Saturday, October 4, 2025

Rewards programs

Remember when companies had programs that rewarded loyalty?  When companies wanted you to come in and use their product, buy their food, etc?  And the rewards programs were all about bringing you back?

So quaint.  Now, its all about spend!  

For my discussion, I'm going to talk about a few food loyalty programs.  

Starbucks at one point gave you points for buying drinks and food.  And the exchange was pretty good.  You could earn a free drink or food item after a few visits.  But then they switched it, so the points were based on how much you spent.  Then they increased the number so you had to spend more to get anything. And they added expiration to points so that you HAVE TO spend more if you want that free item.

Several companies changed from a simple means of getting points with a purchase to having to store a credit card in their app, and when you buy something using that card they'll give you points.  Which I suppose may be "easier" in a way, but isn't very consumer friendly.  And I'd rather not store a credit card in an easy to hack location, thank you.

Some, like Red Robin, used to have a loyalty program that would give you a free meal on your birthday.  It was good on anything on the menu and could be used in-restaurant or for takeout.  Then, they switched it to dine in only. Then, they added a minimum spend to get the reward.  Then, they added a requirement that you have to spend $10 during the year to get the same reward.  And I see now that they no longer have a free meal, its a free shake.  The value proposition went away, completely.

And then there was this change to the Wetzel's program .It was  previously a free pretzel for your birthday. And the email still says that it is. Except that its actually a $5 credit, and pretzels are $7.  

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