As restaurants look to drive loyalty in the face of stiff competition for consumers’ digital ordering, those that reward customers for their spending have the advantage. However, with loyalty programs now the norm, consumers expect more than the standard model, by which they receive a set number of points for each dollar spent to be redeemed for discounts or free menu items.
Fast-casual chain Sweetgreen, for one, announced Monday (Jun 27) the launch of a pilot test of a loyalty program, Rewards and Challenges, whereby members complete tasks (e.g., spending $20 or adding a side item) to redeem offers (e.g., receiving a $4 credit or a free beverage).
“We see Rewards and Challenges as a way to double-down on owned digital relationships and create a more personalized experience for our customers,” Sweetgreen Co-Founder and CEO Jonathan Neman said in a statement. “With approximately two-thirds of our Q1 2022 digital sales coming from owned digital channels, we’re excited to take this next step in our journey of re-envisioning the future of loyalty at Sweetgreen.”
The program is not Sweetgreen’s first foray into loyalty rewards. The company ended the previous iteration of its loyalty program in March 2021, citing the difficulties of the pandemic as a factor in the FAQ section on the restaurant’s site.
Read more: Gearing up to Go Public, Sweetgreen’s Aggressive Digital Efforts May Be Misdirected
Nearly a third of all U.S. consumers use restaurant rewards programs each month, 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. 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 those surveyed had used a loyalty program in the prior 30 days.
See more: New Research Shows That Regional Dining Quirks Matter in Tailoring Restaurant Offers
However, the flat points-per-dollar structure has become so common that today brands are seeking out ways to drive frequency that can stand apart in the sea of available loyalty offerings. Jason Scoggins, senior director of loyalty and CRM (customer relationship management) at Chipotle, said in an interview with PYMNTS this month that loyalty programs that do not offer unique, creative experiences risk falling behind.
Read more: Chipotle Says Loyalty Launch Will Help Canada Fandom Catch up to US
“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.”
Similarly, Austin, Texas-based brand Torchy’s Tacos, which has 100 locations across 11 states, announced the launch of a rewards program earlier this year that offers surprise rewards that members cannot anticipate or control.
See more: Restaurants Roll out Loyalty Offerings Beyond the Points-per-Dollar Standard
“We wanted to build a loyalty program that was not just points and punches; we wanted to build something that was fun and unique and different,” Torchy’s Chief Marketing Officer Scott Hudler told PYMNTS in an interview. “So, the way we built it, it’s not a points-based system, but it’s more of a surprise and delight. The world’s not waiting for another loyalty program. What are you going to do — this sounds cheesy, but — to earn their loyalty for your loyalty program?”
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