Dutch Bros Follows Starbucks, Eliminates Non-Dairy Milk Upcharge

Dutch Bros Inc., the third-largest coffee chain in the United States by sales, has announced that it will no longer charge extra for non-dairy milks. This decision aligns with similar actions taken by Starbucks Corp. and signals a shift in the industry towards more inclusive pricing.

The change came into effect on January 1, as confirmed by a customer service message from the chain, which was shared with Bloomberg News by the Center for Responsible Food Business (CRFB). The CRFB, an advocacy group, has actively campaigned for companies to eliminate fees on non-dairy milk, arguing that the extra cost is discriminatory towards those who cannot consume dairy products or prefer environmentally friendly options.

Taylor Warren, President of the CRFB, praised Dutch Bros' decision, calling it "a step in the right direction and a clear sign that the tides are turning in the coffee industry." Dutch Bros, which operates 950 locations across the US, emphasized that the removal of the surcharge is part of its "larger commitment to customization."

This strategic move appears to have positively impacted Dutch Bros' market performance. In 2024, the company's shares soared by 65%, in stark contrast to Starbucks, whose shares experienced a 5% decline in the same period.

Starbucks set the precedent by eliminating its non-dairy milk surcharge on November 7. This adjustment effectively reduced prices for certain customers, helping the company in its efforts to reignite growth. Prior to this change, consumers were paying an additional 70 to 80 cents for non-dairy milk, varying by market.