infused drinks from the menu less than a year after their introduction.
Starting in early November, Starbucks will remove its lineup of “Oleato” drinks from menus in the US and Canada as part of Niccol’s effort to simplify what he describes as an “overly complex” menu.
Additionally, the company plans to reintroduce self-serve condiment stations in stores, which were removed during the early days of the Covid-19 pandemic in 2020. Niccol noted that both customers and baristas have requested this change to help speed up orders.
Baristas will also return to handwriting customers’ names on drink orders, a move aimed at restoring a coffeehouse atmosphere and adding a more personal touch.
Starbucks shares remained relatively stable during regular trading but saw a slight increase of 0.5% in after-hours trading.