Starbucks is making a significant change to its loyalty program by bringing back tier levels, aiming to inspire more frequent visits from coffee enthusiasts. This announcement was made during the company’s investor day, where executives outlined strategies intended to boost sales and profitability, with a particular focus on their crucial loyalty initiative.
Since its inception in 2009, Starbucks Rewards has served as a key driver for customer engagement. The company, recognized as a pioneer in restaurant technology, uses this program to incentivize members to frequent their stores more often and spend additional money. Remarkably, transactions linked to the Rewards program represented 60% of the company’s revenue in fiscal 2025.
However, Starbucks faces the challenge of balancing attractive rewards for members with the necessity of maintaining healthy profit margins. In 2019, the chain discontinued its previous two-tier system, believing that this would help new members engage more meaningfully. Now, the company has reconsidered and concluded that the earlier system did not sufficiently reward its most loyal patrons.
"Our most devoted customers visit us around 200 times a year, yet we were treating them the same as someone who only comes once a year," explained Tressie Lieberman, Starbucks’ Chief Brand Officer, during an interview with CNBC’s Kate Rogers. "That’s why we’re bringing back tiers."
The revamped tiered program is set to launch on March 10 and will feature three distinct levels.
Understanding the New Starbucks Loyalty Tiers
Members of the Starbucks Rewards program will start at the green tier if they have fewer than 500 "stars," which are essentially points. Green-tier members can enjoy a complimentary drink or food item on their birthday, gain early access to select menu items, and receive personalized offers. Additionally, stars earned by green-tier members will remain valid for six months, with opportunities to extend their expiration by making a purchase or redeeming a reward.
Once a customer accumulates 500 stars within a 12-month period, they will be elevated to the gold tier. At this level, stars do not expire, and members earn 1.2 stars for every dollar spent.
The highest level, known as the reserve tier, is accessible after earning 2,500 stars within a year. Members at this tier enjoy exclusive merchandise, special events, and earn 1.7 points per dollar spent.
Currently, under the existing Starbucks Rewards program, members earn two stars for each dollar spent when using a preloaded Starbucks gift card. If payments are made via credit or debit cards, the earning rate drops to one star for every dollar.
Most of the rewards available for redemption will remain unchanged; however, Starbucks will introduce a new option allowing customers to apply 60 stars for a $2 discount on any order. Additionally, the company is excited to unveil "Free Mod Mondays," offering loyalty members a complimentary drink modification on a designated Monday each month.
This strategic announcement follows the release of Starbucks' latest earnings report, which revealed growth in customer traffic—both from Rewards members and non-members—during the quarter for the first time in nearly four years.
CEO Brian Niccol emphasized the importance of appealing to both dedicated Rewards customers and what he referred to as the ‘light or infrequent customer’ during the earnings call.
