Starbucks rewards are changing
My most recent trip to a coffee shop was when I went to Starbucks on January 13th, and it may have been my last … because if you haven’t heard already, the Starbucks rewards program is changing.
With the current rewards program, you earn one star for each transaction – regardless of how much you spend. Once you reach 12 stars, you earn a free drink or food item of your choice. I’m a plain coffee drinker, so each trip to Starbucks only cost me $2 for a tall coffee. And after 12 trips, I’d typical spend my reward on a more expensive drink – like a latte or frappuccino – or even a breakfast sandwich when I wanted a little treat.
With the new changes, the amount of stars you earn is determined by how much money you spend – so for every $1 spent you’ll be getting 2 stars. And you will need to collect 125 stars to earn a free item. That means it would cost about $62 to earn a free Starbucks reward that previously cost me $24. Not cool.
If you’re consistently spending $5 each time you go to Starbucks, then the changes don’t affect you much (because you were already spending $5 x 12 = $60). And if you were buying $7 sandwiches or anything else with a bigger price tag, then you’ll get your freebie even sooner than before.
I get that Starbucks rewards program will benefit people who spend a lot each time they go. But that’s not me. So now there’s really no incentive to go to there over another coffee shop anymore. And actually, it kind of makes my 2016 goal of not going to coffee shops (for anything other than socializing) a lot easier. So, see ya Starbucks. It was fun while it lasted.
What do you think of the changes to the rewards program?
Author: Krystal Yee
I’m a personal finance blogger and marketing professional based in Vancouver. I’m a former Toronto Star (Moneyville) columnist, author of The Beginner’s Guide to Saving and Investing, and co-founder of the Canadian Personal Finance Conference. When I’m not working, you can usually find me running, climbing, playing field hockey, or plotting my next adventure.