The Decline of “Free” Coffee.

image caption, There are fewer and fewer free coffee benefits

  • Author, Lucy Clarke-Billings
  • Role, BBC news

Especially on our everyday coffee which is closer to £4 a cup than £3 in some places these days.

And yet, nearly four years after launching its much-loved subscription, Pret A Manger has become the latest coffee chain to ditch it in favor of a less generous scheme.

Under the current system, subscribers who pay a monthly fee of £30 get up to five ‘free’ coffees a day.

But from September, Pret will be offering up to five half-price coffees a day for £10 a month, which it says will “continue to be the best deal on the high street”.

Pret said it “never felt comfortable” with the dual pricing system for its food products.

Social network X has been inundated with criticism following the Pret news.

“Play with loyalty programs at your own peril,” warned retail expert Catherine Shuttleworth.

“It may make business sense for Preto, but the reaction – it plays into the hands of their competitors.”

Less benefits of Costa and Starbucks

image caption, Pret is under fire for the change

You may not have noticed, but your wallet probably has.

Costa Coffee currently runs a free Costa Club loyalty card, but changed the terms last August.

Customers went from needing eight stamps (or “beans”) on their loyalty cards to qualify for a free drink to needing 10.

In late 2022, Starbucks announced that more loyalty points will be required to redeem many offer items.

Customers who sign up for the chain’s Starbucks Rewards program earn points (or “stars”) when they buy food or drinks.

Hot coffee, tea or pastries now require 100 stars, doubling the previous cost of 50 stars.

The price of Arabica beans has risen sharply in recent years due to the impact of climate change in countries such as Brazil and Ethiopia.

The industry also continues to struggle with high utility and energy bills.

Richard Lim, chief executive of Retail Economics, said the BBC’s subscription models offer value to customers but must be mutually beneficial to work.

“They can also be good for businesses because they produce predictable, stable income that can be relied upon for recurring income,” he said.

“But if one side loses, it won’t work, and the big question is, was it commercially viable for Preto? I don’t think so.”

Pret feels anger

The Costa and Starbucks announcements sparked outrage among customers at the time, and now it’s Preto’s turn.

“I only have a subscription because I couldn’t be bothered to bring my own drinks to work and there’s a Pret in my building,” said one user on X.

“With the new deal, it’s cheaper to stop being lazy.”

Another said Pret had “broken their grip on the customer”.

A third customer said: “I’m already getting 25% [off] coffee from Nero with market comparison. Why should I continue to pay Pret for a similar discount scheme? Madness.”

One expert backed the new subscription model in an interview with the BBC this week, saying the old model had “alienated” non-subscribers.

“Consumers today want instant value. They shouldn’t need a calculator to figure out if they’re getting a good deal,” said retail analyst Natalie Berg.

But Ms Shuttleworth said: “Pret will be hoping people are lazy and stuck in their routines”, although others might vote with their feet.

“From Preto’s perspective, this subscription has increased footfall and the chance for higher spend because people will come in for coffee and pick up a breakfast or sandwich on the way to the counter,” she said.

“They did it to get customers back after the pandemic when everyone was going back to their offices and it worked,” helping Pret return to profit for the first time since 2018 last year.

“They want to replace it now with something that’s better for them as a business, but it’s a big risk.”

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top