Starbucks lays out rewards program changes set to start in February 2023

Starbucks is shaking up its rewards program, effective February 13, 2023, though its free birthday reward and 25 star/400 star tier levels will remain unchanged.

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SEANA SMITH: All right, let's talk about my pick today, and that is Starbucks. The company is making changes to its rewards program. Some customers might not be happy because it will be tougher to score freebies with stars. Those are the points. So under the new program, let's talk about it. Members will need 100 stars to get a free hot coffee, bakery item, packaged snack, or a plastic to-go cup. That's up from 50 stars.

But there is a bit of good news in this, and iced coffee drinkers are going to be very happy because iced coffees and tea are now included in that 100 star reward. The next tier, 200 stars, that's going to get you a latte, a frappuccino, any hot breakfast item. 300 is going to get you a packaged salad, a lunch sandwich, or a protein box, as well as packaged coffee. That's down from 400 to 300.

So, Jared, some changes in here. The 50 to 100, the hot coffee, which I always get, I'm not too pleased that it's going to make me wait till I get 100 stars at this point. But we certainly know iced coffee is on trend right now. A lot of people love their iced coffees.

JARED BLIKRE: Who doesn't [INAUDIBLE]?

SEANA SMITH: That's now going to qualify.

JARED BLIKRE: So let me get this straight. They're basically-- inflation is taking a toll on all of us. And beyond that, beyond the purchase price that you pay, they're going to reduce the value of their own rewards program by up to 50%. If Jerome Powell did that, we'd be up in arms here. I can tell you. But--

SEANA SMITH: I'm up in arms about it.

JOSH SCHAFER: It's after price hikes earlier this year, too, Jared. And you're talking $1 a star, so it's 100-- you're spending $100 before you get a free coffee.

JARED BLIKRE: The math doesn't--

SEANA SMITH: Which you do quicker than you would think at Starbucks, given the prices these days.

JOSH SCHAFER: Unfortunately, we all do, right? Unfortunately, we all spend $100.

JARED BLIKRE: [INAUDIBLE] you're up there. OK, I got it.

SEANA SMITH: I don't know. Lots of questions, but I guess, business wise, it makes a sense for Starbucks at this point. All right, well, coming up, inflation has been catching up with consumers. We're going to tell you which retailers stand to benefit after the break.