Jul 5, 2022 - Economy & Business

Starbucks has a rare Tuesday discount in July on cold drinks

Starbucks store with woman walking through door
Starbucks Rewards members can get 50% off cold handcrafted drinks Tuesdays in July. Photo: David Paul Morris/Bloomberg via Getty Images

Starbucks is offering a rare discount this month after raising "prices several times to address increasing inflationary pressures" over the last year.

What’s happening: Every Tuesday in July, Starbucks Rewards loyalty members get 50% off one handcrafted cold beverage with an offer in its app at participating locations nationwide.

Details: The deal excludes "ready to drink, bottled beverages and alcohol" and cannot "be combined with other offers or discounts," according to the offer's fine print.

  • There's a limit of one discount per person, which can be used when ordering ahead or by asking "your barista to apply it at the register." It's not valid for delivery.

What they're saying: In February, former Starbucks president and CEO Kevin Johnson spoke of October 2021 and January 2022 price increases with more coming.

  • "We have additional pricing actions planned through the balance of this year, which play an important role to mitigate cost pressures, including inflation, as we position our business for the future," Johnson said Feb. 2.
  • Starbucks' founder and interim CEO Howard Schultz, who replaced Johnson this year, said in May that demand for the brand was growing despite the price increases, which he said demonstrated "the elasticity of demand for Starbucks coffee."

Between the lines: Starbucks Rewards in the U.S. grew 17% over the last year to 27 million members, Schultz said during the company's May quarterly earnings call.

  • Starbucks chief financial officer Rachel Ruggeri said loyalty members delivered "54% of the revenue in our U.S. company-operated stores, the highest level of engagement on record, up 2 percentage points from the prior year."

Meanwhile, on the first day of summer, Starbucks added two cold summer drinks, the Pineapple Passionfruit and Paradise Drink Starbucks Refreshers beverages to its seasonal menu.

  • In June, Starbucks also added the Chicken, Maple Butter & Egg Sandwich and the Cookies & Cream Cake Pop to its menu.

Our thought bubble: Starbucks started moving discounts to its mobile app for rewards members before the pandemic, including the popular "Happy Hour" deals.

  • During the pandemic, deals at Starbucks and other chains including 7-Eleven were scaled back, changed or even canceled to prevent crowds of people from gathering.
  • 7-Eleven's Slurpee Day 2022 offer is available through July 11 for its 7Rewards members through its app, a change from before the pandemic.

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