PROGRAM CARD - Costa Club

Program name: Costa Club
Distinction: beans instead of points, coffee for coffee
Brand / operator: Costa Limited
Family / owner: The Coca-Cola Company (acquired 2019, valued at £3.9bn)
Industry: gastronomy / QSR
Model for the industry: yes
Market: UK (United Kingdom; program available exclusively in Great Britain)
Related programs: no variants in other EU markets
Status: active
Legal / time status: no restrictions
Launch year: 2010 (original Costa Coffee Club); "bean" format introduced approx. 2022-2024
Main type: points-based
Additional type: member-benefit
Cost of joining: free; minimum age 16
Channels: mobile app (iOS/Android; required for new members), physical card (existing members only), Costa Express (earn beans via QR in the app), Click & Collect / Click & Serve
Reach: over 6 million members (historical data; current figure not publicly available)

Comparative parameters (estimated ratings)

Implementation difficulty (1-5): 2 - simple app with QR/POS integration, single market, flat accrual mechanism
Main KPI (impact strength): engagement - medium

Descriptive sections

0. Summary

Costa Club is a free loyalty program for adults (16+) available through a mobile app. Every qualifying drink purchased earns 1 bean; 10 beans are automatically converted into a reward - any handcrafted drink for free. The program is complemented by Swaps Rewards (upgrade a drink for 2 beans) and an annual birthday cake for marketing subscribers.

1. Objectives and context

The program's main goal is to increase visit frequency and digital engagement (app installs and activity). Costa Coffee operates in a highly competitive UK market; the program is intended to maintain an edge over Starbucks Rewards and independent coffee shops. The brand's internal data indicates that registered app users spend 173% more annually than unregistered ones (outside the terms).

2. Target group

The program targets regular visitors to Costa coffee shops in the United Kingdom - primarily commuters, students and office workers who buy coffee to go daily or several times a week. The lower age limit of 16 (from the terms) also suggests openness to younger consumers.

3. Architecture and type

Registration: download the app and create an account (min. age 16); new members do not receive a physical card - app only.
Collecting beans: every qualifying drink purchased (handcrafted, from a Costa Express machine, bundle) = 1 bean; +1 bean for a reusable cup; 1 bean for registration; 5 beans for referring a friend.
Automatic conversion: upon reaching the threshold of 10 beans, the program automatically creates a Reward (free drink); valid for 3 months.
Swaps Rewards: optional - 2 beans = 1 Swaps Reward (upgrade: syrup, plant-based milk, whipped cream or an extra espresso shot); valid for 3 months.
Redemption: scan the QR code from the app at the till or Click & Collect; physical card for existing members.

4. Earn & burn mechanics

Accrual: 1 bean for every qualifying drink (regardless of price or size); an extra bean for a reusable cup; beans are not accrued for other products (food, gift cards) or on purchases with a discount/privileged card
Threshold and exchange: 10 beans = 1 Reward (a free handcrafted drink of any size with max. 5 extras - chocolate flakes and marshmallows excluded); alternatively 2 beans = 1 Swaps Reward (a one-time upgrade)
Reward forms: free drink; Swaps Reward (ingredient upgrade); birthday cake (for marketing subscribers who provided a birth date, valid 7 days); occasional Treat Drops (additional in-app promotions)
Point expiry: beans expire after 12 months of inactivity (no accrual or redemption); Rewards and Swaps Rewards valid for 3 months from issue; account deleted after 2 years of inactivity

5. Emotional value

Costa Club plays on the ritual of morning coffee - every visit is a step toward a free drink, which builds a sense of regular appreciation. The sweet birthday gift (cake) creates a personal, unexpected positive moment. The brand's communication showcases a warm, British aesthetic: "your coffee, your beans, your reward."

6. Gamification

A visible bean counter (progress bar in the app) reinforces the goal-gradient effect
The Swaps Rewards option as a micro-reward engages users before reaching the 10-bean threshold (acts as an intermediary reward)
The reusable cup bonus ties the mechanism to eco-friendly values
The "refer a friend" system (5 beans) drives virality and acquisition
Treat Drops - surprise offers - keep app opens up between rewards

7. Differentiation

Costa Club deliberately simplifies the mechanics relative to competitors: one bean = one drink (no conversion to £ value), zero status tiers. The Swaps Rewards add-on as a micro-exchange for 2 beans is an original solution absent among the main UK competitors (Starbucks, Greggs). Integration with 11,000+ Costa Express machines extends touchpoints far beyond traditional coffee shops.

8. Data and personalization

Data collected: first name, last name, email, birth date (optional), drink transaction history
Processing basis: Costa Privacy Policy / GDPR; separate marketing consent required for the birthday cake and Treat Drops
Personalization: drink suggestions based on order history in the app; personalized promotions for marketing subscribers (outside the terms)

9. Technology

Costa Coffee mobile app (iOS and Android); QR code as the identifier at the point of sale
Integration with POS systems in coffee shops and Costa Express machines (QR on the machine screen)
Click & Collect and Click & Serve: full integration of accrual and reward redemption
Loyalty platform provider: not publicly available; build supported by Vega IT (outside the terms)

10. Communication and lifecycle

Communication channels: push notifications and email (for marketing subscribers); in-app Treat Drops
Onboarding: 1 starter bean after registration; communication leading to the first reward
Retention / reactivation: notifications about expiring beans and rewards (Costa states it does not guarantee reminders - responsibility lies with the user); after 12 months of inactivity beans are forfeited; after 2 years the account is deleted

11. Conclusion / inspiration for the almanac

Costa Club proves that simplifying the mechanics (1 bean = 1 drink, without value conversions) can increase the visibility of value to the customer and raise visit frequency. Swaps Rewards as an intermediary reward is a pattern worth emulating for engaging users even before the main reward threshold - it is worth considering an analogous micro-exchange mechanism in your own project.

Sources: official Costa Club terms (costa.co.uk); Costa Coffee program page; Loyalty & Reward Co (case study); Vega IT (technology case study); LoyaltyPass.co (2026 analysis)
Terms (link): https://www.costa.co.uk/costa-club/terms-of-use
Entry compiled on: 2026-06-17

Costa Club