Starbucks Brings Back Loyalty Tiers to Boost Customer Visits
Starbucks is reintroducing tiered membership levels to its Starbucks Rewards program as part of a broader effort to increase customer visits and spending. The coffee chain announced the change Thursday during its investor day presentation, framing the move as a key element of its turnaround strategy in North America.
The updated loyalty structure marks a reversal of a 2019 decision, when Starbucks eliminated its two-tier system in an effort to make the program more accessible to new members. Executives now say the flat structure failed to adequately reward the company’s most frequent customers.
Starbucks Rewards, which launched in 2009, has become central to the company’s business model. In 2025, transactions tied to the loyalty program accounted for roughly 60 percent of Starbucks’ revenue, underscoring its importance to future growth.
Why Starbucks Is Reintroducing Tiers
Starbucks executives say the new system is designed to better distinguish between casual customers and the brand’s most loyal patrons.
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 told CNBC. “So we’ve introduced tiers.
Lieberman joined the company in November 2024 and has been involved in reshaping Starbucks’ brand and customer engagement strategy. The company believes the tiered approach will encourage higher spending and more frequent visits, while still attracting new users to the program.
The revised Starbucks Rewards program will take effect on March 10 and will feature three membership tiers.
How the New Starbucks Rewards Tiers Work
Under the new structure, members with fewer than 500 stars will be placed in the green tier. These customers will receive a free drink or food item on their birthday, early access to select menu items, and personalized offers. Stars earned at this level will expire after six months, though members can prevent expiration by making a purchase or redeeming a reward.
Once a customer earns 500 stars within a 12-month period, they are upgraded to the gold tier. Gold members’ stars will never expire, and they will earn 1.2 stars for every dollar spent.
The highest level, reserve tier, requires customers to earn 2,500 stars within a year. Reserve members will earn 1.7 stars per dollar and gain access to exclusive merchandise and special events.
Changes to Earning and Redeeming Rewards
Starbucks is largely keeping its existing redemption options intact. Currently, Rewards members earn two stars per dollar when paying with a preloaded Starbucks gift card and one star per dollar when using a credit or debit card.
The company is adding a new redemption option that allows customers to exchange 60 stars for a $2 discount on any order. Starbucks is also rolling out “Free Mod Mondays,” which will allow Rewards members to add one complimentary drink modification on a designated Monday each month.
Loyalty Program Tied to Recent Sales Growth
The announcement follows Starbucks’ latest earnings report, released Wednesday, which showed an increase in customer traffic for the first time in nearly four years. Both Rewards members and nonmembers visited stores more frequently 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.
As Starbucks looks to stabilize sales and rebuild momentum, executives are betting that a more clearly defined loyalty structure will help strengthen relationships with its most devoted customers while still appealing to occasional visitors.
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