Canadian Coffee Rewards Programs: How Far Does Your Cup of Joe Go?

Many Canadians start off their day with a cup of coffee bought on the way to work. Comparing the four major coffee brands and their reward programs, McDonald’s Tim Hortons, Starbucks, and Second Cup, my goal is to find out which loyalty program offers the best value for the return on spend when purchasing your morning coffee. 

Beyond the big 4, we also take a look at local cafes and how they compare to the major chains as well as sharing some tips and tricks that can take advantage of. Let’s take a dive and check out whose brew is the most valuable for you!

Coffee Rewards Programs in Canada: The Big 4

There are four main coffee rewards programs in Canada: MyMcDonald’s Rewards, Tim’s Rewards, Starbucks Rewards, and Second Cup Cafe Club.

McDonald’s MyMcDonald’s Rewards

MyMcDonald’s Rewards allows loyalty program subscribers to redeem their points for various food and beverage items. Customers can join the program by downloading the McDonald’s up and signing up for an account. The app can also store your credit card information so that you can order remotely however there are no additional incentives through mobile ordering. 

The earning rate for MyMcDonald’s points is 100 points per $1 spent. Be aware that McDonald’s locations may have prices different from each other, which is set by franchise operators. Seniors can also get a discount on their coffee or tea, though McDonald’s recently lowered the price of coffee to as low as $1 for all customers nationwide.

Redemptions start at 2,000 points, which include hot or iced coffee and tea. At 4,000 points, you can redeem your balance for a latte, which is only available during their breakfast menu.

Although you can see McDonald’s locations in their mobile app when you’re outside Canada, you are not able to collect points or order ahead through the app at international locations.

Tim Horton’s Tim’s Rewards

An iconic Canadian staple, Tim Hortons offers a loyalty program for frequent customers, called Tim’s Rewards. Similar to McDonald’s, their reward system is earned through points which can be redeemed for various drinks and food. Members can collect points when paying at the register by scanning their Tim Rewards points card, their barcode on the mobile app, or with Tim Hortons’ own credit card, operated by Neo Financial.

Redemptions start at 300 points for some bakery items and hashbrowns and scale all the way up to 1,800 points for rice bowls, wraps, and even pizza. Drinks can be redeemed starting at 400 points, which includes hot coffee and tea.

Unfortunately, Tim Horton’s rewards cannot be collected or redeemed at locations outside of Canada.

Starbucks Rewards

Known for crafting drinks for a more premium price, Starbucks offers a rewards program that sees most of its value in customized drink redemptions. Like McDonald’s and Tim Horton’s, Starbucks Rewards awards points, called Stars, can be redeemed for both food and beverages. Although coffee prices are higher than those of the other fast food chains, fewer purchases are needed for drink redemptions.

Coffee prices can vary from location to location, but generally, a Short (extra small) sized coffee averages around $2.55, though it can vary up to 50 cents depending on the store. Although the return on investment may not seem significant for basic drinks, Starbucks often markets personalized offers to a member’s account, which can give hefty point bonuses.

Sometimes, there are double-star days that can be applied to orders made between Tuesday and Thursday once the offer is activated in the app.

Additionally, rewards members can link up their Starbucks accounts with eligible TD credit cards and Air Canada Aeroplan, both of which recently had sign-up bonuses for connecting accounts.

Starbucks Stars can be redeemed for drinks, food items, and Starbucks merchandise. There are various redemption tiers for similar products. For example, you can redeem for either a normal coffee or a latte at different redemption prices.

Although a little extreme, the most valuable redemption would be a $45 abomination of a drink for just 200 stars.

Within Canada, the United States, and Mexico, the Starbucks app can be used at locations in all three countries.  For the most redemption value, you can order drinks in Canada and save the stars for redemptions in the United States, as the prices are generally the same but in US dollars.

However, other countries may have a Starbucks Rewards program but do not accept North American memberships. The only way around this is if you still have your Starbucks Gold card (from 2019 and before) and it has not been deactivated yet. I was not able to use my Starbucks account during my recent trip to Japan, however, one of my relatives was able to use his Starbucks gold card issued from Canada in Hong Kong.

Second Cup Cafe Club

Second Cup is Canada’s homegrown national cafe chain with a loyalty program called the Second Cup Cafe Club. With locations in most of the major cities across the country, this chain has a large presence nationwide. For those in British Columbia, there are only a handful of locations with only one in Metro Vancouver. The territories unfortunately do not have any locations.

Like Starbucks, Second Cup offers a more premium price for its drinks. Prices at Second Cup also vary by location, ranging between $2.55 to $2.75 for a small-sized coffee.

Comparing Value Between The Top 4 Coffee Rewards Programs

Of the 4 major coffee rewards programs, McDonald’s seems to have the best average value for both earning and redeeming points. However, if you hold a Tim Hortons credit card, the return on spend is a little better. 

