Delta and Starbucks launched a mileage partnership in fall 2022 where you would link your accounts and then earn 1 SkyMile per dollar spent at Starbucks. This largely copied an Air Canada – Starbucks program in Canada.
They’ve now ‘optimized’ the program so that instead of earning points when you make purchases at Starbucks, they award points for reloading Starbucks cards – and they’re punishing smaller reloads and incentivizing larger ones.
You earn fewer miles on small reloads (a $45 reload would earn only 25 SkyMiles) and reaching 2 miles per dollar with a $100 reload.
Starbucks comes out way ahead paying to incentivize a boost in its stored-value card balances. Currently they have about $1.87 billion in unredeemed account balances on their books.
- Starbucks does not pay interest on these “deposits”
- Starbucks earns a return on this money
So what does this get Delta, besides financial transactions related to their miles? Access to Starbucks customers as SkyMiles members. Both sides have access to the other company’s premium customers.
While Delta has the currently-most lucrative credit card co-brand deal it appears to have slowed down. They’re running out of customers to convert into Amex cardmembers. That’s why they’re looking for ways to feed the SkyMiles funnel, like offering free wifi on board to passengers who sign up for the program. This gives Delta access to people who pay Sixbucks for a coffee. It’s all about credit card signups for Delta, while like Amex Starbucks also turns out to be a bank.
The Delta and Starbucks partnership is fitting as well considering how frequently both have devalued their programs. Still, if you’re going to buy Starbucks anyway and load Starbucks cards anyway then earning a Delta mile for doing so is better than not earning that Delta mile.
Isn’t another way that Starbucks comes ahead is reduced swipe fees? You gotta figure that adds up too.
Overpriced crappy coffee in exchange for next to worthless miles. Awesome
When you load your Starbucks app using your United meal vouchers then make sure to also earn adult a mile while you’re at it
@ Gary — Starbucks “program” is of zero value to me. Then again, I rarely drink their overpriced crap anyway.
@ Esaphire3 — I prefer to reload my Chick-fil-A account.
@Thomas: Yeap, Starbuck would much rather have you charge $25/$100 once than $6 every day.
Unrelated to Delta…
My Starbocks consumption fell to nearly 0 annually once I bought a Delonghi Magnifica.
That thing rocks.
If you are a thoughtful and Earth-forward traveler, consider shopping at Starbucks for your elite miles.
Gene, that reminds me to go load another $25 onto my Chick-fil-a account using my monthly $25 credit from my Amex Bonvoy Brilliant card. I just got the calendar reminder this morning.
One has to really be nuts to use this program. Charbucks earned its name.
Starbucks is sort of late to the game in this kind of enhancement by a coffee shop loyalty program. In Europe, places like EspressoHouse already went to this kind of scheme of “optimizing” for rewarding reloads more than orders.
Article correction – you receive double STARS on days you fly not double miles… you will still earn double stars on days you fly once this new system is implementing.
Two tangential things:
The quality of their coffee notwithstanding, the cost of an actual coffee at Syarbucks is amazingly similar to the price of, say Dunkin Donuts coffee. The high price thing is all about the wild things people put in their caffeinated drinks. We all blaming Starbucks for collecting the cash for those Pink Drinks?
More relevant to the main idea, this change really stinks if you previously used a Bank of America card for your $20 reload and then collected Amex points on the purchase.
Gary, where are you getting this info? The http://www.deltastarbucks.com site still says 1 mile per dollar. I scanned your article for any links to an official announcement from Delta or from Starbucks about this change, but I don’t see anything!
Never mind — it was in an email from Delta. I see it now.
Would it seem less “punishing” for smaller reloads if this program were to offer them zero points?
Also, woth regards to Starbucks > not paying interest on these “deposits” & Starbucks earning a return on this money, which gift card program in the whole retail universe that you are aware of pays interest? And who in theor right mind would have $1.7 Billion of others people’s money entrusted to them, that is not earning any interest on?
This is not any different than “Insurance float”, and insurers make millions of dollars off of that.
Hating on Starbucks to make yourself feel smugly superior is SO 1999. Get over yourselves already.
So I understand: does this new way mean that the ONLY way to earn miles is by loads/reloads to Starbucks account?
I’m new to the connected program, and very new to having a Starbucks app/account. The way it is now and has been, could one earn skymiles just by buying food/drink/merchandise in-person at Starbucks without buying on the app and/or without loading pre-payments on the app? (example: you could scan your Starbucks loyalty info when you are in-person and paying directly at Starbucks cashier, and then earn stars and miles?)
So, does this new approach to earning skymiles eliminate the ability to earn when paying in-store with credit card or cash at Starbucks? Does it eliminate earning skymiles when one makes an order on the app, and then pays for just that order on the app, for in-store pick-up (so not using the “load” prepay/deduct system)?
Sorry if these are questions that don’t quite make sense. Like I said, I am very new to the Starbucks app so still learning.
Last, I’ve just been on the Starbucks and the Delta websites, and they are both not mentioning this change, both just saying as it has been for some time: 1 skymile for 1 dollar spent at Starbucks. Neither website shows this new chart, neither mentions upcoming changes. The date you and another miles blogger say is June 12: that’s just 3 days away. You would think their websites would be showing this upcoming change.
Thank you for sharing this info with us.