Starbucks overhauls loyalty program as U.S. visits rebound
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Starbucks is revamping its loyalty program again, with new tiers and benefits rolling out in March and a long-requested change to a fan-favorite freebie.
Why it matters: Just as U.S. store visits are rising for the first time in nearly two years, the coffee giant is trying to make Starbucks Rewards easier to use — and make the perks count.
- The overhaul fits into CEO Brian Niccol's "Back to Starbucks" plan, designed to boost traffic and rebuild loyalty without relying on heavy discounting.
Driving the news: Starbucks unveiled the loyalty changes Thursday at its Investor Day event in New York City and said the redesigned program launches March 10.
- It introduces three membership levels — Green, Gold and Reserve.
- The program shifts away from a rewards structure tied primarily to how customers pay and instead ties faster reward earnings to overall engagement with Starbucks.
Flashback: Starbucks has revamped the rewards program multiple times, including a 2023 change that raised the number of stars needed for some free drinks and sparked customer backlash.
Why Starbucks is changing its rewards program
The intrigue: Global chief brand officer Tressie Lieberman said Starbucks has more than 35 million active rewards members, who account for nearly 60% of U.S. company-operated revenue.
- "Our best customers visit us more than four times a week on average — that's 19 times a month and over 200 visits per year," Lieberman said.
- One extra visit per year from half of active members would generate about $150 million in revenue, she said.
Follow the money: Axios calculated that, based on base earning rates, reaching Gold status would require hundreds of dollars in annual spend, while reaching Reserve status would require well over $1,000.
- This excludes Starbucks' bonus-earning opportunities, which can significantly change how quickly members earn stars.
New Starbucks Rewards tiers
Zoom in: Members can move up tiers at any time as they accumulate stars, and status is valid for 12 months. Stars are earned by making purchases, digital reloads, Double Star Days, promotions and games.
- Green: Earn 1 star per dollar spent, plus personalized offers, early access to select food and drinks, and a new perk called Free Mod Mondays. Stars expire after six months but can be extended with qualifying activity.
- Gold: Earned after 500 stars in a year. Members earn stars faster (about 1.2 per dollar), unlock stars that never expire and receive at least four additional Double Star Days annually.
- Reserve: Earned after 2,500 stars in a year. Members earn stars fastest (about 1.7 per dollar) and unlock premium perks like exclusive merchandise and experiences.
Starbucks birthday freebie gets upgrade
Starbucks is expanding how long customers have to redeem their free birthday reward — a popular perk that fans have long complained was too easy to miss.
- Green: On their birthday (same as current program).
- Gold: Seven-day window.
- Reserve: 30-day window.
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