McDonald’s App Headed to ‘Summer Camp’ as Restaurants Push Limits on Loyalty

McDonald’s

Fast food giant McDonald’s is joining a slew of restaurants seeking to diversify their in-app experiences beyond the standard ‘earn-and-burn’ loyalty point offerings.

The restaurant chain, which has around 13,500 locations in the United States plus tens of thousands more abroad, announced Thursday (June 30) the launch of its “Camp McDonald’s” mobile experience, a so-called “virtual camp” that consumers access through the brand’s app. The 27-day promotion includes live performance streams from well-known artists, deals on food and special-edition merchandise.

The news comes as, across the restaurant industry, brands are seeking out new ways of rewarding consumers’ loyalty and driving engagement. Some are offering digital-order-only menu items, providing a sense of exclusivity to consumers who enroll in their membership programs. Others are gamifying the experience to keep members active.

Take, for instance, fast-casual chain Chipotle Mexican Grill, which has more than 3,000 restaurants across five countries. Jason Scoggins, Chipotle’s senior director of loyalty and CRM (customer relationship management), said in an interview with PYMNTS that restaurants must now offer “a personalized experience” that includes “touches of gamification” to set their offerings apart.

“Loyalty programs today need to go beyond the transactional ‘earn and burn’ programs of the past,” Scoggins said. “In many cases, loyalty programs are companies’ only opportunity to build a connection with their customers, and consumers expect more from a brand if they are going to open themselves up for that connection.”

Related news: Chipotle: Loyalty Launch Will Help Canada Fandom Catch up to US

Sweetgreen, for its part, announced Monday (June 27) the launch of a rewards experience whereby consumers earn special offers for completing limited time “challenges.”

Read more: Restaurants Roll out Gamified Rewards in Search of Loyalty Sweet Spot

Many consumers interact with restaurants’ loyalty offerings each month, but more than twice as large a share have yet to be engaged, according to data from the March/April edition of PYMNTS’ Digital Divide series, “The Digital Divide: Regional Variations in U.S. Food Ordering Trends and Digital Adoption, created in collaboration with Paytronix.

See also: New Research Shows That Regional Dining Quirks Matter in Tailoring Restaurant Offers

The study, which drew from a survey of more than 2,500 U.S. adults who regularly purchase food from restaurants, found that 30% of consumers had used a loyalty program in the prior 30 days. Additionally, the study found that about one in four consumers consider the ability to earn loyalty rewards when deciding between quick-service restaurants (QSRs), and 17% consider the availability of an easy-to-use app or website.

Ultimately, free food remains consumers’ top priority when signing up for loyalty programs. Research from the August edition of PYMNTS’ “Delivering on Restaurant Rewards” report, created in collaboration with Paytronix, which drew from a survey of more than 2,000 U.S. adults, found that 78% of consumers considered the availability of free food when deciding whether to sign up for loyalty programs and 66% considered customized coupons or discounts.

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

Still, other factors are also important to many consumers. The report noted that 38% considered the ability to gain busy hours access, 35% considered order reminders and status updates, 32% considered customized menus and 27% considered order suggestions.