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Loyalty program terms can change.
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Restaurant loyalty programs offer an excellent way to earn freebies and discounts. If you’re already spending money regularly at your favorite restaurants, joining their rewards programs is worthwhile. But it’s essential to put the rewards that you earn to use. Find out why letting your restaurant loyalty rewards sit unused could be a mistake that costs you.
Loyalty programs are a win for your wallet
Loyalty programs incentivize consumers to spend money regularly. Many brands promote these programs, including airlines, hotels, restaurants, and coffee chains. You’re missing out if you’re not putting these programs to use. Even if it takes a while to accumulate enough points, earning a free reward is like being handed free money. Since these programs are free to join, you don’t want to forget about them.
Use your rewards as soon as you earn them
One important thing to remember is that rewards programs can change any time. It’s not uncommon for brands to devalue points as they raise redemption rates for certain free items.
That’s what happened at Chipotle. When the fast-casual eatery first introduced the Chipotle Rewards program, you only needed to earn 1,250 points to get a free burrito or burrito bowl. That’s no longer the case. The program has undergone multiple changes, and you’ll now need 1,625 points to earn a free burrito or burrito bowl. That’s a noticeable difference!
If you let your restaurant loyalty rewards sit unused in your account, you risk losing out. You can maximize the value you get from these programs by redeeming your points or rewards soon after earning them. If not, you may be disappointed later when you discover that your points are worth less than they were previously.
Rewards program changes are common and to be expected
Several companies have made recent updates or announced upcoming changes to their rewards programs, including Dunkin’ Donuts, Chipotle, and Starbucks. As you might imagine, many customers are not happy about this news. That’s because everyday costs are rising due to inflation, and we’re spending more than we used to for the same goods and services.
The U.S. Bureau of Labor Statistics Consumer Price Index: 2022 in review notes that consumer prices for all items rose 6.5% from December 2021 to 2022. Price changes, including increased menu prices, impact your checking account balance.
It’s not shocking that customers would be upset about program changes that require them to earn more points to redeem a free drink or food item. After all, they’re likely already spending more money every time they check out at their favorite restaurant or coffee shop.
Put your rewards to use before they lose value
Do yourself a favor and review your restaurant loyalty program accounts to ensure you’re not letting your points sit unused. It’s also worthwhile to keep updated on potential program changes, so you know what to expect. If you’re spending money at your favorite restaurants, you may want to pay with a rewards credit card to boost the rewards or cash back that you earn.
Are you looking for additional ways to save money and keep your spending on track? Check out our personal finance resources for more guidance.
Companies regularly make changes to these programs and they may make the program less valuable by making it more expensive to redeem for freebies… using up your points is best
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Discover Financial Services and recommends the following options: short April 2023 $100 calls on Starbucks. The Motley Fool has a disclosure policy.