For espresso-based beverages such as lattes, Starbucks offers the best value plus the ability to add different flavored syrups and even more espresso shots at no additional cost.

Other factors may play into your chosen program, such as which retailer is easiest to access on your morning commute or which is closest to your office. The below table provides an estimated return on spend for the four major programs, to give you a nice summary as to what you can expect to get out of each coffee rewards program.

The Value of Local Coffee Shops & Their Loyalty Programs

Local Coffee Shop Loyalty Discounts

Local coffee shops sometimes offer a loyalty discount after a certain amount of drinks. These may be offered through a physical stamp card, a mobile app, or even just recording your phone number at the till. 

Depending on the establishment, they may also include discounts or benefits for food as well. I found that cafes in my area reward a free drink only after 7 coffees which is easier than some of the large chains mentioned earlier.

Although local cafes may not have a points program, pairing your purchases with a cash back credit card such as the Simplii Financial Cash Back Visa card can help you recoup some of your coffee expenses with up to 4% back on restaurant and cafe purchases.

Discounts Via Gift Cards

Some local cafes use a gift card discount system instead of a stamp card. One local chain I visit is JJ Bean, where loading pre-set amounts to a virtual gift card will give me a discount. For example, for a $20 reload, I only pay $18 and for a $100 reload, I only pay $90.

American Express Offers – Shop Small

Local coffee shops may participate in American Express’ Shop Small program, which is regularly available via Amex Offers. Using the Shop Small program means that spending at these retailers can be partially credited back to your credit card.

Sometimes these offers also stack with gift card purchases at coffee shops, where I was able to take advantage of Amex’s shop small offer on top of the discount provided when reloading a gift card at JJ Bean.

Other Non-Traditional Coffee Retailers to Consider

Convenience stores, gas stations, and even grocery stores may also have their own coffee rewards programs. For example, 7-Eleven members can earn and redeem points from coffee purchases at convenience stores and some gas stations.

Every 7th hot beverage purchase is free in addition to the regular earning rate of 10 points per dollar spent. To drive further value the next time you visit a 7-Eleven, check out our article on how you can take advantage of point programs at gas stations!

Best Credit Cards to Use for Coffee Purchases

If you want to collect points for future travel, the best credit card to use for coffee purchases would be the American Express Cobalt card, as it earns 5x Membership Rewards points per dollar spent on all dining purchases. These points can be transferred to various frequent flyer and hotel loyalty programs, making them incredibly valuable.

American Express Cobalt Card

Apply Now Learn More

American Express Cobalt Card

The American Express Cobalt card earns Membership Rewards points and gives cardholders the opportunity to earn 5x Membership Rewards on eligible restaurant, food delivery, and grocery store purchases.

In 2024, we selected this card to receive the award Best Credit Card for Grocery Purchases.

Check out our American Express Cobalt card review for more details.

BONUS
15,000 Membership Rewards

MINSPEND
$9,000

NET VALUE
$174+

ANNUAL FEE
$156

FOREX FEES
Yes

EXPIRY
–

For Tim Hortons, you can apply for the Tims Financial Mastercard which can earn you a decent amount of Tims Rewards points if you buy from them regularly. Sometimes, Tims Financial offers sign-up bonuses for the card, up to 5,000 Tims Rewards points which is worth at least 12 free coffees. There is also a secured credit card option in case applicants are worried about credit checks or bad credit.

Finally, the Simplii Financial Cash Back Visa card is a fantastic card for coffee purchases as it earns 4% cash back at restaurants and coffee shops, all with no annual fee and a low-income requirement of $15,000.

Simplii Financial Cash Back Visa Card

Apply Now Learn More Earn $60 in FlyerFunds upon approval.

Simplii Financial Cash Back Visa Card

The Simplii Financial Cash Back Visa card earns cash back and gives cardholders the opportunity to earn up to 4% cash back on purchases at restaurants, bars, and coffee shops.

Check out our Simplii Financial Cash Back card review for more details.

BONUS
$50 cash back

MINSPEND
$500

NET VALUE
$50+

ANNUAL FEE
$0

FOREX FEES
Yes

EXPIRY
Oct 31, 2024

Beyond that, there are many other great credit card options that earn elevated earning rates on dining and drinking establishments, as discussed in our article: Best Credit Cards for Dining Out for Canadians.

Conclusion

To some, coffee is essential for starting the day off. For those who spend at least a dollar a day on coffee, learning how to recuperate points or value back from their daily double-double could help their wallet. 

Tim Hortons seems to have the best value in earning points before redeeming using their affiliated credit card. If you don’t want to get another credit card, McDonald’s is not a bad option either for coffee redemption value. Beyond the big chains, some local cafes might have a better loyalty program with fewer purchases required. Learning about the different coffee loyalty programs can be valuable to saving money and rewarding yourself once in a while.

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