A Montreal lawyer has accused major coffee chains Starbucks, Second Cup, and Tim Hortons of overcharging customers for plant-based milk alternatives, claiming unjust profits of tens of millions. Following a class action lawsuit filed by Joey Zukran, Starbucks and Tim Hortons recently eliminated their surcharges, while Second Cup maintains its fee. With rising consumer demand for non-dairy options, Zukran argues that the cost of plant-based milks is comparable to dairy, highlighting market trends and potential compensation for affected customers.
Lawyer Claims Major Chains Overcharged for Plant-Based Drinks
A Montreal lawyer has alleged that Starbucks, Second Cup, and Tim Hortons have excessively profited by charging customers a surcharge of 50 to 80 cents for plant-based milk alternatives, resulting in tens of millions of dollars in unjustified earnings. According to Joey Zukran, who filed a class action petition in late 2024, the cost of soy, almond, or oat milk has been comparable to or even less than traditional dairy for some time.
Charges Removed Amid Legal Action
Zukran questions why these popular coffee chains enforced an additional fee for plant-based options. In an interview, he pointed out that both Starbucks and Tim Hortons have recently eliminated their surcharges, indicating their acknowledgment of the issue. “They wanted to have their cake and eat it too; they took advantage of this cash cow to line their pockets,” Zukran stated.
The amounts involved in this legal dispute are significant, with Zukran estimating tens of millions of dollars at stake from December 30, 2021, to November 7, 2024.
Starbucks made headlines on November 7 by announcing the removal of its $0.80 surcharge across all Canadian and American locations. The company noted that substituting dairy with non-dairy alternatives is the second most requested modification after adding extra espresso shots. Meanwhile, Tim Hortons has also dropped its $0.50 surcharge since the start of 2025, shortly after Zukran’s lawsuit was filed. The lawyer asserts that there is a clear connection between the lawsuit and the removal of these charges.
Current Market Trends and Participation Information
Despite the changes at Starbucks and Tim Hortons, Second Cup continues to enforce the $0.80 surcharge. Recent statistics reveal that nearly half of customers now opt for non-dairy alternatives, with approximately 44% of the population being lactose intolerant, as cited by Zukran from a study published in the *Journal of the Canadian Association of Gastroenterology*.
This shift in consumer preference has led to a decrease in prices for plant-based drinks. For instance, a 1.89-liter container of unsweetened soy milk from the Silk brand is priced at $4, translating to $0.21 per 100 ml, while a 2-liter container of 2% cow’s milk from the Québon brand costs $4.57, or $0.23 per 100 ml. Zukran emphasizes in his lawsuit that the wholesale cost of non-dairy substitutes mirrors that of traditional milk.
Starbucks reported a 2% decline in sales during its 2024 fiscal year, despite achieving global revenues of $36.2 billion. In contrast, Tim Hortons, under Restaurant Brands International, saw a 2.3% sales increase in comparable stores during its latest quarter. Second Cup, having been acquired by the Quebec firm Foodtastic in 2021, is striving to maintain its presence in an increasingly competitive market.
Quebec residents who incurred a surcharge at any of these three chains during the specified time frame can visit the LPC Avocats website to participate in the class action.