Starbucks is reintroducing tiers to its North American loyalty program in a bid to encourage coffee drinkers to visit more frequently as part of its broader turnaround strategy.
The company made the announcement on Thursday at its investor day. Executives across the business are sharing more details on the company’s plans to drive future sales growth and profitability, including through its all-important loyalty program.
Starbucks Rewards has existed since 2009. The company, long seen as a leader in restaurant technology, relies on its loyalty program to encourage members to visit more frequently and spend more money. In fiscal 2025, the transactions linked to the Rewards program accounted for 60% of the company’s revenue.
But the coffee chain also has to balance offering members enticing rewards with maintaining profit margins. In 2019, the company eliminated the two-tiered system, saying that the change was meant to encourage new members to become more engaged. The company now feels that system does not appropriately reward its most loyal customers.
“Our very best customers are coming 200 times a year, and we were treating them the same as someone who comes once a year,” Starbucks Chief Brand Officer Tressie Lieberman, who joined the company in November 2024, told CNBC’s Kate Rogers. “So we’ve introduced tiers.”
The tiered program will return on March 10, this time with three levels.
How Starbucks loyalty tiers will work
Starbucks Rewards members with fewer than 500 “stars” — or points — will belong to the green tier. They can enjoy a free drink or food item on their birthday, receive early access to select menu items and get personalized offers. Green-tier members’ stars won’t expire for six months, and they can keep them from expiring in several ways, like redeeming a reward or making a purchase.
Once a customer earns 500 stars over a 12-month period, Starbucks upgrades them to the gold tier. Their points never expire, and they earn 1.2 stars for every dollar they spend.
Members can level up to reserve tier after earning 2,500 stars over a 12-month period. Customers at this level get access to exclusive merchandise and events, and they earn 1.7 points per dollar spent.
The current Starbucks Rewards program gives members two stars for every dollar they spend when they pay with a preloaded Starbucks gift card. If they pay with a credit or debit card, members earn just one star per dollar spent.
The rewards available for redemption are largely staying the same, although Starbucks is adding the option for a $2 discount on any order in exchange for 60 stars.
The company is also adding “Free Mod Mondays,” which give loyalty program members a complimentary modification to any drink on a select Monday, once per month.
The announcement comes on the heels of the company releasing its earnings report on Wednesday morning. For the first time in nearly four years, Starbucks saw traffic from both Rewards members and non-members grow during the quarter.
“You have to win both with your Rewards customers and — call it — the light or infrequent customer,” CEO Brian Niccol said on the company’s earnings call on Wednesday.
