• Campaigns by PETA and Free4DairyFree allege that espresso retailers “tax” customers who order plant milks.
• Starbucks, Dunkin’, Pret A Manger, Dutch Bros, Scooter’s Espresso, and Gail’s have all discontinued their alt milk surcharges.
• Plant milks value considerably extra, squeezing impartial cafés’ tight margins whereas giant chains can soak up the distinction.
• Specialty espresso retailers should rigorously stability shopper expectations with monetary sustainability.

For over a decade, many espresso retailers utilized a modest surcharge for plant milks. The rationale was easy: oat, almond, soy, and coconut milks value greater than dairy.

Within the UK, as an illustration, plant-based choices retail at round £1.92 per litre, versus £1.24 for cow’s milk – a 55% worth distinction that’s troublesome for a lot of impartial espresso retailers to cowl.

However as plant milks have turn into extra mainstream, shopper resistance to surcharges has grown. In response, main chains have begun eradicating them: Peet’s Espresso dropped its US 80 cent upcharge in mid-2025, whereas Blue Bottle and Stumptown have even made oat milk the default in some US shops.

These strikes are reshaping shopper expectations and growing strain on impartial cafés to comply with swimsuit. Nevertheless, with out economies of scale, many small specialty espresso retailers can’t simply soak up the added value, elevating questions on whether or not eliminating plant-milk surcharges is a practical or honest expectation.

Richard Agudelo of Terremoto Espresso, Alexandru Niculae of Bob Espresso Lab, Will Douglas of Loveless Coffees, and Tim Leclercq of Maïzly share their views.

You might also like our article on whether or not defaulting to oat milk paid off for espresso retailers.

The rise of plant milks in espresso

Plant milks, significantly oat, have turn into a fixture on espresso store menus over the previous decade. 

“There are various causes for the rising reputation of plant milks, however the three we hear most frequently are: first, individuals with allergy symptoms or intolerances who need to keep away from dairy,” says Tim, the co-founder and CEO of corn milk model Maïzly. “Second, these in search of a more healthy different, involved about dairy’s excessive sugar content material and the opportunity of traces of antibiotics or steroids utilized in cows, or whose dietary preferences lean towards flexitarian or vegan. 

“And third, sustainability: dairy has a a lot bigger environmental footprint than plant-based milks,” he provides. “In Maïzly’s case, that is very true for water and land use, as corn requires much less land and water per unit of produce than every other above-ground crop.”

In keeping with World Espresso Portal knowledge, greater than 28% of shoppers at UK-branded espresso chains now select oat milk, making it the nation’s hottest non-dairy choice.

Early adoption was pushed by a mix of dietary wants, way of life decisions, and style preferences. Many customers have been initially prepared to pay a premium, significantly as a result of oat milk most carefully replicates the feel and mouthfeel of dairy. 

There was additionally broad acceptance that plant-based milks value extra to supply, require extra elements and specialised processing to carry out properly when steamed, and lack the economies of scale and subsidies that help the dairy business.

The backlash in opposition to surcharges

Extra not too long ago, nonetheless, sentiment has begun to shift. An estimated 65% of the worldwide inhabitants is lactose illiberal, prompting rising scrutiny of surcharges that disproportionately have an effect on these unable to eat dairy. 

“The price of dwelling has risen considerably since Covid-19, which creates the push again on costs, but additionally the view that plant-based milks are the brand new commonplace and now not a luxurious,” Tim provides. “So the additional cost is beginning to really feel unfair.”

Advocacy campaigns led by organisations resembling PETA and Veganuary have additionally framed surcharges as inequitable, intensifying strain on espresso retailers to rethink their pricing methods.

The case for charging extra for plant milks

Though the argument in opposition to upcharging for plant milk is legitimate, the case for such surcharges is equally compelling.

By far probably the most outstanding purpose is the upper prices of producing plant milks.

“Eight ounces of dairy prices us roughly US 21 cents; the identical quantity of oat or almond milk prices 85 cents,” says Will, the co-owner of Loveless Coffees in Brooklyn, New York Metropolis, US.

