Dive Brief:
- Dunkin’ changed its loyalty program, again, making most items more expensive to redeem, but increasing discounts on bagels and bites, and adding a new bakery category, according to a Restaurant Dive analysis of rewards changes, which launched Monday.
- Loyalty points will expire one year from the end of the month in which they are earned, meaning consumers can no longer stockpile rewards points indefinitely, according to an email sent to Dunkin’ rewards members.
- Dunkin’s shift to reduce most discounts in its loyalty program comes as other coffee chains, most notably Starbucks, have started to move away from using their loyalty systems as pure discount plays.
Dive Insight:
The changes to redemption prices for most menu items will make it generally more expensive for consumers to earn rewards. Dunkin’, however, emphasized the addition of new types of rewards to its program, which it said reflected consumer desire for personalized rewards options.
“We have introduced a new Bakery category that includes 10-count MUNCHKINS and muffins. Additionally, we have reduced the points required for popular items, such as the Wake-Up Wrap and bagels. Members can now also redeem rewards for popular drinks such as the Shakin’ Espresso and Dunkalatte in our Specialty Coffee category,” a Dunkin’ spokesperson said in an email to Restaurant Dive.
The changes are similar to a previous 2022 overhaul of the loyalty program that increased the accrual rate of points, but devalued the discounts offered by those points. Those changes drew vocal opposition from some longtime Dunkin’ consumers.
Restaurant Dive used in-app pick-up prices for menu items at a Washington, D.C., Dunkin’ to calculate the spend required to redeem different items and the effective discount rates under the old and new systems, as well as the percent inflation in redemption prices. Restaurant Dive only compared prices for medium beverages, and included the Dunkalette and Iced Matcha Latte to showcase price variation within beverage categories.
How Dunkin' rewards changed in 2025
Previously, Dunkin’s effective discount rate ranged from about 6.15% on a bagel with cream cheese to about 8.84% on an iced match latte, 9.18% for a Cold Brew and 10.6% for the Li’l Treats category. Under the current rewards systems, the range of discounts decreased to 4.83% on a Cold Brew and 7.74% on an iced matcha latte. The Li’l Treats discount rate remained static. Only the Bagels and Bites category saw its discount rate increase. The new bakery item redemption tier, which includes items like muffins, had a discount rate about 6.98%.
These discount rates may be inflated by Restaurant Dive’s choice of a centrally located Dunkin’ in a major metropolitan market. Because the spend required to accrue points remains constant, the discount offered on items decreases in proportion to decreases in item prices.
The changes in rewards strategy at Dunkin’ and Starbucks seem at odds with the overall emphasis QSR brands are placing on value this year. As consumers opt for value deals in historically unprecedented numbers, according to data from Circana, brands need to protect margins by limiting the discounts offered to consumers through loyalty programs.
