Why Do Coffee Shops Charge for Non-Dairy?

To charge or not to charge for non-dairy milk? Why do so many coffee shops charge for oat milk? Sometimes as much as $1.25 for a couple of ounces. Yes, oat milk is priced at roughly twice the amount as dairy milk but do coffee shop owners think adding that extra “fee” to their $4 drip coffee or $7 latte is going to excite the customer and make them feel oodles of joy? In some cases, such as my mom’s, the consumer is allergic to dairy and they have no other option. (Shoutout to Midtown Athletic Club who let me take this picture of their FREE non-dairy milks.)

In recent news, Paul McCartney was so fed up with this issue he used his stardom to influence policy changes at Pete’s Coffee chains to follow the footsteps of Starbucks and Dunkin across the country. McCartney stated, “I must say this [vegan milk upcharge] surprised me as I understand that your company is committed to reducing methane emissions and water waste, yet cow’s milk significantly contributes to them,” writes McCartney. “I would like to politely request that you consider dropping the upcharge on plant milks, just as Starbucks and Dunkin’ have recently done.” As the EVP of PETA explains, “Peet’s punitive price hike on vegan milks leaves a bad taste in the mouth of anyone who cares about animals or the environment,” says PETA Executive Vice President Tracy Reiman. “PETA is calling on the public to join the push for Peet’s to brew up compassion and stop charging extra for kind and climate-friendly choices.”

If you own a coffee shop, consider being different and unique. If you’re promoting your shop as an equitable shop that supports sustainability does it make sense to charge the consumer? One of the best ways to provide value to a consumer is through “delight.” Try delighting your customers, not creating a negative experience because the other coffee shop charges.