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New York
CNN
—
Starbucks is changing one of the most generous parts of its loyalty program, marking the latest effort by CEO Brian Niccol to boost profits.
Beginning June 24, the coffee chain is eliminating the 25-star bonus for customers that bring in a personal, reusable cup for drink orders. Moving forward, they will instead earn double stars on their entire order, a Starbucks spokesperson confirmed, which might result in fewer stars.
Accumulating the 25-star bonus, which began in 2022, was used by some Starbucks customers as a quick way to score a free coffee, tea or snack at the 100 point redemption level, or as a strategy to earn enough to redeem them on fancier drinks, food and merchandise for more stars, ranging from 200 to 400.
Reducing that perk is the latest way that Niccol is dialing back deals in hopes of bolstering Starbucks’ profit margins. One of his first orders of business was reducing discounts and promotions offered to loyalty members on its app to reposition Starbucks as a premium brand while also reducing the strain on employees.
The latest change means that a customer ordering just a drink will get fewer stars. For example, a beverage in a personal cup that costs $4, like a medium iced coffee, would currently earn more than 30 stars if paid through a Starbucks card on the app. Next month, that will be reduced by about half the number of stars.
However, the change benefits people with larger orders — i.e. a drink in a personal cup, a sandwich and a snack — because they would get more bonus stars. Plus, Starbucks confirmed that it’s keeping the $0.10 discount when using a personal cup.
Niccol has made many changes at the struggling company, which reported weaker-than-expected earnings report last month. He’s changed employee uniforms, overhauled the menu by cutting 30% of its offerings and instituted a new policy restricting restrooms to paying customers.
He has also brought back a company tradition of baristas doodling on cups, as well as self-serve milk and sugar stations.
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