Companies are reining in customer rewards programs. Here's why.

“While we’re assessing our own personal expenses, so are businesses,” Marshal Cohen, chief industry advisor of Circana and retail expert, told The Associated Press. “Businesses have to look and say, ‘Are these programs working? Are they working to full capacity? ... is there another way of doing this that wouldn’t cost us as much money?’”

Dunkin’ argued that its new rewards program would give its customers more flexibility and a larger variety of food and drink options — and in a statement to The Associated Press last week, the company said the new program lets “members celebrate their birthday even longer,” pointing to the three-day window within which customers can triple their loyalty points on birthday purchases.

Red Robin, which said it began the dine-in only and $4.99 minimum purchase requirements to its free birthday burger “to maintain the integrity of the promotion” and give guests “the best possible experience” by celebrating in restaurants — also introduced a half-birthday treat in 2023 “as an added gesture of appreciation.”

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