Media Kit

Fb Share

Will a reusable cup get people thinking about their reusable cards? Starbucks may soon find out.

The Seattle-based coffee chain is introducing a reusable cup, one that looks just like its familiar paper cups, which it hopes will encourage consumers to be more green. The challenge, some experts say, is not merely convincing consumers to buy the $1 cups, but getting them to remember to bring the cups back into the store with them.

Based on Starbucks' annual report, the point should be well taken. In the fiscal year ended Sept. 30, 2012, Starbucks said income on unredeemed stored value cards, primarily its Starbucks Cards, was more than $60 million. But that may represent a fraction of the total value of unredeemed cards.

This is how it works. Starbucks recognizes revenue from its cards when they are redeemed. Until then, the outstanding customer balances are included in deferred revenue on the consolidated balance sheet, which was $510 million in 2012. There are no expiration dates on the cards, and Starbucks continues to honor all cards presented for payment.

But, Starbucks states in its annual report, management may determine the likelihood of redemption on some cards to be remote, due to inactivity. When this happens, and when the law allows, those card balances may be recognized in its earnings report.

In 2012, such income recognized from unredeemed cards was $65.8 million. That is up from $46.9 million in 2011 and $31.2 million in 2010, though Starbucks said that in 2012 it recognized additional income due to a court ruling involving unclaimed property laws.

The point is that even Starbucks, a high-frequency merchant known for achieving a strong level of loyalty, occasionally needs to ping some of its customers to come around. Perhaps a reusable cup in the car’s many cup holders will do the trick.

Related Content

User Comments – Give us your opinion!
Products & Services

Codigo Digital Signage

http://global.networldalliance.com/new/images/products/5953.png

5953/Codigo-Digital-Signage

Slabb X1 Wall-Mount Kiosk

http://global.networldalliance.com/new/images/products/6475.png

6475/Slabb-X1-Wall-Mount-Kiosk

Codigo Custom Content

http://global.networldalliance.com/new/images/products/5961.png

5961/Codigo-Custom-Content

Human Resources KIOSKS

http://global.networldalliance.com/new/images/products/2080.png

2080/Human-Resources-KIOSKS

LG 47LN541C

http://global.networldalliance.com/new/images/products/6439.png

6439/LG-47LN541C

PeopleMatter HIRE™

http://global.networldalliance.com/new/images/products/4625.png

4625/PeopleMatter-HIRE

Lifecycle Engagement

http://global.networldalliance.com/new/images/products/7015.png

7015/Lifecycle-Engagement

Media Player by ComQi

http://global.networldalliance.com/new/images/products/mediaplayer_100.gif

186/Media-Player-by-ComQi

Olea Chicago Kiosk

http://global.networldalliance.com/new/images/products/6301.png

6301/Olea-Chicago-Kiosk

LG 55LN541C

http://global.networldalliance.com/new/images/products/6429.png

6429/LG-55LN541C

Public relations and marketing strategies

Latest posts by Lisa Biank Fasig
Lisa Biank Fasig
Lisa leads the creation of editorials and feature stories for COLLOQUY and oversees the work of contributing editors and writers. With 18 years of reporting experience, most in business and specifically consumer behavior, she is highly skilled at researching data and teasing out the trends. A background in graphic design enables her to see ideas in three dimensions and tell the story visually.
CONNECT 2014 Mobile Innovation Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.