Evolving Starbucks Rewards with Loyalteez

Starbucks just revamped Rewards with a three-tier system. They're solving the wrong problem.

In March 2026, Starbucks introduced tiered earning rates—Green, Gold, and Reserve—hoping to re-engage their most valuable customers. But adding complexity to a closed-loop system doesn't fix what's fundamentally broken: Stars only work at Starbucks.

"Our very best customers are coming 200 times a year, and we were treating them the same as someone who comes once." — Tressie Lieberman, Chief Brand Officer, Starbucks

The solution isn't tier differentiation. It's recognizing that in 2026, customers expect their loyalty to be portable. Let's walk through exactly how Starbucks could evolve Rewards—without increasing investment—using Loyalteez.

The Old Model: Stars Under a Microscope

First, let's understand what Starbucks actually does today. The numbers are impressive on the surface:

The New Tier Structure

The Return Rate Reality

Here's what that actually means for customers:

The Math That Doesn't Add Up

For Customers

1. Complexity — Variable return rates based on tier AND redemption choice
2. Conditional non-expiration — Green members are still on a treadmill
3. High thresholds — Reserve requires $2,500/year (~$208/month on coffee)
4. Closed-loop — Stars only work at Starbucks

For Starbucks

1. Liability management — Every Star issued is deferred revenue on the balance sheet
2. Zero acquisition — Rewards program only retains, never acquires
3. Complexity cost — Tier management, expiration tracking, customer service

The Comparison That Matters

*Requires $2,500/year spend to maintain

A simple cashback card gives comparable value with no strings. Stars need to offer something cashback can't: brand-specific value that travels.

The Loyalteez Redesign

Investment Reallocation

Same 3% investment, fundamentally different allocation:

How LTZ Works as Distribution (1%)

Every Starbucks purchase earns LTZ based on spend:

• $5 coffee → ~5¢ in LTZ (at 1% rate)
• $50/month → ~$0.50 in LTZ

But unlike Stars:

• LTZ is usable across the entire Loyalteez network
• No expiration—ever
• True ownership (customer controls it)
• Real-time value (not deferred)

How Perks Drive Acquisition (2%)

Starbucks creates perks redeemable with LTZ:

• Early access to seasonal drinks
• Secret menu items
• Reserve roastery experiences
• Merchandise exclusives
• Barista masterclasses

Now flip it:

Customers from every other brand in the Loyalteez ecosystem have LTZ. They can redeem that LTZ at Starbucks for these perks.

That's not retention mechanics. That's customer acquisition through value.

How to Implement It

Here's the technical crosswalk. Every Star-earning event becomes an LTZ-earning event:

Purchase Event (Replacing Star Earning)

// When a customer completes a purchase
await fetch('https://api.loyalteez.app/loyalteez-api/manual-event', {
  method: 'POST',
  headers: { 'Content-Type': 'application/json' },
  body: JSON.stringify({
    brandId: process.env.LOYALTEEZ_BRAND_ID,
    eventType: 'place_order',
    userEmail: customer.email,
    domain: 'starbucks.com',
    metadata: {
      order_id: order.id,
      order_value: order.total,
      location_id: store.id,
      // Crosswalk: Old model would earn order.total Stars (Green tier)
      // New model: Same value, but portable and never expires
      legacy_stars_equivalent: Math.floor(order.total)
    }
  })
});

// Result: Customer earns LTZ at configured rate (e.g., 10 LTZ per $1 = 1%)
// Old: 5 Stars that expire in 6 months (Green) or require tier maintenance
// New: 50 LTZ that never expire and work everywhere

See: Event Handler API

Perks (Replacing Star Redemptions)

// Starbucks creates perks in Partner Portal
// Example perks replacing Star redemptions:

// Old: 60 Stars → $2 off (spend $60 at Green tier)
const twoOffPerk = {
  name: "$2 Off Any Item",
  description: "Valid on any food or drink item",
  cost: 200,  // LTZ
  category: "discount"
};

// Old: 200 Stars → Free handcrafted drink (spend $200 at Green tier)
const freeDrinkPerk = {
  name: "Free Handcrafted Drink",
  description: "Any size, any customizations",
  cost: 600,  // LTZ
  category: "freebie"
};

// NEW: Acquisition perk (doesn't exist in old model)
// Customers from other brands can redeem LTZ here
const reserveExperiencePerk = {
  name: "Reserve Roastery Experience",
  description: "Behind-the-scenes tour and tasting",
  cost: 2500,  // LTZ
  category: "experience"
};

See: Perks Service

No Tier Logic Required

// Old model: Different earning rates by tier
const oldEarningRates = {
  green: 1.0,    // 1 Star per $1
  gold: 1.2,     // 1.2 Stars per $1
  reserve: 1.7   // 1.7 Stars per $1
};
const legacyStars = orderTotal * oldEarningRates[customerTier];
// Plus: tier maintenance tracking, expiration logic, upgrade/downgrade rules

// New model: Same rate for everyone
const ltzEarned = orderTotal * 10; // 10 LTZ per $1 (1%)
// That's it. No tiers. No expiration. No complexity.

See: Core Concepts

Before/After Summary

For Starbucks

For Customers

The Headline

Starbucks has 35.5 million active members and 60% of revenue flowing through Rewards.

Imagine that infrastructure rebuilt on open rails—where customers come because they want to, not because their points expire if they don't.

That's not a loyalty program. That's a growth engine.

See Also

• Evolving McDonald's Rewards — Similar QSR mechanics, different scale
• Evolving Sephora Beauty Insider — Another tier-based program ripe for evolution
• E-commerce Loyalty Programs — Developer guide for implementing purchase rewards