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Starbucks
is seeing early signs that changes to its loyalty program are paying off as value-minded consumers take advantage of its rewards, CNBC has learned.
Last month, the coffee chain brought back tiers to its North American Rewards program, added “free Mod Mondays” for drink customization, offered double points for using a reusable cup and extended the amount of time for members to redeem their birthday award. The revamp also cut the number of stars — or points — earned per dollar spent when paying with a preloaded Starbucks gift card.
Starbucks relies on Rewards to get customers to visit frequently and spend more money on their drink orders. In fiscal 2025, the transactions linked to the loyalty program accounted for 60% of the company’s revenue. Those loyal customers are all-important to the chain’s turnaround; while its troubles began when occasional customers stopped visiting, its traffic suffered as it lost active Rewards members, too.