Barista-formulated variations are particularly expensive. Components added to duplicate the fats and protein contents of dairy milk will enhance manufacturing prices. However with out them, pouring crisp, high-contrast latte artwork could be not possible even for probably the most expert baristas.

Though some espresso retailers have explored methods to offset the extra value, resembling producing in-house plant milks or including further soy lecithin to business milks, a surcharge is usually probably the most viable choice to attain constant outcomes.

“Plant milks merely value us extra, so there’s a small further cost to maintain issues honest and constant,” says Alexandru, the co-owner of Bob Espresso Lab in Bucharest, Romania. He’s additionally the 2016 World Espresso Roasting Champion and a multi-time Romanian Brewers Cup Champion. “Massive chains can soak up the hit, however we don’t have that scale.”

Massive vs small

Along with main gamers resembling Starbucks, Costa, Peet’s, Dunkin’, and Pret A Manger, extra established specialty espresso manufacturers like Stumptown and Blue Bottle have been capable of drop their surcharges. Notably, each roasters have been acquired by multinationals within the 2010s, growing their potential to soak up prices.

Smaller, impartial operators, in the meantime, don’t profit from large-scale centralised sourcing and high-volume orders, thereby inhibiting their potential to take away plant milk upcharges with out affecting margins. Subsequently, they have to tread extra rigorously.

“Non-dairy milks are double the worth of dairy; we merely need to account for that,” says Richard, the founding father of Terremoto Espresso in Manhattan, New York, US. “We are able to’t soak up the worth into our backside line, extra so on this present market.”

So what’s the answer for specialty espresso retailers?

As plant-based milks transfer from optionally available add-ons to anticipated menu staples, impartial espresso store operators are more and more confronted with a basic query: who absorbs the price of this transition?

For a lot of, the reply begins with monetary literacy and a transparent understanding of operational effectivity. Some cafés could take away surcharges if they’ve adequate margin headroom, viewing it as a aggressive lever as extra chains get rid of plant-milk upcharges.

“You need to take a look at your prices and determine for those who’re there to supply a top quality product or simply churn and burn,” Richard says. “Should you can handle to soak up the fee, that may be a bottom-line enterprise choice.”

Others see surcharges as a essential and largely accepted actuality. “Fortunately, since we opened, we now have all the time had a markup for non-dairy milks,” Richard provides. “Just one buyer has complained in our ten years in enterprise.”

For a lot of specialty cafés, restricted storage capability, perishable stock, and tight margins necessitate frequent deliveries and cautious inventory administration to minimise waste. On this context, surcharges perform as a cost-recovery mechanism, serving to operators keep beverage high quality whereas aligning pricing with operational realities.

Pricing methods may differ by beverage sort. “We cost US 50 cents for plant-based milks in espresso drinks, however not when including to drip espresso or chilly brew,” Will says, noting that the strategy has met little resistance from prospects.

Much less is extra

Nonetheless, as shopper expectations evolve, operators that retain surcharges threat being undercut by opponents that don’t. Transparency, subsequently, performs a essential position in sustaining belief. “We clarify that we use premium plant milks and regionally sourced dairy, and that pricing displays actual prices, not arbitrary charges,” Alexandru explains.

For some, simplification provides a path ahead. Limiting menus to 1 or two well-performing plant milks may also help management prices with out compromising selection. “Alt milks push us creatively and assist diversify the menu past our core dairy-based drinks,” Alexandru provides. “However you don’t want ten differing kinds – only one or two that suit your model id.”

Plant-milk surcharges are quickly disappearing from espresso chains, signalling how mainstream non-dairy choices have turn into. For impartial specialty cafés, nonetheless, the choice is way from easy.

Charging further dangers alienating prospects who now anticipate plant milks as commonplace, but eradicating the price can pressure already tight margins. With larger enter prices nonetheless a actuality, impartial cafés should strike a cautious stability between assembly shopper expectations and defending their backside line. 

Those that achieve this with monetary self-discipline and clear communication are probably to succeed.

Loved this? Then learn our article on whether or not dairy is making a comeback in specialty espresso.

Picture credit: Terremoto Espresso, ,Maïzly 

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