Loyalty programs require members to make purchases to earn rewards and are designed to increase visitor frequency.
Whether it’s a local car wash that gives you a free wash after your fifth visit, or a spa discounting Botox treatments, all loyalty programs have one thing in common: the business owners want you to think of them first when you’re ready to spend.
While I have loyalty cards for at least four coffee shops where I live, Starbucks is the place I frequent the most.
One reason I choose Starbucks is the ease of using the app to track purchases and, therefore, my rewards. The app even pushes limited-time offers, which reinforce repeat visits.
The current reward system is functional, although over the years, Starbucks has increased the amount members have to spend to get freebies.
At last week’s Investor Day, the company outlined changes to its loyalty program, including some higher-value experiential rewards.
Starbucks updated rewards program has some generous perks, including all-expenses paid trips to global coffee centers.
Image source: Starbucks
Starbucks’ new rewards program launches March 10, 2026
Starbucks unveiled a reimagined loyalty program that introduces a tiered structure and premium perks designed to deliver “more meaningful value, personalization and engagement,” according to the company’s announcement.
The Starbucks reward program currently has more than 35 million active U.S. Rewards members, the company said, making it among the most popular rewards programs.
Related: Starbucks slashes its menu, removing 13 drinks
“We’re redefining the industry with customer-focused benefits that set a new standard and ignite fandom. Starbucks Rewards has always been about creating connection, and we’re evolving the program based on what our members told us matters most, offering faster, more meaningful benefits that make them feel appreciated,” Starbucks Global Chief Brand Officer Tressie Lieberman said in the announcement.
“This evolution is a key milestone in our Back to Starbucks strategy and will reinvigorate what it means to be a Starbucks Rewards member,” Lieberman added.
Starbucks’ move is part of a broader effort to enhance the loyalty program beyond basic transactions and toward experiences that reward long-term engagement.
New Starbucks reward program has three levels
The revamped Starbucks reward program includes three spending-based levels, meaning the more members spend and move up the ladder, the greater the rewards.
Green Member rewards (0-499 stars):
- 1 star earned for each $1 spent.
- Double stars when using a personal cup.
- “Free Mod Mondays” allow members one free customization per month.
- Early access to games and offers.
- Earn bonus stars when reloading the card with $30 or more.
- Free treat on your birthday.
Gold Member rewards (500-2,499 stars)
All of the above plus:
- 1.2 stars earned for each $1 spent.
- 7 days to redeem the birthday treat.
- 4 or more Double-Star Days per year.
- Stars never expire.
Reserve Member rewards (2,500 stars +)
All of the above plus:
- 1.7 stars for each $1 spent.
- Stars never expire.
- 6 or more Double-Star Days per year.
- A free personalized Reserve Card
- Access to the Starbucks merchandise shop and all-expenses paid “Global Coffee Experiences.”
The Reserve tier is akin to airline- and hotel-style rewards that appeal to the highest-spending customers and offer exclusive experiences alongside free products.
“Reserve members will also gain access to exclusive merchandise and curated events, including all-expenses paid trips to exciting destinations like Tokyo, Milan or Costa Rica to explore and celebrate coffee culture globally,” according to the Starbucks announcement.
Coffee inflation has outpaced other food prices
Higher coffee prices and tariffs have been weighing on Starbucks’ profits, particularly in North America, where inflation has been above the Federal Reserve’s 2% target. The year-over-year consumer price index (CPI) is around 2.7%, according to the Bureau of Labor Statistics.
Coffee prices, in contrast, have risen sharply: the most recent CPI breakdowns show coffee costs up about 19.8% year over year, with roasted coffee up around 18.7% and instant coffee up about 28.0%.
Starbucks’ rewards program is part of the company’s turnaround plan
At the company’s January 28, 2026, Q1 Fiscal Year 2026 Investor Day announcement, CEO Brian Niccol shared the following info about the company’s recent performance:
- 4% comparable sales growth globally and in the U.S. signaled improving traffic
- U.S. transactions rose for the first time in eight quarters.
- $9.9 billion in Q1 revenue, up 6% year over year, suggesting ongoing top-line strength despite higher costs and cautious consumer spending.
- 7% comparable sales growth in China, suggesting increasing demand in Starbucks’ fastest-growing major market.
- 290 basis points of GAAP margin compression pushed operating margin down to 9.0%, driven by labor investments, elevated coffee prices, and tariffs.
- $0.26 in GAAP EPS, down 62% year over year, highlighted the earnings impact of cost pressures and restructuring activity.
- 128 net new stores added in the quarter, bringing Starbucks’ global footprint to 41,118 locations.
- $2.15 to $2.40 in projected non-GAAP EPS for fiscal 2026 reflected management’s confidence that the “Back to Starbucks” strategy will translate into earnings growth.
Starbucks has one of the most popular loyalty programs
There are four basic types of loyalty programs, as defined by Loyalty Lion, a company that helps businesses build such programs:
- Points-based programs, like Starbucks’, reward customers with points based on their purchases. The points can be redeemed for products or services.
- Value-based programs are similar to points-based programs, but customers can earn points beyond just making purchases, including by referring others.
- Tiered programs involve levels of membership that offer increasing rewards and benefits based on customer spending or engagement; the Starbucks program is both points-based and tiered.
- Subscription programs require customers to pay an ongoing fee to get access to perks, products, or exclusive events.
The following companies have “the best” loyalty programs out there, also according to Loyalty Lion:
- Sephora: Points-based/Tiered
- Starbucks: Points-based/Tiered
- LEGO: Value-based
- MoxieLash: Points-based/Value-based
- Astrid & Miyu: Tiered
- Barnes & Noble: Subscription
- Amazon Prime: Subscription
- TheCHIVE: Gamified
- Lively: Points-based/Value-based
- Pulse Boutique: Points-based/Value-based