Starbucks makes big change to loyalty rewards program

Customers might not be happy.

Transcript

00:00Starbucks is making yet another change. As CEO Brian Nickel continues to steer the company's

00:05turnaround, he's now making a big change to the loyalty rewards program. Starting June 24th,

00:10customers will no longer receive the 25-star bump they're accustomed to for using a personal

00:14reusable cup for their drinks. They'll now receive double stars on their order, potentially

00:18resulting in fewer stars and a longer wait time for rewards. Nickel hopes the rollback will

00:22continue his efforts to help Starbucks increase its profits. Since taking over in August 2024,

00:27Nickel has implemented a host of changes to try and win back customers. In an effort to cut costs,

00:32Starbucks said it would cut roughly 30% of its menu and eliminate 1,100 corporate positions.

00:37The company also announced a new dress code for baristas. In its most recent earnings report,

00:42Starbucks revealed same-store sales dropped for the fifth consecutive quarter.

00:46That'll do it for your Daily Briefing. From New York City, I'm Kelsey Barberio with The Street.