Why that "free" Starbucks drink is about to cost you more

Starbucks seems to be one of those companies that has pricing power. It's something that we've discussed on *** number of occasions where American companies are able to take input cost increases and pass them on to customers and maybe even *** little bit more because the brand is so strong. Starbucks seems to be *** company in that space. It added about 6% to its overall price. Uh spec Over the past 12 months whilst at the same time same store sales in the US are up about 11% and in fact traffic is very close to pre pandemic levels and that of course drove stronger than expected earnings essentially. Starbucks had fourth quarter revenues of around 8.4 billion that beat the street and they had *** bottom line of 81 cents per share. All of that scene to offset the ongoing slump that it's seeing in china. And that's really important because it's of course the fastest growing market for the world's biggest coffee chain, comparable sales in china were down about 16% they were down 44% in the prior quarter. The company is relatively optimistic that the covid restrictions which are keeping people at home are going to abate relatively soon and they will work Keen to point out that mobile and drive through orders have accelerated as people change their buying habits. Starbucks appears to be on solid footing. The stock is up firmly in Friday trading and they're holding on to their recent new profit guidance for 2023 and beyond and they say they're going to meet those comfortably. So I think this is *** company that is transitioning well into its new leadership next year.

Starbucks is making changes to its rewards program, requiring members to spend more to earn some popular freebies.Starting February 13, members will need 100 stars — Starbucks' term for points — to get one cup of hot or iced coffee or tea, a baked good, a packaged snack or a to-go cup. Members will need 200 stars to get a latte or Frappuccino or a hot breakfast item, and 300 for a salad, lunch sandwich, protein box or packaged coffee (like a bag of beans).Currently, members need only 50 stars to get a hot tea, coffee or bakery item, 150 for a latte, hot breakfast item or parfait and 200 for a salad, lunch sandwich or protein box. Program members earn stars when they make purchases. If they use a Starbucks Card, one dollar spent translates to two stars. For credit card or other payment methods, members earn one star per dollar.Starbucks said it alerted rewards members in the U.S. and Canada to the changes on Wednesday, via email and through the Starbucks app. The new tiers are outlined on the Starbucks Rewards terms-of-use site. Insider first reported the changes to the system on Tuesday after seeing an internal memo.Rewards programs are an important way for companies to create loyal customers, learn more about their preferences and inspire repeat purchases."The rewards program ... is generating significant revenue for Starbucks," said interim CEO Howard Schultz during a November analyst call. In the three months ending on October 2, the number of active Starbucks rewards members jumped to 28.7 million, up 16% year-over-year.Starbucks has been experimenting with its rewards program in recent months.In October, the coffee chain started partnering with Delta to let rewards members earn airline miles. And earlier this month, it launched a beta version of Starbucks Odyssey — an extension of the rewards program that allows users to earn NFTs.While rewards members may be enthusiastic about benefits, they're also quick to criticize companies for making changes.Dunkin' fans swiftly bemoaned changes the brand announced in October, and Starbucks customers are already complaining online about the new tiers.

Starbucks is making changes to its rewards program, requiring members to spend more to earn some popular freebies.

Starting February 13, members will need 100 stars — Starbucks' term for points — to get one cup of hot or iced coffee or tea, a baked good, a packaged snack or a to-go cup. Members will need 200 stars to get a latte or Frappuccino or a hot breakfast item, and 300 for a salad, lunch sandwich, protein box or packaged coffee (like a bag of beans).

Currently, members need only 50 stars to get a hot tea, coffee or bakery item, 150 for a latte, hot breakfast item or parfait and 200 for a salad, lunch sandwich or protein box.

Program members earn stars when they make purchases. If they use a Starbucks Card, one dollar spent translates to two stars. For credit card or other payment methods, members earn one star per dollar.

Starbucks said it alerted rewards members in the U.S. and Canada to the changes on Wednesday, via email and through the Starbucks app. The new tiers are outlined on the . Insider first on Tuesday after seeing an internal memo.

Rewards programs are an important way for companies to create loyal customers, learn more about their preferences and inspire repeat purchases.

"The rewards program ... is generating significant revenue for Starbucks," said interim CEO Howard Schultz during a November analyst call. In the three months ending on October 2, the number of active Starbucks rewards members jumped to 28.7 million, up 16% year-over-year.

Starbucks with its rewards program in recent months.

In October, the coffee chain started partnering with Delta to . And earlier this month, it launched a beta version of Starbucks Odyssey — an extension of the rewards program that .

While rewards members may be enthusiastic about benefits, they're also quick to criticize companies for making changes.

Dunkin' fans changes the brand announced in October, and Starbucks customers are already complaining online about the new tiers.

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