Bean Counting: Starbucks Rewards Demands More Points For Free Drinks Due To Inflation

Ben ZeisloftFebruary 9, 2023

Starbucks You will receive more loyalty points to get the freebie Drinks and snacks Next week, the Company battles persistent Inflation.

Enthusiasts for the restaurant Chains will have to spend more to receive the same benefits from the Starbucks Rewards loyalty program. These changes are made in an effort to “better align the cost of product redemptions to our current pricing,” Starbucks CMO Brady Brewer commented during a recent Earnings call.

“By making that change, it will create discount efficiency which helps us to continue to grow the program while effectively managing margin,” He spoke to investors.

Starbucks Rewards participants can Redeem You can get a brewed cup of coffee, a bakery item or hot drink for 50 stars, a hot breakfast or brunch for 150 stars, a sandwich, protein pack, or salad for 200 star, and select merchandise for 400 stars. Soon, the 50-star tier will have a wide range of items. Available At 100 stars, the items at the 150-star or 200-star tiers are no longer available. The items at 200 stars and 300 star tiers are now available.

However, the redemption value for iced coffee and tea products will drop from 150 to 100 stars while that of packaged coffee will go down from 400 to 300 stars.

The changes occur months after prices for the Pumpkin Spice Latte, one of the brand’s most popular seasonal items, Increased It was 4% higher than in the previous autumn. According to a report by The Coffee Price Report, the average increase in coffee prices in the United States was 14.3% between December 2021-December 2022. Data According to the Bureau of Labor Statistics instant coffee and roasted coffee prices have increased 15.5% and 10.8%, respectively.

The overall food inflation rate was 10.4% two months ago. This is much higher than the 6.5% inflation rate. The cost of food away from home, which includes dining out at restaurants, rose 8.3% during the same period.

Restaurants have been struggling under low labor force participation for a long time. Executives have had to raise wages and pass higher costs onto their customers. According to more, there are currently 2 open jobs on the labor market for every 1 unemployed person. Data From the Bureau of Labor Statistics.

Many national fast-food chains are now trying to automate their restaurant operations to address the continuing labor shortages that continue to negatively impact employers. McDonald’s recently Created A Texas test restaurant where customers can use kiosks or a mobile app to order from a conveyor belt, rather than talking with staff. Tested A robotic chip maker in a California location.

Starbucks and other restaurants chains are also in the race to be noticed disturbances From increased crime and homelessness in urban areas. Because of safety concerns, the company announced last year that it would close down locations in cities like Seattle, Los Angeles and Portland. “It has shocked me that one of the primary concerns that our retail partners have is their own personal safety,” In leaked footage, Howard Schultz, Starbucks CEO, told employees. “And then we heard the stories that go along with it about what happens in our bathrooms, the issue of mental illness, the issue of homelessness, and the issue of crime.”