The decline of the ‘free’ coffee

Pret is not the only coffee shop to have watered down its loyalty scheme.

You might not have noticed, but your wallet probably has.

Costa Coffee currently runs a free loyalty card, the Costa Club, but changed the terms last August.

Customers went from needing eight stamps (or “beans”) on their loyalty cards to qualify for a free drink, to needing 10.

At the end of 2022, Starbucks announced more loyalty points would be required to redeem many of its menu items.

Customers who enrol in the chain’s Starbucks Rewards programme earn points (or “stars”) when purchasing food or drinks.

Hot coffee, tea, or baked goods now require 100 stars, doubling the previous price of 50 stars.

Experts told the BBC that less generous loyalty schemes were “not a surprise” with the rising cost of labour, packaging and the coffee itself.

The cost of arabica beans has soared in recent years because of the impact of climate change in countries such as Brazil and Ethiopia.

The industry is also still grappling with high energy and utility bills.

Richard Lim, CEO of Retail Economics, told the BBC subscription models offered value to customers, but had to be mutually beneficial to work.

“They can be good for businesses too because they produce a predictable, stable income that can rely on recurring revenue,” he said.

“But if there’s one party losing out, it won’t work, and the big question is, was this commercially viable for Pret? I suspect not.”