Starbucks

Starbucks announces new NFT experience for coffee members

The nonfungible tokens, or NFTs, are minted on a proof-of-stake blockchain built by Polygon.

According to a new post on Monday, Starbucks says it will offer its U.S. members the ability to earn and buy digital collectible stamps in the form of nonfungible tokens, or NFTs. Dubbed “Starbucks Odyssey,” each collectible digital stamp has its ownership verified on the blockchain and will include a point value based on its rarity. As more stamps are collected, members’ points will increase, unlocking access to unique experiences. 

The iconic coffee chain says that rewards range from receiving a virtual espresso martini-making class to accessing unique merchandise to exclusive events invites at Starbucks Reserve Roasteries and possibly trips to the Starbucks Hacienda Alsacia coffee farm in Costa Rica.

Members can earn NFTs by playing interactive coffee-themed games or taking on fun challenges on Starbucks Odyssey, which will be launched later this year. Users can also purchase the NFTs on the built-in marketplace without the need to connect their wallets or use any crypto.

All stamps will feature iconic Starbucks artwork co-created with Starbucks partners and outside artists. A portion of the proceeds from selling limited-edition stamps will be donated to support the creators’ causes. The NFTs themselves are minted on a proof-of-stake blockchain created by Polygon. Regarding the development, Brady Brewer, vice president and chief marketing offic of Starbucks, said:

“We are entering the Web3 space differently than any other brand while deepening our members’ connection to Starbucks. Our vision is to create a place where our digital community can come together over coffee, engage in immersive experiences, and celebrate the heritage and future of Starbucks.”

Starbucks teases Web3 rewards program to attract new customers

“This will create an entirely new set of digital network effects that will attract new customers and be accretive to existing customers in our core retail stores,” said interim CEO Howard Schultz.

Global coffee store franchise giant Starbucks is looking to launch a new Web3 rewards program to attract and retain customers, according to its interim CEO Howard Schultz.

Speaking during the firm’s fiscal Q3 earnings call on Tuesday, Schultz noted that Starbucks will soon reveal a new Web3 “digital initiative” that will expand upon the company’s loyalty program:

“This new digital Web 3-enabled initiative will allow us to build on the current Starbucks Rewards engagement model with its powerful spend-to-earn Stars approach while also introducing new methods of emotionally engaging customers.”

The CEO kept his cards close to his chest, but briefly mentioned during the call that the firm is looking at “integrating our digital Starbucks Rewards ecosystem with Starbucks-branded digital collectibles as both a reward and a community building element.” The full reveal is set to occur during Starbucks’ Investor Day on Sept. 13.

“This will create an entirely new set of digital network effects that will attract new customers and be accretive to existing customers in our core retail stores,” he said.

The company’s quarterly results reportedly beat analyst estimates, with a 9% quarter-over-quarter bump in global revenue to a record $8.2 billion.

During the call, Schultz also said that the Web3 move is part of a push to attract and retain the younger side of Starbucks’ customer base.

“We don’t want to be in a business where our customer base is aging and we have a less relevant situation with younger people,” he said, adding that the company has “never been, in our history, more relevant than we are today to Gen Z.”

Starbucks initially announced plans to jump on the nonfungible token (NFT) bandwagon back in April, as Schultz noted that “sometime before the end of the calendar year, we are going to be in the NFT business.”

Related: Canadian taco franchise uses NFTs for customer loyalty program

Starbucks may not be the only major brand to launch a Web3 loyalty program in the near future.

Last month business-to-business blockchain startup Hang raised $16 million in Series A funding led by Paradigm. The company is looking to help brands transition their current membership and loyalty programs over to the blockchain and incorporate NFTs.

The firm is reported to have beer manufacturer Budweiser, sports media outlet Bleacher Report and popular music festival groups Bonnaroo and Superfly as some of its early clients.