Regular Starbucks customers will no longer have such easy access to Starbucks Rewards. The Starbucks Rewards Program has taken a turn with Brian Niccol, the new CEO, coming on board. Since June 24, Starbucks has cut down the 25 stars offered for customers who brought in their reusable cups for drink orders to just 2 stars, although they’ll still get a 10-cent discount. Niccol stated to CNN that this is a restructuring to reposition the brand. It’s a marketing strategy aimed at attracting more premium customers, and they also want to give their coffee shops a more sophisticated vibe. Do you think Starbucks customers will be on board with these new changes?
Starbucks
More commonly known as Starbucks, Starbucks Corporation is a multinational chain of coffeehouses and roastery reserves. Founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker, it is currently headquartered in Seattle, Washington. It began its journey as a wholesale coffee bean supplier and has successfully evolved into its current state. The company operates more than 36,000 locations worldwide. Its presence is not limited to North America, as establishments can be found in 83 different countries.
It is considered one of the largest coffee chains in the world. Its offer is not limited to coffee, but is much broader. On its menu, you can find a wide variety of products such as hot and cold drinks, pastries, sandwiches, salads, and even gluten-free options. For coffee lovers who buy coffee at Starbucks, they also offer coffee beans and capsules to prepare it at home. They also have their own merchandise section, with reusable cups and mugs.
Starbucks Rewards Program
Like nearly all major chains, Starbucks has its own Starbucks Rewards Program. It is the best way to encourage customer loyalty and attract new and potential customers. So far, the benefits offered by the brand have been considerable. If you visited one of the establishments with your own reusable cup, you would receive a reward of 25 stars and a discount of 10 cents off the price of your beverage. Another benefit was available for purchases over $5, where you could earn 30 stars redeemable for a free drink or a merchandise product. Sounds quite appealing, doesn’t it?
Rewards have changed
However, all the previously described advantages have disappeared. Since June 24, customers who bring their own reusable cup no longer enjoy the same bonuses. Currently, they only earn 2 stars for every dollar spent, compared to 25 before. Nevertheless, they will still receive the 10-cent discount on their order. On the other hand, free drinks and merchandise for purchases of $5 have also disappeared. Now they have to spend a minimum of $15 to earn the same number of stars (30 stars).
Why have this changes been made?
The changes implemented by the Starbucks chain have not gone unnoticed at all. Consumers are wondering why they have reduced profits in this way and, above all, who is responsible. His name is Brian Niccol and he is the CEO of the chain. Niccol explained these changes on CNN, where he declared that the intention is to “reposition Starbucks as a premium brand while also reducing pressure on employees.” According to the company’s numbers, sales and revenue figures have declined compared to the previous year, which is why they have decided to take action. Niccol’s intention is to redirect Starbucks’ offerings towards a more premium audience, giving its establishments a more sophisticated touch.
More changes are coming
The CEO’s proposals have not only been about modifying the Rewards Program. Niccol has also focused on reducing the product range, as well as changing the employees’ uniforms. From now on, the restrooms will be exclusively for customers who make a purchase. As a new feature, he has chosen to bring back self-service points for milk and sugar, as well as the inclusion of specialized baristas in coffee and design. What do you think about these new changes?
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