In their 2023 Reinvention Update and Holiday Launch presentation on November 2, the world's largest restaurant chain revealed plans to collaborate with additional companies for cross-brand rewards, following their successful partnership with Delta.
StarbucksStarbucks aims to expand its customer loyalty engagement and reach a broader audience by introducing two new partnerships for rewards programs. In their 2023 Reinvention Update and Holiday Launch presentation on November 2, the world’s largest restaurant chain revealed plans to collaborate with additional companies for cross-brand rewards, following their successful partnership with Delta.
Brady Brewer, Starbucks’ Executive Vice President and Chief Marketing Officer, announced the forthcoming alliances with a prominent financial institution and a top-tier hospitality company. These collaborations intend to extend the cherished benefits of Starbucks’ rewards to both existing and new customers.
The chain reported significant growth in its loyalty program, with 75 million active digital customers globally and a record-high engagement in the U.S., reaching 33 million active members within 90 days, alongside increased per-member spending in the fourth-quarter fiscal 2023 earnings call.
As part of its Reinvention Update, Starbucks expressed its ambition to double its global Starbucks Rewards membership within the next five years, targeting an additional 75 million members. The company plans to utilize this vast customer base to drive spending and frequency while aiming for personalized customer experiences and effortless interactions.
The company is also adopting a ghost kitchen model to efficiently meet the rising demand for delivery services. Despite only a small percentage of sales being attributed to delivery currently, Starbucks anticipates this segment to expand significantly, targeting over a billion in sales soon. By 2025, the company plans to fulfill nearly 40% of its delivery orders through delivery-only stores, aiming to ease pressure on capacity-constrained locations.
Consumer interest in ghost kitchens has grown, with almost half of consumers intrigued by this model due to its speed, ease, and convenience, according to PYMNTS’ “Connected Dining” studies. Notably, around 1 in 10 restaurant orders is currently for delivery, as indicated in PYMNTS Intelligence’s “Connected Dining: Rising Costs Push Consumers Toward Pickup” study.
