Burger King’s Paper Coupon Problem Pits 20% of Loyal Customers Against Digitization Push

BK Coupons

Burger King’s push to get consumers on board with its digital offerings could be alienating a huge portion of its most long-standing customers. On Monday (Oct. 25), the chain’s parent company Restaurant Brands International (RBI) reported its third-quarter 2021 results, with Burger King seeing the highest growth out of the company’s three major quick-service restaurants (QSRs). Now, however, as the chain eliminates the use of paper coupons to incentivize consumers to adopt its digital channels, Burger King may risk losing some of its most frequent customers.

“Historically, Burger King, in the U.S., over indexes in paper coupons relative to peers — something in the neighborhood of three times the number of coupons compared to most of our peers,” RBI CEO José Cil told analysts on a call. “It’s been traditionally an important channel, but the effectiveness has eroded a bit over time, especially with younger consumers, and so we felt, and we do feel, it makes sense to transition … the focus to other consumer-facing channels that we believe, over time, will generate a higher return.”

This focus on the habits of younger consumers could come at a high cost. Research from PYMNTS’ report “The Bring-It-to-Me Economy,” created in collaboration with Carat from Fiserv, finds that these digital holdouts tend to be older consumers. The study found that while 61% of consumers are ordering restaurant-made food online, only 42% of baby boomers and seniors are doing so, making this age group the only one that under-indexes relative to the general population.

See also: Bring-It-to-Me Economy Ascends as Consumers Embrace Home-Centric Lifestyles

This group has a significant amount of spending power. Older consumers comprise 36% of the overall population. Since 58% of this 36% does not order online, that means Burger King is risking losing the loyalty of 21% of its customers.

For consumers who are already on board with digital engagement, however, RBI is working on using data to tailor the experience for each user, building loyalty and driving spending. Cil told analysts that for Burger King, the company is working on “the ability to personalize offers and drive behavior with our CRM,” in addition to investing in a drive-thru experience that recreates the experience of digital ordering in terms of providing relevant, personalized messaging.

As Cil explained, “At drive-thru-enabled locations, mornings are outperforming pre-pandemic levels on average, which shows the overall long-term value of drive-thrus, which is one of the reasons we’ve invested significantly in [them] to modernize our experience with outdoor digital menu boards and loyalty integrations.”

For much of this year, Burger King has been testing a program that uses Bluetooth to identify Royal Perks loyalty program members, displaying their previous orders on menu boards to make the experience feel more personal, boosting conversion.

Related news: Restaurants Race to Offer Most Efficient AI Drive-Thru Experience

These initiatives can go a long way toward incentivizing consumers to engage with the brand’s rewards program. Findings from the July-August edition of PYMNTS’ Delivering on Restaurant Rewards report, created in collaboration with Paytronix, found that 72% of QSR customers consider the availability of customized coupons or discounts when deciding whether to sign up for loyalty programs.

Read more: Two-Thirds of Consumers Find Restaurant Rewards Impersonal  


March Madness 2025 and Beyond: When AI Meets the Big Dance

March Madness 2025 and Beyond: When AI Meets the Big Dance

As the calendar flips to March, college basketball fans are gearing up for another exhilarating NCAA tournament.

In the future, artificial intelligence and cutting-edge technology could change March Madness as we know it. Let’s break down how the digital revolution could transform the Big Dance.

AI Bracketology: The New Sixth Man

AI is already being used to predict brackets. Gone are the days of agonizing over your picks based on team mascots or your alma mater’s colors. In 2025, AI-powered bracketology is the name of the game. Fans can use algorithms that crunch data points, from player statistics to historical upset probabilities, all at the click of a button.

But beware, bracket enthusiasts. While these AI tools promise to boost your chances of winning the office pool, they can’t account for the quintessential March Madness chaos. You know, the instance where AI can predict everything except the inevitable Cinderella story that ruins everyone’s bracket by the second round.

The Rise of the Robo-Commentators

In a move that would be sure to ruffle some feathers, AI-generated commentary could be used for games. Digital play-by-play announcers would never need a bathroom break and potentially be able to recall obscure statistics from the 1957 tournament in an instant.

Virtual Reality Courtside Seats

Can’t make it to the Final Four? Ten years from now, games might happen in a digital stadium, Forbes reported. With virtual reality (VR) technology, fans could experience the thrill of courtside seats from the comfort of their living rooms.

“AI-generated athletes, inspired by the procedural generation techniques of video game developers … could perform in virtual arenas, exhibiting strategies and plays conceived by advanced predictive algorithms,” Forbes reported.

Just be careful not to get too caught up in the moment with streaming. Wouldn’t want to have reports of fans attempting to rush the virtual court after buzzer-beaters have led to an uptick in living room injuries — especially when that flat screen falls over.

AI Coaches: The Ultimate Clipboard Holder

While human coaches still call the shots, AI assistants could one day be indispensable members of the coaching staff. In the next five years, these digital strategists could analyze opponent tendencies and more.

“Building on existing technologies … AI will provide coaches and players with intricate, multi-dimensional data patterns that dramatically enhance both offensive and defensive strategies,” Forbes reported. “These advanced algorithms will analyze vast datasets from numerous games to uncover hidden trends, strategic insights, and predictive cues about opponents’ potential moves.”

The Referee’s New Best Friend: Computer Vision

Say goodbye to controversial calls. Advanced computer vision systems could assist referees in making split-second decisions, from determining if a player’s toe was on the line for a three-pointer to detecting the slightest touch on a blocked shot.

The Hawk-Eye system is already used in tennis and cricket to help determine fouls, Viso.AI reported.

“This system uses a network of cameras to track the ball and then compares the trajectory of the ball to a virtual model of the playing surface,” the report said. “This system is accurate within a few millimeters, which is much more accurate than the human eye.”

The Future of Fandom

As we dive into March Madness 2025, it’s clear that technology will change the way we experience the tournament. From AI-powered brackets to virtual reality arenas, the digital revolution is coming for basketball. But at its core, the magic of March Madness remains the thrill of competition, the joy of unexpected victories, and the heartbreak of last-second defeats.

So, whether you’re relying on an AI to pick your bracket this year, or screaming at a holographic referee in the future, remember to enjoy the ride. In the unpredictable world of college basketball, sometimes the best strategy is to embrace the madness — digital or otherwise.

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