No more free coffee on your birthday? Companies rein in customer rewards programs — here's why

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Looking for free coffee or birthday burgers? Some companies are becoming more stingy with loyalty rewards, and customers are taking notice.

U.S. job openings slipped in May but remained at levels high enough to show the American labor market remains resilient in the face of sharply higher interest rates.

For Sephora customers enrolled in its Beauty Insider birthday rewards, for example, they can still claim their free gift in person with no minimum purchase. But it costs the company money to ship products sold online, noted Leora Lanz, assistant dean of academic affairs and assistant professor of practice at Boston University’s School of Hospitality Administration.Despite consumer pushback, some chains have argued adjustments to rewards programs simply reflect how customers behave.

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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