Nearly half (44%) of consumers participate in loyalty and rewards programs at limited-service restaurants, according to a joint study from Technomic and American Express.
Those consumers that participate in programs at limited service restaurants most frequently mentioned affiliation with Domino’s Pizza, Dunkin’ Donuts, Panera, Starbucks, and Subway. One third of respondents have signed up for at least one program at a full service restaurant: Applebee’s, Chili’s, Olive Garden, and TGI Friday’s were listed as most frequented.
The joint study titled, “Diner Loyalty in the Digital Age,” examined how the digital revolution is changing guest expectations at both limited-service and full-service restaurants. Loyalty programs are increasingly prevalent in the restaurant space, and according to the study, diners are aligning themselves with brands that reflect their lifestyle and expect to be rewarded accordingly.
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Here are some other takeaways from the study:
- 47% participate in more restaurant rewards programs than two years ago, while 12% have cut back
- 63% participate in a program that uses a plastic card that can be entered into a POS system
- 29% participate in a program linked to their smartphones
- 92% of those who participate in a program that offers mobile payment find it useful
- Eight of 10 participants say they are more likely to frequent a restaurant if they are part of a loyalty program
Consumers are starting to expect restaurants to offer a rewards system, and those that don’t are missing out on a valuable opportunity, the study found. The digital revolution has impacted the restaurant industry, making loyalty programs a hot topic among restaurant owners who want to differentiate their experiences.
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Currently, only three out of 10 loyalty-program participants are linked to one or more restaurant rewards programs via their smartphones. More than six out of 10 have a plastic loyalty card or cards that can be swiped at the point of purchase. Three out of 10 carry at least one old-fashioned paper punch card that offers a free or discounted item after a certain number of purchases. Other respondents volunteered that they are registered with a rewards program with a keychain fob, via their phone number (which can be entered at point of purchase), or through an online ordering system that recognizes them.