Starbucks Corp. (NASDAQ:SBUX) is eliminating one of its most generous loyalty program benefits as part of CEO Brian Niccol‘s broader strategy to improve profit margins and reposition the coffee chain as a premium brand.

Under the new structure, customers ordering single beverages will receive fewer total stars. A $4 medium iced coffee in a personal cup currently earns over 30 stars when paid through the Starbucks app, but will drop to approximately 15 stars next month. However, customers with larger orders benefit from the double-star system across their entire purchase. The company maintains its $0.10 discount for reusable cup usage.

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Why It Matters: This change represents Niccol’s latest effort to reduce discounts and promotions following weaker-than-expected earnings. The company reported comparable store sales down 1% globally, with U.S. sales declining 2% in the second quarter.

Photo: Ned Snowman/Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.