Starbucks is making a big change to its loyalty rewards program.
Transcript:
KELSEY BARBERIO: Starbucks is making yet another change. As CEO Brian Niccol continues to steer the company’s turnaround, he’s now making a big change to the loyalty rewards program.
Starting June 24, customers will no longer receive the 25-star bump they’re accustomed to for using a personal, reusable cup for their drinks. They’ll now receive double stars on their order, potentially resulting in fewer stars and a longer wait time for rewards. Niccol hopes the roll back will continue his efforts to help Starbucks increase its profits.
Since taking over in August 2024, Niccol has implemented a host of changes to try and win back customers. In an effort to cut costs, Starbucks said it would cut roughly 30% of its menu, and eliminate 1,100 corporate positions. The company also announced a new dress code for baristas.
In its most-recent earnings report, Starbucks revealed same-store sales dropped for the fifth consecutive quarter.
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