Starbucks Cuts Loyalty Bonus for Reusable Cup Orders, Shifts to Double Star Incentive

New York (CNN) — Starbucks is making a significant change to its loyalty program in an effort to boost profits and solidify its premium brand status under CEO Brian Niccol. Starting June 24, the coffee giant will eliminate the 25-star bonus customers currently receive for bringing in a personal, reusable cup for their orders.

Instead, Starbucks will offer double stars on the entire order for customers who use a personal cup, a shift that may result in fewer stars for customers purchasing just a drink. The 25-star bonus, which was introduced in 2022, provided a quick way for customers to accumulate points toward free drinks, snacks, and merchandise. For example, customers could redeem rewards starting at 100 stars for a free coffee, tea, or snack, and higher-level items ranged from 200 to 400 stars.

Under the new system, a customer ordering a $4 medium iced coffee in a personal cup would now receive fewer stars than under the previous bonus structure. However, customers placing larger orders, such as a drink, sandwich, and snack, could see an increase in reward stars. Starbucks has confirmed that it will maintain the $0.10 discount for customers using personal cups.

This move is part of a broader strategy by Niccol to streamline operations and maximize profits amid the company’s recent underperformance. Starbucks reported weaker-than-expected earnings last month, prompting Niccol to cut back on loyalty program perks, reduce menu offerings by 30%, and even implement a policy restricting restroom use to paying customers. Additionally, he has revived company traditions like barista doodles on cups and self-serve milk and sugar stations to enhance the in-store experience.

As Starbucks continues its efforts to redefine its brand and drive profitability, loyalty members and customers will need to adjust to the revised rewards structure.

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