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Starbucks Removes Canola Oil from US Menu to Enhance Health Appeal
ByAinvest
Tuesday, Jul 8, 2025 1:14 am ET1min read
Starbucks plans to remove canola oil from its US menu to appeal to health-conscious customers. The company will phase out canola oil from popular items and introduce new dishes made with avocado oil. This move comes amid declining sales and CEO Brian Niccol's efforts to revamp the brand. Starbucks earns 74% of its revenue from the US market, making menu changes crucial to its success.
Title: Starbucks to Phase Out Canola Oil from US Menu to Appeal to Health-Conscious CustomersStarbucks is undertaking a significant change to its menu by phasing out canola oil from its food offerings across the United States. The coffee chain has committed to eliminating canola oil from popular items like egg white and roasted red pepper bites, and will introduce new dishes made with avocado oil. This move is part of a broader brand revamp aimed at reversing declining sales and appealing to health-conscious customers [2].
The initiative comes as Starbucks is facing intense competition from regional chains such as Dutch Bros Coffee, 7 Brew, and Scooter's Coffee. The company has reported five straight quarters of declining sales at U.S. stores open at least a year, and CEO Brian Niccol has been working to return Starbucks to its "community coffeehouse" roots. The Hamptons stores were the first to undergo a redesign, with plans to update up to 1,000 stores in the next year [1].
The decision to remove canola oil aligns with the company's efforts to better align its menu with health priorities. In June, Niccol met with US Health and Human Services Secretary Robert F. Kennedy Jr. to commit to this initiative. The company is also investing heavily in improving the in-store experience, including increasing staffing and adding features like power outlets and ceramic mugs [1].
This move is crucial for Starbucks, as the company earns 74% of its revenue from the US market. By focusing on health-conscious customers, Starbucks aims to attract and retain a broader customer base, potentially boosting sales and market share. The company is expected to invest an estimated $1 billion annually to add one to three employees per company-owned store in the United States [1].
References:
[1] https://www.newsday.com/business/hamptons-starbucks-redesign-2025-d2jgxlfp
[2] https://uk.investing.com/news/stock-market-news/starbucks-plans-to-remove-canola-oil-from-us-food-menu--bloomberg-93CH-4159762
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