Starbucks is updating its rewards program, making it harder for customers to collect “star” or point freebies in 2023.
Why the change? Starbucks told Yahoo Finance, “We need to make changes from time to time to ensure the long-term sustainability of the Starbucks Rewards program and to meet the evolving needs of our members.”
Beginning February 13, Award Members will need 100 Stars instead of 50 to receive a free hot or iced coffee, tea, baked goods, pre-packaged snack or plastic cup to go. Previously, iced coffee or tea was not included in this tier.
The next tier is 200 stars, previously 150, to score a crafted drink such as a latte, frappuccino, or other hot breakfast product. To round out the updates, 300-star customers can get a boxed salad, lunch sandwich, or protein box. The 300-star tier will also include packaged coffee (a bag of whole beans to brew at home), which was previously 400 stars.
For members, this is the first structural change since 2019.
“Untapped Opportunities” to expand the rewards program
The changes come after the company announced earlier this year that it had increased prices by about 5% over a 12-month period. Interim CEO Howard Schultz said on the fourth-quarter earnings call in early November, “Our convenience channels Drive-Thru, Mobile Order & Pay and Delivery accounted for 72% of our total revenue.” He added the company expects that Mobile, Digital, Loyalty and Delivery “continue to grow and advance” the business.
An example of Starbucks’ digital push: This week, Yahoo Finance discovered a location in Long Island, New York (pictured above) dedicated exclusively to mobile ordering, drive-thru or pickup. No in-person orders will be taken, instead customers must order through the app and then grab their drinks and baked goods from the ledge once they’re ready. Drive-Thru is also an option for customers.
The free birthday drink stays
Customers using a Starbucks card in the app will continue to earn 2 stars for every dollar spent, with the opportunity to earn “Bonus Stars” on games and personalized offers on “Double Star Days”. Members can continue to take advantage of the reusable cup benefit, which offers Starbucks Rewards members 25 stars. This program was restarted earlier this year. Customers can also grab free refilled hot or iced coffee and tea in stores.
The story goes on
And the free birthday reward is here to stay. Schultz added in his fourth-quarter earnings call, Rewards members “arrived a record 55% of bids in our U.S. corporate operated stores in Q4…We have significant untapped opportunities to grow our rewards program in a unique way.” “
This decision to keep this promotion for Starbucks rewards members comes after Dunkin’ faced backlash for scrapping the free drink offering for customers; birthdays Dunkin’ replaced it with “3X POINTS” for all purchases made the day before, on, and after the customer’s birthday.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected].
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