'Milk tax is ending': Dunkin' to nix upcharge for plant-based milk, dairy alternatives
Beginning March 5, dairy alternatives will be standard options for Dunkin' beverages at no additional cost to guests, a spokesperson from the Massachusetts-based coffee chain told USA TODAY in an email on Thursday.
"This will allow guests visiting any Dunkin' location to enjoy traditional dairy or alternative dairy options in any beverage without an additional charge," the spokesperson said.
The policy change was guided by guest feedback, according to the spokesperson.
Following this decision, the top five U.S. coffee chains by sales — Starbucks, Dunkin, Dutch Bros, Tim Hortons, Scooter's— will have all stopped charging customers extra for non-dairy milks in just over three months, according to the Center for Responsible Food Business. This represents change at more than 29,000 coffee shop locations across the country, the organization, which promotes ethics and responsibility in the food industry, said.
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'The era of the 'milk tax' is ending," Taylor Warren, president of the Center for Responsible Food Business, said in a statement emailed to USA TODAY. "With the largest U.S. 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.'
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Dunkin' changing milk policy following class action lawsuit
This decision also comes after a class action lawsuit filed on Dec. 26, 2023, in the U.S. District Court in Northern California sought $5 million in damages from Dunkin' on behalf of several of the chain's customers who requested non-dairy substitutions.
Dunkin', which earned $250 million in revenue between 2018 and 2023, made significant profits after it "created a separate, higher-priced menu, aimed at customers who cannot ingest milk," the lawsuit states. The complaint goes on to argue that there is 'no material difference between the price of lactose-containing milks and the price of Non-Dairy Alternatives.'
All 10 plaintiffs a part of the lawsuit are either lactose intolerant or have milk allergies, according to the complaint. Their attorneys argue that the surcharge for the substitutions is a form of discrimination that violates the American
Attorneys representing 10 plaintiffs who are either lactose intolerant or who have milk allergies argue that the surcharge for the substitutions is a form of discrimination that violates the Americans with Disabilities Act.
Court sided with Dunkin' and dismissed class action lawsuit
The court sided with Dunkin' and dismissed the lawsuit on May 31, 2024, court records show. The plaintiffs filed an amended class action complaint on Dec. 11, 2024, after the court deemed that Dunkin' had "no role in this matter."
The coffee chain filed a motion to dismiss the lawsuit on Wednesday, citing the plaintiff's failure to "cure any of the deficiencies that led this Court to dismiss their initial complaint."
Keith Gibson and Bogdan Enica, attorneys for the plaintiffs, told USA TODAY in a statement: "We view this change by Dunkin Donuts as a win for disabled consumers. We believe our pending lawsuit against Dunkin Donuts and its franchisees played a vital role in forcing the decision by Inspire Brands to eliminate the Illegal Non-Dairy Alternatives Surcharge and we look forward to raising this fact with the Court."
"We will be continuing our court battle to make sure that the change is permanent and to ensure compensation for Dunkin's clients that were charged the fee.'
Who does Dunkin's new milk policy affect?
According to the nonprofit Mercy For Animals, nearly 90% of people from regions of East Asia, 80% of Native Americans, 65% of African Americans and 50% of Latin Americans are lactose intolerant.
'Mercy For Animals applauds Dunkin' for this landmark decision,' Jennifer Behr, corporaterelations manager at Mercy For Animals, said in a statement emailed to USA TODAY. "Plant-based milk upcharges create barriers for those who can not or choose not to consume dairy, making this a win for equity and sustainability.'
By making plant-based options more affordable, Dunkin' is enabling its customers to makeenvironmentally conscious choices without extra cost, according to the nonprofit.
Jonathan Limehouse covers breaking and trending news for USA TODAY. Reach him at JLimehouse@gannett.com.
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