Starbucks angers caffeine addicts by watering down loyalty programme
Starbucks is facing a backlash from regular customers after a shake-up of its loyalty card programme to emphasise dollars spent as opposed to store visits.
Whilst the move might save Starbucks some cash it is not without its potential risks Deutsche Bank analyst Brett Levy observed: “The April 12 loyalty-program changeover could result in modest disruptions to U.S. near-term traffic and sales trends, in our opinion. We do not welcome this potential added risk to the story.”
This has left a bad taste in the mouths of regulars who have been tempted through Starbucks’ doors not by the aroma of freshly brewed coffee but by the lure of free food and drink after spending money in its many cafes.
How this will play out in terms of sales and traffic remains to be seen but markets have already taken a dim view of the change in policy, with Starbucks shares falling 4.2 per cent in New York yesterday.