Coffee Chain Dutch Bros Drops Extra Charge for Non-Dairy Milks, Following Starbucks

Bloomberg
01-09

(Bloomberg) -- Dutch Bros Inc. dropped its upcharge for non-dairy milks, following a similar move by larger competitor Starbucks Corp. 

The change went into effect on Jan. 1, according to a customer service message from the chain shared with Bloomberg News by the Center for Responsible Food Business, an advocacy group that has pushed companies to remove fees on non-dairy milk. 

Dutch Bros has 950 locations in the US. It was the third-largest coffee chain in the US by sales in 2023, according to data compiled by researcher Technomic.

“Dutch Bros’ decision to drop its non-dairy milk surcharge is a step in the right direction and a clear sign that the tides are turning in the coffee industry,” said Taylor Warren, CRFB’s president. The group argues the extra cost is discriminatory against customers who can’t drink milk or want to choose a more environmentally friendly option.

Dutch Bros confirmed the move, saying it was part of its “larger commitment to customization.” The company’s shares rose 65% in 2024, compared to a 5% decline for Starbucks.

Starbucks dropped its non-dairy milk surcharge starting Nov. 7, effectively cutting prices for some customers as it seeks to revive growth. Previously, non-dairy milk would cost 70 to 80 cents, depending on the market.

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