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Fast-casual restaurants lean on loyalty programs amid consumer pullback

A customer is coming out of a Java restaurant in New York on 22 June 2023.

Brendan McDermid | Reuters

As some consumers return to spending due to economic uncertainty, quickly comfortable restaurant chains are leaning on reward programs to withdraw them.

Loyalty programs, which offer discounts or additional advantages for returning customers, are a must for a nice bonus for restaurants. When the cost-minds prioritize the value, like brands ChipStarbucksFight And others use prizes to create the habits of customers to come back and occasionally go beyond the coupon.

“Loyalty programs become more important in difficult times,” said Peter Fader, Marketing Professor at the Wharton School of Pennsylvania University. “They become a necessary component for establishing and maintaining relationships.”

According to Black Box Intelligence data, the restaurant industry ended in May, which ended in May, the restaurant industry saw that monthly traffic increased only once in November. Diners’ restaurants are less visiting the sales struggle. Only 43% of the restaurant brands watched by Black Box reported the same store sales growth in May.

Consumers who participate in loyalty programs visit the restaurants more frequently and make 22% more visits a year, Circan Data. The Sunday research company also frequently tightened the brands that they belong to twice as much as non -members.

Coffee giant Starbucks In the second quarter, 34.2 million active award members reported that more than 59% of the US company transactions come from these members. Potbelly Similar success: in the first quarter of 2025, more than 42% of the total store sales came to a digital job, including loyalty program users.

Chip There are more than 20 million active award members. According to the company, the loyalty program constitutes an average of 30% of an average of 30% every day and helped the pastry chain to avoid major price increases.

“We have a really strong brand loyalty among our members.” He said. “We really focused on interacting with our members and doing it in a way that really echoed with them.”

The loyalty driving is critical of Chipotle and Starbucks. In the first quarter, Chipotle, for the first time since 2020, the same store declined and said he saw “slowdown” in consumer spending. Meanwhile, the same store sales of Starbucks fell for five flat quarters.

Cava examines industrial trends with strong sales growth, but faces Wall Street pressure to maintain rapid expansion.

Be creative

As prize programs win steam, more brands become creative and go beyond the value dinner.

Fight Renewed the award program in October 2024 To provide more flexibility to customers about how they earn and use. Members can earn every visit and use it for certain products such as Pide Cips or Full appetizers. The program also includes limited -term offers and in -app challenges. At the end of March, the company celebrated the National Pita Day. To lie down It offers a mascot called “Peter Chip” and free pide chips to members.

“Guests, Pide Cips or other brand offers, who like to see periodic surprises and satisfied moments that we can reward them with Pide Cips or other brand offers,” Cava’s chief marketing officer. ” He said.

. Java Awards The program now has more than 7 million members. According to Rebhun, a new -layered system is expected to be released soon.

Customers are ordering at a Chipotle Grill Restaurant in Austin, Austin, Austin on April 26, 2023.

Brandon Bell | Getty Images News | Getty Images

Chipotle launched a seasonal campaign this year It is called “Write the extras”. The campaign gives over $ 1 million free Burrito and encourages customers to prepare visits and to compete to be the best Chipotle visitor in their states.

“We continue to see the activations in the construction of this program and excitement and positive reaction from our fans on social media.” He said. “We continue to focus on offering their values ​​through programs in which customers are given their scores ‘plus’ or gaining certain offers by exhibiting certain behaviors.”

Salad chain Sweet greenery It also imitated this spring loyalty program again and moved away from the layered subscription program, which many consumers found confusing.

“Sweetgreen Founding Partner and CEO Jonathan Neman, the company’s three -month conference meeting in May,” Consumers in a challenging industrial environment with each dollar, Sweetgreen Founding partner and CEO Jonathan Neman, the company’s three -month conference meeting in May.

Even Starbucks, a leader in the award programs, changed. In June, the coffee chain ended the 25 -star reusable trophy bonus and replaced it with double stars during full purchase. The coffee chain, although the change between the loyalists who claimed that the earning potential is decreased, said that the participation remained constant.

Of course, free rewards come with compromises. Promotions have become profitable in a sector that faces tight margins in the best times. Restaurant chains hopes to spend this Freebies’ longer -term loyalty and full price products.

Long -term earnings

Brands circulating in economic pressures see that loyalty programs help to carry out visits.

Potbelly Renewed the loyalty system at the beginning of 2024To switch to a coin -based structure that allows customers to use the awards faster and more than more elements. Customers can now access more than 14 menu elements through the award program. Potbelly’s marketing manager David Daniels said that this flexibility leads to more frequent visits.

“We immediately saw an elevator in terms of engagement.” He said. “The answer was incredibly positive.”

Chicago style eatery Portillo’s He joined the loyalty game in March “Portillo’s advantages.” Instead of using a traditional application, the program uses a digital wallet system and focuses on frequency. He watches how often a customer has visited and rewarded the badges.

Portillo’s Vice President of Strategy and Kitchen Garrett Kern, CNBC “provides flexibility to change the deployment of the program.” He said. “It does not require redesigning and restarting an application. The program was a great way for us to take it out of branded and easy to use.”

The company aims to record 1.5 million to 1.7 million by mid -summer.

– Amelia Lucas and Jacob Pramuk from CNBC contributed to this report.

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