- Dunkin' is rebranding its rewards program under the new name Dunkin' Rewards.
- Customers will need to spend more money to earn free premium drinks like lattes and cold brew.
Dunkin' is relaunching its rewards system under a new name, the chain first announced in August. It's part of a trend of changing rewards systems across the industry, from Chipotle to Starbucks.
The coffee chain is trading in Dunkin' Perks for the new Dunkin' Rewards, which is only available in California so far, with plans to expand to the rest of the US by the end of 2022.
Understanding the changes requires some math. 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, there are different options for how points can be redeemed. There are new chances to redeem smaller rewards like an espresso shot, munchkins, or hash browns for just 150 points, or $15 of spend.
The deals don't look as good when it comes to drinks. Coffee got a bit more expensive, at 500 points, or about $50 of spend compared to the previous $40. More premium drinks are far more expensive, though. Crafted drinks, including espresso, cold brew, and refreshers, will now cost 700 points, or $70 of spend. Signature lattes and frozen drinks are the most expensive at all at 900 points, or $90. Under Dunkin' Perks, any of these drinks could be redeemed for 200 points, more than doubling the price for a free latte.
Dunkin Rewards also doesn't give customers a free birthday drink, which could previously be redeemed for even more expensive premium drinks. Instead, customers will earn triple points on the days surrounding their birthdays.
The new Dunkin' Rewards bears some resemblance to the Starbucks Rewards system — even sharing a similar name. Starbucks has one of the most successful rewards membership in the industry. Its redemption system is tiered, requiring different numbers of stars to add an espresso shot to a drink, get a hot coffee, or receive a premium drink. Dunkin's new Rewards program mirrors this.
Dunkin' Rewards members will also have the chance to earn more points on certain occasions, like around their birthdays or if they visit often enough to reach "boosted" status and gain more points per dollar. This is reminiscent of Starbucks double star day promotions, and the chain's former Gold Status tier where certain high-frequency customers were eligible for more rewards.
Dunkin' Perks seems like a savvy financial move, according to president and an analyst at Kalinowski Equity Associates Mark Kalinowski. Dunkin's system was "pretty generous" compared to Starbucks, he said. Now, Dunkin' is moving in the same direction the industry as a whole is trending, towards further personalization and rewarding customers who visit off and spend more.
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