Restaurants

Starbucks rewards members can now earn even more stars at the grocery store

Key Points
  • Starbucks has more than tripled the number of products eligible for its loyalty program to include more items available in grocery stores.
  • The coffee giant's loyalty program membership has grown 11 percent since last year.
  • Rewards represented 36 percent of U.S. company-operated sales in the second quarter.
Starbucks coffee sits on a shelf at a grocery store in New York.
Michael Nagle | Bloomberg | Getty Images

You can now earn Starbucks Rewards stars for buying your K-cups and ready-to-drink coffees at the supermarket.

Starbucks said Thursday that it has more than tripled the number of products eligible for its loyalty program to include a wide array of items available in grocery stores. The stars earned for these purchases can be redeemed for coffee, food and merchandise at Starbucks cafes.

Starbucks' loyalty program membership has grown 11 percent since last year, bringing the total number of members to 13.3 million, the company said in its earnings report last week.

"When you take 13-point-some million members and you multiply it by an 8 percent increase year-on-year, that turns out to be one enormous number, and that's been a major contribution to our business," Matthew Ryan, global chief strategy officer for Starbucks, said on the earnings call.

Rewards represented 36 percent of U.S. company-operated sales in the second quarter and mobile payment was 29 percent of transactions, the company said.

Adopting mobile ordering has given Starbucks a boost, but hasn't come without pain.

In the first quarter, Starbucks also reported weaker-than-expected same-store sales growth, blaming bottlenecking at hand-off counters for deterring customer purchases. CEO Kevin Johnson said last week that the company has "turned the corner" on this issue.