Over the past 18 months, quick-service restaurants (QSRs) have seen a boom in online ordering and contactless delivery, driving growing interest in loyalty programs as well. Earning rewards on everyday purchases remains the primary reason that consumers join a restaurant loyalty program. Yet, consumers are beginning to expect additional value and engagement from their loyalty programs, and many seek perks that go beyond traditional points systems and free product offers.
In the September/October edition of the Order to Eat Tracker®, PYMNTS explores how QSRs continue to drive customer engagement with innovative and enticing loyalty incentives and how a personalized, digital-first approach that caters to customers’ individual needs is key to QSRs’ continued success in the future.
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Restaurants now realize that loyalty programs are crucial to boosting customer spending, driving the proliferation of new loyalty programs. In fact, the average on-site restaurant customer who uses a loyalty program spends 92% more than one who does not, while QSR loyalty program members spend roughly double what nonmembers spend on food orders, a recent study found. These findings indicate that offering a loyalty program is critical in engaging restaurant customers long term.
Nontraditional foodservice operators are also adopting loyalty programs to attract customers and build their brands. Global Partners convenience store brand Alltown Fresh has rolled out a customer-focused mobile app in partnership with digital guest experience platform Paytronix. Alltown Fresh customers can now contactlessly purchase and pay for custom food orders and earn points via the chain’s Fresh with Benefits loyalty program.
Consumers’ dining habits are still shifting as the pandemic lingers on. The emergence of the delta variant has prompted 59% of United States adults to change their restaurant habits, one recent survey found. Nineteen percent no longer venture out to restaurants, and 9% reported canceling restaurant plans. Restaurant customers also continue to rely on remote ordering options, with 37% ordering takeout or delivery rather than dining out and 19% preferring to eat outside at restaurants.
For more on these stories and other order-to-eat headlines, check out the Tracker’s News and Trends section.
Capriotti’s Sandwich Shop on Harnessing Data Analytics, Omnichannel Outreach to Keep Customers Loyal
As restaurant customers dine in more often while maintaining their newfound digital ordering habits, many chains still scramble to meet their needs across numerous channels. Fast-casual restaurants that tap into data analytics and omnichannel engagement strategies have found success with loyalty offerings and ordering methods that resonate with longtime customers and appeal to new ones. In this month’s Feature Story, Jane McPherson, senior vice president of marketing at Capriotti’s Sandwich Shop, explains how data analytics and cross-channel outreach are helping the chain personalize its customer offerings.
Deep Dive: Taking Restaurant Loyalty Programs to the Next Level
Consumers have long valued restaurant loyalty programs when deciding where to eat and what to spend, but run-of-the-mill loyalty programs are no longer enough to help QSRs stand out from the crowd. This month’s Deep Dive explores what restaurant customers now expect from loyalty programs, how innovative rewards and digital-first offerings can help restaurants better engage customers and how personalized interactions and exclusive perks build brand awareness and drive spending.
About the Tracker
The monthly Order To Eat Tracker®, a PYMNTS and Paytronix collaboration, offers coverage of the most recent news and trends in the restaurant ordering ecosystem.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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