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HomeBusinessStarbucks Enhances Non-Dairy Milk Offerings for Customers Seeking Better Value

Starbucks Enhances Non-Dairy Milk Offerings for Customers Seeking Better Value

 

Starbucks is lowering costs for non-dairy milk options starting November 7


If you enjoy non-dairy milk in your beverages, Starbucks is set to bring you a better offer.

 

Beginning November 7, coinciding with the launch of Starbucks’ holiday menu, the coffee chain will eliminate the additional charge for non-dairy milk options like almond, coconut, oat, and soy milk.

Starbucks reports that opting for non-dairy milk is the second most popular customization choice among customers, following the request for an extra espresso shot. Currently, there is a fee ranging from 70 cents to 80 cents for making this switch, depending on location.

This means that those who currently pay for non-dairy milk will essentially receive a discount of over 10% once this new policy takes effect.

“At Starbucks, customization is fundamental to enhancing the customer experience,” said Brian Niccol, CEO and chairman of Starbucks, in a press release. “By removing the additional fee for non-dairy options, we welcome all the ways our customers enjoy their Starbucks.”

 

Starbucks reports a 6% drop in sales in the US

Starbucks announced a 6% decrease in sales at its U.S. and North American locations for the July to September period, as noted in the financial results for the fourth quarter and full fiscal year announced on Wednesday.

 

For the entire fiscal year ending September 29, 2024, sales in the U.S. and North America were down by 2%. On a global scale, sales decreased by 7% in the fourth quarter and 2% for the fiscal year.

The number of transactions at Starbucks experienced a more significant decline than sales: in the U.S. and North America, transactions fell by 10% in the fourth quarter, but this was somewhat offset by a 4% rise in the average customer spending. For the full fiscal year, transactions decreased by 5% in the region, though this was balanced by a 4% increase in average spending per customer.

 

Starbucks reported a net income of $909.3 million for the fourth quarter, which is a 25% drop from $1.22 billion in the same period the previous year.

“It’s evident that we need to significantly alter our strategy to regain our customers,” said Niccol in the company’s earnings report. “‘Back to Starbucks’ is that essential change.”

 

Niccol, who previously headed Chipotle, was appointed in August to succeed Starbucks CEO Laxman Narasimhan. He elaborated on his “Back to Starbucks” initiative last week on the company’s website, stating that they will simplify their overly complicated menu, adjust pricing, and ensure that customers feel their visits are worthwhile every time.

 

As part of this effort, Starbucks announced plans on Wednesday to remove the Oleata olive oil-infused drinks and cold foam selections from its menu.

 

Eliminating the surcharge for non-dairy milk aligns with Niccol’s strategy. “I promised to refocus on what makes Starbucks unique – a warm coffeehouse atmosphere where people meet and where we serve the finest coffee, crafted by our expert baristas,” Niccol commented. “This is just one of the many changes we are implementing to guarantee that every visit to Starbucks is enjoyable and valuable.”