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Dunkin' Donuts Going After Frustrated Starbucks Customers

CANTON (CBS/AP) – Dunkin' Donuts is reportedly coming for longtime Starbucks customers feeling jilted by changes to the rival coffee chain's loyalty program.

The new Starbucks program awards stars based on dollars spent instead of the number of visits. People will now have to earn 125 stars for a free item, with each dollar spent being worth two stars — meaning they have to spend $62.50 to get their free item. That means people who stick with options like plain coffee are losing out.

The switch has left many Starbucks customers unhappy, and that's where Dunkin' sees opportunity.

"We feel excited about the change to Starbucks' loyalty program," Dunkin' Brands Group CEO Nigel Travis told Reuters. "We've been targeting customers with $5 gift cards."

A recent promotion advertised on the Dunkin' Donuts Twitter account offered $5 and a free beverage for anyone who enrolled in the DD Perks program.

Last month, Starbucks said it had 11.1 million loyalty program members in the U.S., up 23 percent from the previous year.

(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)


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