- Chipotle recently increased the number of points you need to get a free Burrito as a Rewards member.
- A customer expert recommends that they use their rewards as soon as possible after receiving them to avoid losing value.
- Inflation and rising costs could cause other chains to change their rewards programs.
Chipotle Just raised the price of rewardsDunkin’ just Redesigned their reward systemIt is now more difficult to obtain a free drink.
There is a way to maximize your rewards points.
Insider’s president and analyst at Kalinowski Equity Associates Mark Kalinowski said that it is common for rewards to be redeemed quickly. Kalinowski is a fast food expert who also uses rewards to his advantage. He recommends customers use rewards immediately after they have been received, as this will ensure the greatest value.
Chipotle is a fast-casual chain that serves only casual food. The price for a free entree has been increasedYou can earn rewards ranging from 1400 points up to 1625. Customers will receive 10 points for every $1 spent. This means that they can now get a free entree if they spend $162.50. Another way to put it, a customer could have 1400 Chipotle Rewards points and use them to purchase a burrito, but then the price would go up the next morning so they would need to spend an additional $20.
Similar situations were created when Dunkin introduced its Dunkin Rewards program this fall. The previous Dunkin’ Rewards program offered five points per dollar spent. Customers could earn a free drink by spending 200 points (or $40) with the program. The new Dunkin’ Rewards system gives customers 10 points for every dollar they spend. This means that each point a customer carries over is instantly worth less.
There are many ways points can be redeemed. Coffee is now more expensive at 500 points (or about $50 per purchase) than it was 40 years ago. Specialty drinks will now be 700 points or $70 per purchase.
Kalinowski also stated that rewards points may expire with certain programs. This is common with rewards programs in the industry, however different rewards programs have different rules. Take, for example, McDonald’s points Starbucks starsBoth expire after six month. Wendy’s pointsExpires after one year.
Chipotle and other companies are looking to recalibrate their rewards values. Inflation levels reached a 40 year highThe rising costs of labor and commodities.
Kalinowski said, “It wouldn’t surprise us if there are tweaks by other big restaurants concepts,” to their rewards program. These changes could result in similar price increases, which would make individual points less valuable. If rewards become less valuable over time, it is better to get them sooner than later.
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