Starbucks (SBUX) Shakes Up Menu Pricing: Strategic Cuts on ’Drink Extras’ to Lure Back Customers

Starbucks tweaks the recipe for revenue—by trimming add-on costs instead of raising core prices.

The Upsell Slim-Down

No grand pronouncements, no flashy rebrands—just quiet adjustments to what you pay for whipped cream, syrups, and other premium tweaks. Because nothing says 'we value you' like selectively not nickel-and-diming.

Wall Street’s Latte Art

Analysts watch closely as SBUX walks the tightrope: balancing margin optics with the risk of regulars noticing their customized order now costs less. A masterclass in perception management—where 'price cut' gets spun as 'customer-centric flexibility.'

Meanwhile, franchise owners check Q3 comps and whisper: *‘Better this than another loyalty program overhaul.’*

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Going forward, Starbucks will charge a flat fee of $0.80 for all drink syrup and sauce modifications in an effort to simplify its pricing and improve the customer experience. This is the latest change under new CEO Brian Niccol, who has been tasked with boosting Starbucks reputation and sales.

The flat $0.80 charge will apply to any syrup or sauce that’s added to an unflavored beverage. Adding or substituting sauces or syrups to a preflavored beverage, such as adding vanilla syrup to a mochaccino or classic syrup to any beverage will be free of charge. Previously, Starbucks’ prices varied across sauce and syrup flavors and various drinks, leading to confusion and frustration for customers.

Ensuring Consistency

Starbucks said that the flat pricing is meant to add customer value and consistency. It will also make it easier for baristas to track and manage drink orders, hopefully speeding up order fulfillment times. The Seattle-based company is also testing a new feature in its app that shows updated pricing as customers modify their orders, rather than simply revealing the final price at checkout.

CEO Brian Niccol is working to turn around Starbucks and pull the retail coffee chain out of a sales decline. Since joining Starbucks in September 2024, the former CEO of Chipotle Mexican Grill (CMG) has launched a “Back to Starbucks” strategy that is focused on a simplified menu, transparent pricing, and more comfortable coffee shops. SBUX stock has gained 2% this year.

Is SBUX Stock a Buy?

The stock of Starbucks has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 12 Buy and 11 Hold recommendations issued in the last three months. The average SBUX price target of $94.30 implies 2.85% upside from current levels.