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It isn't anytime you pass "a" starbucks. It is anytime you pass the specific starbucks you added to the favorite...

EDIT: Yes full wallet/passbook access from the apple pay screen would be great. This is how the phone is now, so I imagine it will eventually come on the watch.

In my case, I pass many of my "favorite" starbucks all the time. Sometimes I grab a drink, sometimes I don't... Multiple notifications when not needed in my situation = :(
 
It's not a "Notification"... it's a Passbook Pass. It won't stay there after you leave the area... and you can't "Clear" it using Force Push->Clear All.
 
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