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Starbucks offers dairy-free milk supplements for free
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Starbucks offers dairy-free milk supplements for free


new York
CNN

Your Starbucks drink with soy, oat, almond or coconut milk will no longer cost you extra.

Starting next week, Starbucks customers will no longer pay to add dairy-free milk to their orders. The company said removing the non-dairy milk surcharge means customers who apply for it will pay about 10% less than before.

Orders containing milk substitutes have increased at Starbucks in recent years, as have non-dairy alternatives at grocery stores. In 2021, Starbucks added oat milk to its menu. At Starbucks, non-dairy milk is the second most common order change after adding a shot of espresso.

This is one of several changes Starbucks has made under new CEO Brian Niccol, who took over the struggling company in September.

Starbucks reported a third straight quarter of declining sales and declining customer visits on Wednesday.

Starbucks' global sales at stores open at least a year fell 7% in the most recent quarter, and the number of customer transactions fell 8%.

“Our financial results were very disappointing,” Niccol said on the company’s quarterly earnings call. “It is clear that we need to fundamentally change our strategy to win back customers and return to growth.”

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Starbucks is evolving quickly under Niccol.

Starbucks is reducing promotional offers through its mobile app to entice customers to pay full price for its coffees and teas. Niccol wants to reposition Starbucks as a premium brand that avoids discounts.

Although discounts are being scaled back, Niccol said the company has no plans to increase prices next year. Starbucks has raised prices in recent years, causing some customers to turn away from the chain.

Starbucks also announced this week that it would be removing its controversial olive oil-infused drinks from the menu less than a year after they were introduced.

The range of “Oleato” drinks will be removed from Starbucks menus in the US and Canada starting in early November. This is part of Niccol's plans to pare down a menu he recently described as “overly complex”.

And Starbucks plans to reintroduce self-service condiment stations to stores, Niccol said Wednesday. The company removed them at the start of the Covid-19 pandemic in 2020.

“Both of our customers ask about it and our baristas say it helps them expedite orders,” he said.

Also making a comeback is baristas handwriting their customers' names on their drink orders. This is part of Niccol's strategy to give the conglomerate a coffeehouse atmosphere and give it a “human touch.”

Starbucks (SBUX) shares were largely flat in regular trading, but rose slightly 0.5% in after-hours trading.

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