https://www.pymnts.com/earnings/2022/starbucks-claims-181m-in-revenue-from-unused-gift-cards-and-loyalty-credits/

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Starbucks Claims $181M in Revenue From Unused Gift Cards and Loyalty
Credits

By PYMNTS  |  November 16, 2022
     | 
Starbucks

Starbucks reportedly claimed $181 million in revenue from money on
gift cards and loyalty accounts that customers didn't spend in fiscal
year 2021 -- a figure that amounted to about 1% of its sales and 4.3%
of its net income during the year. 

The amount of unused credit claimed that year was up from $145
million in fiscal year 2000, Bloomberg reported Wednesday (Nov. 16). 

The growing amount of money left by customers on their stored-value
cards and accounts was disclosed by the Strategic Organizing Center,
an organization composed of labor unions, which filed a complaint
Wednesday with the Securities and Exchange Commission (SEC) in which
it requested an investigation into how the company accounts for that
unused money. 

Sources interviewed by Bloomberg said Starbucks' disclosures around
breakage -- revenue from services that are paid for but not used -- are
less detailed than those offered by other companies, even though
credit is a significant component of its financial health. 

About 43% of Starbucks' revenue in fiscal year 2021 came from
stored-value programs -- a category of products that includes gift
cards and rewards that are credits in the company's loyalty app,
according to the report. 

A Starbucks spokesperson declined PYMNTS' request for comment other
than to share a link to the company's most recent annual report.

This report comes about two weeks after Starbucks executives said the
company plans to partner with additional companies for cross-brand
rewards. 

During Starbucks' latest quarterly earnings call, held Nov. 3, they
said the recent rewards partnership with Delta Air Lines is the first
such collaboration of more to come. 

As PYMNTS reported at the time, Starbucks is something of a leader in
the restaurant loyalty space, with its loyalty program members
contributing 55% of revenue -- way over-indexing relative to the
general restaurant customer population. 

In addition, the brand saw its base of active loyalty members grow
16% year over year. 

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