Starbucks curtails consumer rewards
January 31, 2023
Starbucks plans to siphon more money from customers after they announced a drastic increase in the number of stars required to redeem free merchandise, effective Feb. 13.
Now is the time to cash in all withstanding points, as the redemption of free drinks and snacks alike is about to take a pricey turn. Hot brewed coffees and teas which previously cost 100 stars will ring up at 150, 50-star bakery items at 100, 150-star hand-crafted beverages at 200, and 200-star packaged lunches at 300.
In compensation, not all beloved aspects of the Starbucks Rewards Program are set on a course to devastate consumers’ wallets. In fact, 100 stars can soon be redeemed for a free iced coffee or tea rather than the previous price of 150 stars, according to CNN.
Despite significant changes, some features of the popular redeeming system will remain the same. Consumers will continue to earn one star per dollar spent on any regular payment method through the Starbucks app and two stars for every dollar spent on a Starbucks card.
Although Starbucks recorded a 16% yearly increase in loyalty program users, they remark this rewards escalation as a necessity.
According to Axios, “We occasionally need to make changes to ensure the long-term sustainability of the Starbucks Rewards program and to meet the changing needs of our members,” a Starbucks spokesperson said.
Not all hope is lost for Starbucks aficionados who hope to not break the bank when they grab their morning coffee. Rewards members can still receive a free Birthday Reward, discounts for the use of reusable cups, and free in-store refills. Promotions like these have built Starbucks a devout following on the basis of free products and quality customer service.
According to Today, “We know from our experience that when customers join our rewards program, their total spend with Starbucks increases meaningfully,” former Starbucks CFO, Patrick Grismer said.
Once Feb. 13 hits, the 15% cash back earned on 50-star items will be reduced to a maximum of 4.7%, which has led customers to rush to their local Starbucks to collect as many free goodies as they can.
With these new rates and Valentine’s Day around the corner, caffeine enthusiasts must either pad their wallets or look elsewhere if they hope to surprise their Valentine with their favorite drink on Feb. 14.