- Chipotle just raised the number of points needed to get a free burrito as a rewards member.
- An expert advises customers to use rewards soon after getting them before they lose value.
Chipotle just raised the prices of rewards and Dunkin just revamped their rewards system to make it harder to get a free drink.
But there's a way to get the most out of your rewards points.
"It usually makes sense for rewards to be redeemed quickly," president and analyst at Kalinowski Equity Associates Mark Kalinowski told Insider. As a fast food expert and rewards user himself, Kalinowski recommends customers use rewards shortly after receiving them to get the most value, rather than sitting on them for months.
In the case of Chipotle, the fast casual chain just raised the price of a free entree reward from 1400 points to 1625 points. Customers get 10 points for every $1 they spend, so they will now be eligible for a free entree after spending $162.50. Put another way, a customer who had 1400 rewards points with Chipotle could use them to get a burrito one day, but the next day when the price went up, they'd have to spend an additional $20 to earn enough points for the same burrito.
A similar situation happened when Dunkin rolled out its Dunkin Rewards system this fall. With Dunkin' Perks, the previous program, customers earned five points for every dollar they spent, reaching a free drink at 200 points or $40 of spend. Under Dunkin' Rewards, the new system, each dollar spent earns 10 points, meaning each point carried over by a customer was suddenly worth less.
Additionally, there are now different options for how points can be redeemed. Coffee got a bit more expensive, at 500 points, or about $50 of spend compared to the previous $40, while specialty drinks will now cost 700 points, or $70 of spend.
Another reason to use rewards quickly, Kalinowski said, is that points can expire with some programs. This is common in rewards programs across the industry, but different rewards programs have different rules. For example, McDonald's points and Starbucks stars both expire after six months, and Wendy's points expire after one year.
Companies like Chipotle are recalibrating rewards values as inflation levels reach a 40-year high, raising costs of commodities and labor.
"It wouldn't surprise me if there were tweaks by other big restaurant concepts," to their rewards programs, Kalinowski said. Those changes could lead to similar price increases that makes individual points less valuable. In that case, it's wise to use rewards sooner rather than later in case they become less valuable over time.
Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.