diff --git a/.changeset/rich-crabs-end.md b/.changeset/rich-crabs-end.md
new file mode 100644
index 000000000..4bf54e9b9
--- /dev/null
+++ b/.changeset/rich-crabs-end.md
@@ -0,0 +1,7 @@
+---
+'skuba': patch
+---
+
+**template:** Default Docker Compose image to empty string
+
+This suppresses Docker Compose CLI warnings and errors when running outside of Buildkite.
diff --git a/template/express-rest-api/docker-compose.yml b/template/express-rest-api/docker-compose.yml
index 345104342..dfb1f6a86 100644
--- a/template/express-rest-api/docker-compose.yml
+++ b/template/express-rest-api/docker-compose.yml
@@ -2,7 +2,7 @@ version: '3.7'
 
 services:
   app:
-    image: ${BUILDKITE_PLUGIN_DOCKER_IMAGE}
+    image: ${BUILDKITE_PLUGIN_DOCKER_IMAGE:-''}
     init: true
     volumes:
       - ./:/workdir
diff --git a/template/greeter/docker-compose.yml b/template/greeter/docker-compose.yml
index 345104342..dfb1f6a86 100644
--- a/template/greeter/docker-compose.yml
+++ b/template/greeter/docker-compose.yml
@@ -2,7 +2,7 @@ version: '3.7'
 
 services:
   app:
-    image: ${BUILDKITE_PLUGIN_DOCKER_IMAGE}
+    image: ${BUILDKITE_PLUGIN_DOCKER_IMAGE:-''}
     init: true
     volumes:
       - ./:/workdir
diff --git a/template/koa-rest-api/docker-compose.yml b/template/koa-rest-api/docker-compose.yml
index 345104342..dfb1f6a86 100644
--- a/template/koa-rest-api/docker-compose.yml
+++ b/template/koa-rest-api/docker-compose.yml
@@ -2,7 +2,7 @@ version: '3.7'
 
 services:
   app:
-    image: ${BUILDKITE_PLUGIN_DOCKER_IMAGE}
+    image: ${BUILDKITE_PLUGIN_DOCKER_IMAGE:-''}
     init: true
     volumes:
       - ./:/workdir
diff --git a/template/lambda-sqs-worker/docker-compose.yml b/template/lambda-sqs-worker/docker-compose.yml
index ff7fd64a5..2339c6e86 100644
--- a/template/lambda-sqs-worker/docker-compose.yml
+++ b/template/lambda-sqs-worker/docker-compose.yml
@@ -2,11 +2,11 @@ version: '3.7'
 
 services:
   app:
-    image: ${BUILDKITE_PLUGIN_DOCKER_IMAGE}
     environment:
       - BUILDKITE_COMMIT
       - ENVIRONMENT
       - VERSION
+    image: ${BUILDKITE_PLUGIN_DOCKER_IMAGE:-''}
     init: true
     volumes:
       - ./:/workdir