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Coffee giant Starbucks just announced its rewards program is about to get a major overhaul. On Thursday, the chain said its newly revamped rewards program will make its debut on March 10. According to Starbucks, it will feature a new, three-tier membership structure that will allow for “greater earning power” for its 35.5 million active North American members.The new program will allow consumers to move through three tiers: green (the starter level), followed by gold, and finally, its reserve membership tier. To achieve gold status, 500 stars are required. To become a reserve member, you’ll need to accumulate 2,500 Stars within a 12-month period. The higher the tier, the more earning potential gets unlocked, with green members earning one star for every dollar spent, gold members earning 1.2 stars per dollar, and reserve members earning 1.7.The company also stated that, in response to customer feedback, it will be allowing customers to access rewards quicker with a new “60-star redemption tier.” After just 60 stars, members will be entitled to $2 off any item.“We’re redefining the industry with customer-focused benefits that set a new standard and ignite fandom,” Tressie Lieberman, Starbucks global chief brand officer, said in a press release. “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. This evolution is a key milestone in our Back to Starbucks strategy and will reinvigorate what it means to be a Starbucks Rewards member.” Starbucks’ announcement comes a day after the company released its first quarter fiscal earnings report, which showed the company made some major strides. Starbucks announced earnings per share of $0.56, just short of the company’s projection of $0.59. However, Starbucks traffic rose for the first time in eight quarters (two years). And, per the report, its earnings exceeded revenue expectations, earning $9.9 billion — more than the $9.7 billion it had anticipated.CEO Brian Niccol expressed optimism about the company’s future on CNBC’s Squawk Box, saying “This is really just the beginning,” Niccol said. “In fiscal 2026, we’re going to be shifting to play offense and to innovate. We’re not finished with our ‘Back to Starbucks’ plan or our broader transformation, but I am confident in our strategy, our progress, the pace of change and the opportunity ahead of us.”The company also outlined a long-term growth strategy, and is projecting that by 2028, U.S. same store sales will grow by at least 3% with operating margins of 13.5% to 15%. According to an analysis by InvestingPro, Starbucks has a market capitalization of $108.41 billion and annual revenue of $37.7 billion. The chain is trading at its Fair Value, with shares up 13% year-to-date.
