Is Starbucks Rewards Still Worth it?
Starbucks Rewards is one of the longest-running loyalty programs in the restaurant industry, and since its initial launch in 2008, it has undergone at least half a dozen iterations. Some major, some minor. But none more rewarding for members. That’s what happens when a loyalty program becomes a victim of its own success: costs skyrocket, and brands scramble to close loopholes their most savvy (and let’s be honest, slightly devious) customers exploit.
So, is the current program still worth it? For the caffeine-addicted crowd hitting Starbucks 3-4 times a week: yes. For everyone else: meh. As our review shows, Starbucks Rewards isn’t exactly winning in the value department. However, if you know how to work the program (see our Pro Tips below), you can still earn some decent rewards from it.
Photocredit: Upsplash
How it works:
The program is thankfully simple, and their digital engagement remains world-class (even if the in-store experience has been hit or miss lately).
· Earn 1 star per $ if you pay with cash or debit/credit card (“pay as you go”).
· Earn 2 stars per $ if you preload funds to your Starbucks account via gift card or debit/credit card.
💡Pro Tip: Visit Starbucks more than once a week? Preload your funds. That 100% earning boost is a game-changer, as you’ll see later.
· Birthday Gift: One free drink of your choice (yay!) but only redeemable on your birthday (boo!).
💡Pro Tip: Starbucks frequently offers extra star-earning challenges to its members. They’re personalized, they’re tempting, they are sometimes more work than they give back, and they almost always require you to opt in via the app. However, to squeeze better value out of the program, it’s almost necessary to take advantage of them.
Partnerships worth a look:
Starbucks has linked up with Delta, Bank of America, and Marriott Bonvoy to boost savings and earnings, and these are a rarity in restaurant programs, so kudos to Starbucks for having these.
✈️ Delta: Link accounts to earn double stars on travel days + Delta miles when you reload. Value: Meh. You’ll earn a few miles, but unless you’re a Diamond Medallion, it won’t get you far.
💳 Bank of America: Link your account for 2% cash back plus bonus stars on in-app purchases. Value: Highly rewarding.
🛏️ Marriott Bonvoy: Earn double stars when staying at Bonvoy hotels. Value: Rewarding. Great for road warriors.
How you Redeem:
Here’s where Starbucks does better than most: almost the entire menu is up for grabs for redemption. (Looking at you, McDonald’s and Wendy’s)
Redemptions start at 25 stars and go up to 400 for merch. Most drinks fall in the 100-200 star range.
The good news: 🙂
You decide when to cash in stars for a Reward.
Redeem multiple free items in a single order (hello, free sandwich + coffee).
Drink redemptions cost the same no matter the size.
💡Pro Tip: Order a Venti when redeeming. More caffeine, same stars, more value.
The not-so-good part: 😞
Stars expire 6 months after the last day of the month they were earned, regardless of your activity. This is a concerning trend in restaurant programs that needs to be changed. Allow members to hoard points! Ok, getting off our soap box now.
What’s the Value:
(Note: by “return value” we mean how much you save relative to how much you had to spend to earn it. For example, if you spent $100 to earn enough points to redeem $10, that’s a 10% return value.)
If you preload funds and earn 2 stars per $, you’ll snag a free drink (100-200 stars) after spending $50-$100. Translation: If you’re dropping $6 per visit, a freebie comes every 8-16 visits which is pretty good if you are a 3x+ a week visitor. If you don’t pre-load your funds, you’ll have to wait 16-32 visits to earn a free drink. Bad? No. Great? Also no.
Return values:
Pay-as-you-go (1 star per $): ~2%-5% back
Preload (2 stars per $): 6%-10% back
If you’re not ordering the largest size? These return values plummet fast.
Our chart below shows return values across a sample of Starbucks menu.
Compared to other chains:
McDonald’s, Wendy’s, and Chick-fil-A hover closer to 10% returns or even higher on some items (with CFA offering full-menu redemption).
Dunkin’s espresso drinks sit at 6%-7% but jump to ~10% for hot or iced coffee, which is much better than Starbucks. And your points don’t expire as long as you are active.
All this is to say that the brand that practically founded digital restaurant-level rewards is now offering one of the lowest values for your points… or stars.
(Disclaimer: Menu prices can vary among different Starbucks restaurants. The prices we used are estimated based on what we are seeing in our home city of Boston and available internet information and include the largest size. So return value is approx).
summary & verdict:
What’s good about Starbucks Rewards:
Allows reward stacking
Lots of promotions to earn extra Stars
Can be redeemed for almost any menu item
Drink redemptions are for any size
Decent partnerships to save more
What’s not good:
Mediocre return value unless you preload funds
Birthday drink only valid on your birthday (don’t we have other places to be on this day?)
Stars expire after 6 months (even if you’re active)
For pre-loaders who are visiting more than 3- 4 times a week, the program offers a pretty good return value and flexibility for how to use your points. So Rewarding!
If you are a Pay-as-you-go member who frequents Starbucks less than 3 or 4x a week I doubt you will feel this program is rewarding and so we give our Meh rating.
Leave us a comment! Do you agree or disagree? Any further tips about Starbucks Rewards?
