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Friday 22 November 2024
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Starbucks tightens rewards program rules

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MILAN – Starbucks is introducing a new mechanism for its rewards program in North America. People who just get a regular cup of coffee will have to spend significantly more to earn a free item. The coffee chain says its new loyalty program, rebranded as simply Starbucks Rewards, will award stars based on the dollars spent starting in April.

Customers will earn two stars per dollar spent, receiving a reward after earning 125 stars – meaning they have to spend $62.50 to get their freebie.

That’s more complicated math than that of the previous program, which required just 12 stars, the equivalent of 12 visits, to get a free drink or food.

The widely anticipated change from the Seattle-based company comes as airlines and other companies have been tweaking their rewards programs to make them generally less generous to consumers.

Loyalty members spend three times as much as non-members, and help push up profit, according to the company.

Last month, Starbucks said it had 11.1 million loyalty program members in the U.S., up 23 percent from the previous year.

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