No more free coffee on your birthday? Companies rein in customer rewards programs — here’s why

By WYATTE GRANTHAM-PHILIPS
AP Business Writer

WASHINGTON (AP) — Reward programs, including birthday freebies and discounts, have long been a way for brands to build loyalty and incentivize spending. But now some companies are becoming a bit more stingy, and customers are taking notice. Last fall, for example, many balked at Dunkin’s decision to stop offering a free drink on their birthday and instead give them triple loyalty points on their purchase. Some experts say the cost of maintaining loyalty programs, as well as recent impacts of inflation and changes in consumer behavior since the start of the COVID-19 pandemic, are among the reasons why companies may be pulling back. Meanwhile, some chains have argued that rewards adjustments reflect customer behavior.