Starbucks has recently seen a spike in demand after facing weak sales for several financial quarters last year amid changing consumer attitudes toward fast food. To capitalize on the recent surge in momentum, the coffee chain has revamped its rewards program to boost customer loyalty.
In the last few months of 2025, Starbucks’ U.S. comparable store sales increased by 4% year over year, driven by a 3% spike in comparable transactions and a 1% increase in customer spend per visit, according to its most recent earnings report.
Starbucks’ turnaround comes after its CEO implemented major changes to its stores last year, following a period of low sales as consumers nationwide pulled back on fast-food spending.
These changes include pausing price increases, simplifying its menu, introducing new products, cutting order wait times to four minutes or less, and more.
In addition, Starbucks even ramped up its promotions for customers. Most notably, in November, it launched its Bearista glass cup in stores, which sold out almost immediately. Supplies were extremely limited, with only a few cups available, leading to long lines and, in some cases, physical altercations in stores.
That same month, Starbucks also ran its annual Red Cup Day promotion, offering free, limited-edition reusable red cups to customers who purchased a handcrafted holiday drink.
A recent Placer.ai report found that during the week of the Bearista launch, foot traffic in Starbucks stores grew 11.6% year over year. Also, during the week of Nov. 10 (Red Cup Day week), visits rose by 5.8%.
“Placer.ai data indicates year-over-year visit growth for much of the quarter, fueled by promotions like Red Cup Day and Bearista cup, new product innovations like protein enhancements, television advertising campaigns, as well as initiatives like Green Apron Service that are designed to better engage with customers,” said R.J. Hottovy, Placer.ai’s head of analytical research, in a statement sent to TheStreet.
“This past quarter shows all the different levers Starbucks has at its disposal to differentiate itself from those other concepts,” he added.
Starbucks introduces new rewards program tiers and perks
To keep customers coming back to stores, Starbucks has reimagined its rewards program, Starbucks Rewards.
The program now has a new tier structure that has three levels: Green, Gold, and Reserve, according to a recent press release. Starbucks said each tier offers “increasingly personalized benefits, premium experiences and greater earning power.”
Members can move up to the next tier level at any time as they accumulate Stars, and they can track their progress toward the next level in the Starbucks app.
Related: Starbucks announces bittersweet change you will soon see in stores
All tiers offer customers one free drink customization once a month, early access to personalized offers and games, bonus stars with qualifying Starbucks Card reloads of at least $30, and double stars with a personal cup. However, each tier has different exclusive benefits.
- Green: This tier offers a free birthday reward and one star per $1 spent at Starbucks. Stars under this level stay active beyond six months with “qualifying monthly activity.”
- Gold: This tier is earned after racking up 500 stars, and it includes a birthday reward redeemable within seven days. Also, members can earn 1.2 stars per $1 spent, and these stars never expire. Members also have access to four more Double Star Days per year.
- Reserve: Members are granted this status after accumulating 2,500 stars. This tier allows members 30 days to redeem their birthday reward and earn 1.7 stars per $1 spent. Stars also don’t expire, and members have six more Double Star Days per year. Members also receive a free personalized Reserve Card when they reach this tier level and gain access to the Starbucks merchandise shop and Global Coffee experiences.
Source: Starbucks
In addition to these three new tiers, Starbucks added a new 60‑Star redemption tier that offers customers $2 off any purchase. The coffee chain said customers can accelerate their Star earnings toward the next redemption tier by “digitally reloading $30 or more to a Starbucks Card.”
To celebrate its revamped rewards program, Starbucks has added a secret menu beverage to its new Green, Gold, and Reserve tiers, available to order in the Starbucks app for a limited time.
Green-tier members can now exclusively order an Iced Matcha Latte with strawberry purée and banana cream cold foam. Gold members have access to the Iced Caramel Macchiato, which features toasted coconut cream cold foam and a caramel crunch topping.
Reserve members can order a Ube Shaken Espresso with mocha drizzle, ube powder, and chocolate cream cold foam.
Starbucks’ latest move appeals to changing consumer preferences
The revamped rewards program from Starbucks comes as the fast-food industry battles changing consumer habits amid economic uncertainty.
A survey from YouGov in October found that 37% of U.S. consumers are dining out less frequently than they did a year ago, and 69% of these consumers said this is due to eating out becoming too expensive.
Nora Hao, senior sales director at YouGov America, said in the report that while dining out continues to be a staple for Americans, “economic pressures have made consumers more cost conscious.”
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“Seven in ten consumers say they eat out at least once a month, yet more than a third report doing so less frequently compared to last year, citing rising costs and a greater need to save financially,” said Hao.
Starbucks’ decision to make its rewards program more appealing could help yield positive sales results in the long run. The move aligns with the growing trend of consumers relying on loyalty programs to save money, a pattern of behavior that The Wise Marketer and Engage People outlined in a recent survey.
How loyalty programs are shaping consumer behavior:
- Nearly 90% of U.S. shoppers are willing to switch brands.
- Price, loyalty perks and benefits, and promotional offers/discounts rank among the top reasons consumers choose to stay loyal to a brand rather than switch.
- Roughly 80% of consumers said exclusive member discounts motivate them to join loyalty programs, while 87% cited the ability to accumulate rewards.
- A whopping 59% of younger shoppers report buying more often when loyalty programs include experiential rewards.
- Also, 48% said access to experiential rewards makes them less likely to switch to competing brands.
Source: The Wise Marketer and Engage People
In a press release, Engage People chief technology officer Len Covello said loyalty programs must provide meaningful value or risk losing consumer interest.
“Loyalty today isn’t a given — it’s something brands have to continuously earn by delivering tangible and immediate value,” said Covello.
“Consumers are actively seeking rewards programs that make it easy to redeem points in ways that benefit them. When those expectations aren’t met, they move on.”
Related: Kroger CEO pledges key changes to boost customer loyalty
