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

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Starbucks seems to be one of those companies that has pricing power. It’s something we’ve discussed on numerous occasions where US companies are able to take input cost increases and pass them along to customers and maybe even a little bit more because the brand is so strong. Starbucks seems like a dumb company in this space. It added about 6% to its total price. Uh spec Over the last 12 months while 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 gains than the expected. Starbucks had fourth-quarter revenues of about 8.4 billion that beat the streets and had a bottom line of 81 cents a share. This whole scene to make up for the ongoing slump that is taking place in China. And this is very important because it is, of course, the fastest growing market for the biggest coffee chain in the world. Comparable sales in China were down about 16% and down 44% in the previous quarter. The company is relatively optimistic that the covid restrictions that are keeping people at home will ease relatively soon and they will work to point out that mobile and direct orders have accelerated as people change their shopping habits. Starbucks appears to have a solid foundation. The stock rose steadily in Friday’s trading and they are sticking to their new recent profit guidance for 2023 and beyond and say they will catch up comfortably. So I think this is a *** 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. As of Feb. 13, members will need 100 stars – Starbucks’ term for points – to get a cup of hot or iced coffee or tea, good, a boxed 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 (such as a bag of beans). Members currently only need 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 shop. If they use a Starbucks Card, a 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 US and Canada to the changes on Wednesday via email and the Starbucks app. The new tiers are described on the Starbucks Rewards terms of use website. 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.”for Starbucks,” interim CEO Howard Schultz said during a call with analysts in November. In the three months ended Oct. 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. with Delta to enable rewards program members to earn airline miles. And earlier this month, it launched a beta version of Starbucks Odyssey — a rewards program extension that allows users to earn NFTs. While rewards members can be excited about the benefits, they are also quick to criticize companies for making changes. fans were quick to complain about the changes the brand announced in October, and Starbucks customers are already complaining online about the new levels.

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

Starting Feb. 13, members will need 100 stars – Starbucks’ term for points – to get a 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 (such as a bag of beans).

Members currently only need 50 stars to get a hot tea, coffee or pastry 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 shop. If they use a Starbucks Card, a 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 US and Canada to the changes on Wednesday via email and via the Starbucks app. The new tiers are described on the Starbucks Rewards terms of use website. Insider first reported the changes to the system on Tuesday after seeing an internal memo.

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

“The rewards program … is generating significant revenue for Starbucks,” interim CEO Howard Schultz said during a call with analysts in November. In the three months ended Oct. 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 cafe chain partnered with Delta to allow program members to earn airline miles. And earlier this month, it launched a beta version of Starbucks Odyssey – a rewards program extension that allows users to earn NFTs.

While rewards members can be excited about the benefits, they are also quick to criticize companies for making changes.

Dunkin’ fans were quick to complain about changes announced by the brand in October, and Starbucks customers are already complaining online about the new levels.

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