3 weeks ago
Starbucks raises loyalty rewards spend to £60 for free coffee
Imagine you collect stars every time you buy a drink at Starbucks.
When you save up enough stars, you can swap them for a free coffee or a free cake.
Soon, it will take more spending to earn a free treat.
A customer will need to spend £60 to get a free barista-made drink, instead of £50.
A free pastry or cake will need £35 of spending, up from £30.
The new rules start on September 3.
Starbucks says it is doing this so its rewards programme can keep working for a long time.
Starbucks is not the only coffee shop making rewards pricier.
Pret a Manger and Leon have also changed their special deals.
Some coffee experts say shops are finding it harder to afford generous rewards, and customers may wonder if collecting stars is still worth it.
From September 3, Starbucks customers will need to spend £60, up from £50, to earn a free barista-made drink such as a cappuccino or frappuccino.
The spending threshold for a free pastry or cake rises from £30 to £35, making some rewards up to 20 per cent more expensive to earn.
Starbucks said the change ensures its loyalty programme continues to deliver value over the long term, with no change to how members earn stars.
Other coffee chains have also scaled back loyalty offers: Pret a Manger reshaped its subscription model and Leon scrapped its Roast Rewards programme.
Industry executives reportedly said the moves reflect difficult economics facing hospitality businesses and questioned whether loyalty schemes still offer enough value.
- Who
- Starbucks and its customers, with industry figures Jeffrey Young (Allegra) and Scott Martin (Unity Coffee) among those commenting on the changes.
- What
- Starbucks is raising the spending required to earn free rewards, including a £60 threshold for a free barista-made drink (up from £50) and £35 for a free pastry or cake (up from £30).
- Where
- Starbucks locations (prices are quoted in pounds sterling).
- When
- From September 3.
- Why
- Starbucks says the changes ensure the programme continues to deliver value over the long term, while observers note the difficult economics facing hospitality businesses.
Starbucks' position
Customer and industry skepticism
Rewards value
Starbucks' position
Changing the stars required for certain rewards ensures the programme continues to deliver value over the long term, with no change to how members earn stars and continued investment in rewards.
Customer and industry skepticism
Repeated changes make customers feel the value of their rewards is falling, and raising spending thresholds could make the programme feel less attractive.
Are loyalty schemes worthwhile?
Starbucks' position
Loyalty programmes are designed to encourage customers to keep returning and remain a worthwhile investment for the company.
Customer and industry skepticism
Some industry executives question whether loyalty schemes offer enough value at all, suggesting customers might prefer transparent pricing without a rewards programme.
Key facts
- Free barista-made drink threshold
- £60 (up from £50)
- Free pastry or cake threshold
- £35 (up from £30)
- Effective date
- September 3
- Maximum reward cost increase
- Up to 20 per cent more spending
- Starbucks' stated reason
- Ensure the programme continues to deliver value over the long term
- Pret a Manger subscription history
- £20/month in 2020, £30/month in 2023, now £5/month for up to five half-price coffees daily
- Leon Roast Rewards
- Launched May 2024 at £25/month; scrapped at the end of 2025
Quotes
Unknown
unnamed quoted remark
“Hypothesis?: Starbucks is thinking about how to spend a bit more than 20 percent?”
easterneye.biz
Sources
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