Starbucks has announced the return of tiers to its North American loyalty program as part of a strategic initiative aimed at encouraging more frequent visits from coffee enthusiasts. This revelation came during the company’s investor day presentation, where executives elaborated on plans to enhance sales growth and profitability, with a particular emphasis on the Starbucks Rewards program.
Since its inception in 2009, Starbucks Rewards has played a critical role in fostering customer loyalty, with transactions linked to the program accounting for 60% of the company’s revenue in fiscal 2025. Historically regarded as a pioneer in restaurant technology, Starbucks has leveraged its loyalty program to entice members to make more visits and spend more during each trip. However, the challenge remains to balance attractive rewards for members while preserving profit margins.
Previously, in 2019, Starbucks eliminated its two-tiered rewards system to simplify engagement for new members. However, the company has since reassessed its approach, realizing that it was not adequately acknowledging its most dedicated customers. Tressie Lieberman, Starbucks’ Chief Brand Officer, highlighted the disparity in treatment for customers who visit regularly versus those who only come occasionally. “Our very best customers are coming 200 times a year, and we were treating them the same as someone who comes once a year,” she stated in an interview.
Set to relaunch on March 10, the tiered system will introduce three distinct levels. Members with fewer than 500 stars will occupy the green tier, wherein they can enjoy perks such as a complimentary drink or food item on their birthday, early access to selected menu items, and personalized offers. Stars earned in this tier will remain valid for six months, with various ways to prevent expiration, such as making purchases or redeeming rewards.
After accumulating 500 stars in a year, customers will be elevated to the gold tier, where their stars do not expire, and they will earn 1.2 stars for each dollar spent. Further advancement to the reserve tier, achievable after earning 2,500 stars, comes with additional benefits, including exclusive merchandise, special events, and 1.7 points per dollar spent.
The structure of the current Starbucks Rewards program remains largely unchanged, allowing members to earn two stars per dollar spent when using a preloaded Starbucks gift card, while credit or debit card payments yield one star per dollar. New additions include a $2 discount on any order for 60 stars and “Free Mod Mondays,” providing members with one complimentary modification to any drink on a designated Monday each month.
This announcement follows a positive earnings report revealing growth in both traffic from Rewards members and non-members for the first time in nearly four years. CEO Brian Niccol emphasized the importance of catering to both loyal customers and occasional visitors, underscoring the company’s commitment to enhancing the overall customer experience.
