Starbucks has announced a significant revamp of its loyalty program across North America, effective from March 10, 2026. This change aims to introduce a tiered system, which many customers feel may lead to disappointment.
Understanding the New Tiered System
The updated loyalty program will categorize members into three tiers: Green, Gold, and Reserve. Here’s how the tiers work:
- Green: All members start here.
- Gold: Requires earning 500 Stars in a year.
- Reserve: Requires earning 2,500 Stars within a year.
Members’ spending in 2025 will determine their tier upon launch. Green members will need to redeem their birthday treat on their actual birthday, while Gold and Reserve members enjoy longer redemption windows of seven and thirty days, respectively.
Key Changes to Star Expiration
Star expiration policies have also shifted. Gold and Reserve members no longer lose their Stars, while Green members must make at least one purchase each month to keep their Stars from expiring after six months.
New Earning Rates
The new earning rates are defined as follows:
- Green: 1 Star per dollar spent.
- Gold: 1.5 Stars per dollar spent.
- Reserve: 1.7 Stars per dollar spent.
Additionally, Starbucks will offer a reload bonus for digital card funds: a $30 reload grants 10 extra Stars, while a $50 reload gives 25 extra Stars. This means adjusted effective rates are:
- Green: 1.5 Stars per dollar.
- Gold: 2 Stars per dollar.
- Reserve: 2.2 Stars per dollar.
Cost of Maintaining Membership Tiers
To maintain Gold status, members must spend approximately $250 annually, while Reserve status requires an annual expenditure of about $1,136.37. These amounts exclude potential promotions or special offers.
Modifications in Redemption Options
Star redemption remains flexible, allowing members to use Stars for various rewards. Examples include:
- 25 Stars for customizing a drink.
- 200 Stars for a drink or breakfast item.
- A new option of 60 Stars for $2 off any purchase.
However, Starbucks has introduced price caps for certain tiers. For instance, the 100-Star redemption now has a maximum value of $6, which may frustrate some customers who expect full value for their redemption.
Impact on Customer Loyalty
This overhaul seems primarily designed to increase Starbucks’ revenue by encouraging more frequent visits and higher spending among members. While significant devaluations of loyalty programs are not uncommon, this shift lacks enough meaningful improvements to offset the loss of benefits.
The changes may not drive a mass exodus from Starbucks, but they could incentivize loyal customers to consider local coffee shops instead, especially those offering robust loyalty programs.
