Starbucks is making two big changes to its Free Refill policy.
And I'm not certain these changes will be a net positive for the business.
Here's what's changing, effective January 27, 2025:
1. You no longer have to be a Starbucks Rewards member to get a free drink refill;
2. To get a free refill, Starbucks Rewards member or not, you must use either the restaurant's "for here ware" or a reusable cup you bring into the restaurant yourself.

I'm not a fan of these two changes.
First, not requiring people to be Starbucks Rewards members to get free refills is one less reason to become a Starbucks Rewards member.
And that's bad for Starbucks. Because if you don't have an incentive to become a Starbucks Rewards member, you probably won't sign up for the program. And if you don't do that, Starbucks can't collect any data on you when you visit: which restaurants you're visiting, how often you're visiting each restaurant, and what you're buying when you visit to name just a few data points that are collected every time Starbucks Rewards members scan their card.
The data Starbucks collects about customers through its Starbucks Rewards loyalty program is a huge business advantage for the company: it helps inform promotions, personalize offers, and ultimately increase sales. Translation: giving people any reason NOT to join the loyalty program is a curious policy change, and while I haven't been a Starbucks shareholder for years, if I were one today I wouldn't be happy about this questionable business decision.
The second reason I don't like this policy change is much more personal: I don't like using "for-here ware" when I visit Starbucks (even if I plan to sit in the cafe and enjoy my beverage) because hot beverages get cold faster without a lid capturing the heat.
Starbucks is supposed to be all about the Starbucks Experience, but from now on, my in-cafe experience will involve cold coffee.
Sure, I can bring along an insulated coffee tumbler when I visit a Starbucks cafe, and if I'm driving to my local Starbucks, I might do that.
But when I'm downtown without my car, carrying around a tumbler as I walk to and from meetings throughout the city is just one extra thing to carry.
And if I wanted to bring a tumbler downtown, I'd make myself a coffee at home, forgoing the need to visit Starbucks at all.
Will this policy change encourage more Starbucks customers to bring reusable cups or use for-here-ware to get their free refills?
Or will it encourage them to start visiting other coffee shops?
Time will tell.

Comments