Popular doughnut chain Dunkin’ is poised to eliminate its surcharge for non-dairy milk alternatives next month, a source with the advocacy group Switch4Good confirmed to VegNews. The move aligns with recent policy changes by major competitors such as Starbucks and Tim Hortons. The surcharge will be eliminated on March 5th.
Following Starbucks, Dunkin’ is the second-largest chain to eliminate the surcharge, boasting more than 9,500 US locations. The announcement now also means the top five US coffee chains by sales—Starbucks, Dunkin’, Dutch Bros, Tim Hortons, and Scooter’s—have all stopped charging customers for non-dairy milk in less than three months, impacting more than 29,000 coffee shop locations across the US.
Dunkin’
“The power to affect change will always reside with the consumer, and we will never stop advocating for those who are unfairly penalized for being lactose intolerant, having cultural beliefs that refrain from consuming cow’s milk, or for maintaining a vegan diet,” Dotsie Bausch, founder and executive director of Switch4Good, said in a statement. Bausch, a former Olympic cyclist, was the oldest athlete in history in her cycling discipline to win Silver.
“The era of the ‘milk tax’ is ending,” Taylor Warren, president of the Center for Responsible Food Business said in a statement. “With the largest US coffee chains eliminating their non-dairy upcharges, it’s clear that consumers have won this fight. Coffee companies that continue to charge extra for plant-based milk are now fully out of step with both customer expectations and market trends.”
Non-dairy surcharge
Historically, customers opting for plant-based milk at various coffee chains have faced additional charges, with surcharges ranging from $0.50 to over $2, depending on the location and product. These extra costs have been a point of contention, especially among those with lactose intolerance or milk allergies. Estimates indicate that lactose intolerance affects between 30 and 50 million Americans, with some form impacting up to 48 percent of the population.
The debate over non-dairy milk surcharges gained legal traction in recent years. In December 2023, a class-action lawsuit was filed against Dunkin’ in the Northern District of California. The plaintiffs, representing ten individuals with lactose intolerance and milk allergies, alleged that the company’s additional charges for plant-based milk violated the Americans with Disabilities Act (ADA) and various state-level anti-discrimination laws. The lawsuit contended that these surcharges constituted discrimination against those with recognized disabilities.
Dunkin’
In response to mounting legal pressures and shifting consumer expectations, several other major coffee chains have revised their policies. Starbucks, for instance, announced last October that it would eliminate the extra charge for non-dairy milk customizations in its US and Canada company-owned stores. Brian Niccol, Starbucks’ chairman and chief executive officer, stated, “Core to the Starbucks experience is the ability to customize your beverage to make it yours. By removing the extra charge for non-dairy milks we’re embracing all the ways our customers enjoy their Starbucks.”
Following Starbucks’ lead, Tim Hortons confirmed earlier this month that it would also eliminate the surcharge for plant-based milk in both Canada and the US. This decision was influenced by advocacy efforts from organizations such as Switch4Good, People for the Ethical Treatment of Animals, and MFA, which have long campaigned against the financial penalties imposed on customers choosing non-dairy options.
“We have once again proven our might,” Bausch said in a statement. “No matter how massive a coffee company may be, we have once again shown that we will not back down in the fight for dietary justice.”
The end of surcharges?
The financial implications of this policy shift are multifaceted. While the elimination of surcharges may lead to a reduction in per-transaction revenue from beverages customized with non-dairy milk, it is anticipated to enhance customer satisfaction and loyalty. Moreover, as the cost of plant-based milk has reached parity with or become cheaper than dairy milk in certain regions, the financial impact on companies may be less significant than previously assumed.
Dunkin’
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Bausch says her organization is “relentless” in its pursuit of economic justice for BIPOC consumers who have been unfairly targeted through policies that are based on principles of dietary racism. She says Dunkin’s decision proves the impact that an organization like Switch4Good can have in catalyzing an entire supporter base to pressure corporations. “Until the very last coffee chain removes their non-dairy surcharge, we will continue our indefatigable fight for the animals, the people, and the planet.”
Industry analysts suggest that this trend could prompt other coffee chains and food service providers to reevaluate their pricing structures concerning non-dairy alternatives. As consumer preferences continue to shift toward plant-based options, businesses may find it advantageous to adopt more inclusive pricing models to remain competitive.
While Dunkin’ is becoming more inclusive with its coffee, the chain has not announced plans to release a vegan doughnut in the US, despite offering several vegan options at its UK locations.
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