• by Tanya Gazdik , November 3, 2024

Starbucks has some changes afoot, its new CEO Brian Niccol told investors last week during the earnings call. 

“Starbucks will no longer charge customers extra for nondairy milk alternatives in their lattes, macchiatos and other beverages, part of a strategy to boost slowing sales by streamlining its menu and re-creating a more inviting coffeehouse vibe at its stores,” according to The Washington Post. “Customers previously complained that the extra fee for nondairy substitutes discriminated against people with lactose intolerance or other dietary restrictions. In March, three California residents filed a $5 million class-action lawsuit against Starbucks over ‘illegal price discrimination,’ saying they paid surcharges of up to 80 cents per drink.”

The change takes effect at Starbucks-owned and -operated stores in the United States and Canada on Nov. 7. Customers ordering drinks with nondairy substitutes can expect price reductions of more than 10%.

"The company is also setting a goal of getting customers their orders in four minutes or less,” according to The New York Times.  Brewed coffee will now be delivered to customers at the register, and customers can customize their coffee themselves — adding milk and sweeteners — at the condiment stations that the company will be reinstalling. That should also alleviate some of the workload for baristas."

Another change won’t save customers money, but might make them feel more connected to the brand:  "Starbucks is bringing back hand-written names in Sharpie on cups and self-serve stations with sugar and cream to try to win back customers,” according to CNN. “Baristas handwriting customers’ names and messages on their drink orders in marker will make a comeback.”

It’s part of Niccol’s strategy to recreate a coffeehouse vibe at Starbucks and add a “human touch.”

“Our problems are fixable — most of what we need to do is within our control,” Niccol told investors. While work is already underway on some issues, he did note that “some things will take some time,” per The New York Times. “Mr. Niccol said the company was reviewing and revising its store design with a goal of bringing back the cafe experience and more comfortable seating.”