Starbucks will reintroduce a tiered system for its member loyalty program in North America, a move designed to encourage customers to visit its stores more frequently.
The coffee chain announced the decision during its Investor Day event this Thursday. Company executives detailed various plans aimed at boosting future sales growth and profitability, which included changes to the core loyalty program.
Launched in 2009, the Starbucks Rewards program has been a key tool for the company, often seen as a tech leader in the restaurant industry, to incentivize members to increase both their visit frequency and spending. In fiscal year 2025, 60% of Starbucks' revenue came from transactions linked to this program.
However, the chain must balance offering attractive benefits to members with maintaining its profit margins. In 2019, Starbucks eliminated its two-tier system, stating the change was intended to encourage new members to participate more actively. The company now believes that system failed to adequately reward its most loyal customers.
Chief Brand Officer Tracy Lieberman, who joined Starbucks in November 2024, stated in an interview, "Our core customers visit 200 times a year, and previously we were treating them the same as someone who visits once a year. That's why we've decided to bring back tiers."
The revamped tiered membership program is set to officially return on March 10, featuring three distinct levels.
Under the new Starbucks Rewards tier system, members with fewer than 500 "Stars" will be classified as Green Level. Green Level members receive a free birthday drink or food item, get early access to select new products, and enjoy personalized offers. Their Stars expire after 6 months, but members can extend the validity by redeeming rewards or making purchases.
Customers who accumulate 500 Stars within a 12-month period will advance to Gold Level. Gold Level members enjoy Stars that never expire and earn 1.2 Stars for every dollar spent.
When a member accumulates 2,500 Stars within 12 months, they ascend to the Reserve Level. This tier grants access to exclusive merchandise and events, and members earn 1.7 Stars per dollar spent.
In the current program, members earn 2 Stars per dollar when paying with a pre-loaded Starbucks Card, but only 1 Star per dollar when using a credit or debit card.
The redeemable rewards will largely remain the same after this adjustment, though Starbucks is adding a new option: members can use 60 Stars to get $2 off any order.
Additionally, Starbucks is launching a "Free Customization Mondays" promotion: on one designated Monday each month, loyalty program members can receive one free customization on any beverage.
This announcement came just one day after Starbucks released its latest quarterly earnings report on Wednesday morning. The quarter saw an increase in store traffic from both members and non-members, marking the first time the company has achieved this in nearly four years.
Commenting on the results during Wednesday's earnings call, Starbucks CEO Brian Niccol said, "We have to do both: we have to retain our Rewards members and we have to attract the light, infrequent customer."