NEW YORK (AP) – Starbucks is changing the terms of its rewards program so that people who just get a regular cup of coffee will have to spend significantly more to earn a freebie.
The Seattle-based coffee chain says its loyalty program will award stars based on the dollars spent starting in April. Currently, people earn a star for each transaction, regardless of how much they spend, and get a free food or item of their choice after earning 12 stars.
People will now have to earn 125 stars for a free item, with each dollar spent being worth two stars – meaning they have to spend $62.50 to get their free item. That means that people who now spend around $5 or less per visit are losing out.
For instance, someone who regularly gets a $2 regular drip coffee would currently earn a free item after spending around $24 over 12 visits. Someone who gets a large latte for $4.45 currently spends around $53.40 over a dozen visits before getting a free item.
Still, Starbucks Corp. says the change is the No. 1 request among loyalty program members and predicts it will lead to higher spending by customers eager to earn more stars.