As restaurants grapple with declining foot traffic, several fast-casual chains such as Sweetgreen, Noodles & Company, and Panera Bread are extending their loyalty initiatives beyond the digital realm and into their physical establishments.
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GLOAs restaurants grapple with declining foot traffic, several fast-casual chains such as Sweetgreen, Noodles & Company, and Panera Bread are extending their loyalty initiatives beyond the digital realm and into their physical establishments.
Sweetgreen, a health-oriented fast-casual brand with over 200 locations, announced plans to expand its Sweetpass loyalty program, currently exclusive to mobile orders, to in-store customers. Sweetgreen’s CEO, Jonathan Neman, highlighted that their in-store business is rapidly growing and that unlocking Sweetpass functionality within restaurants will enhance its value, particularly considering that “most of our new customers come through our stores to start.”
Noodles & Company, boasting more than 460 locations, indicated that rewards members contribute to 25% of sales. The brand is shifting its focus toward digital menu boards to capitalize on the popularity of in-restaurant dining. CEO Dave Boennighausen emphasized the effectiveness of digital menu boards, noting that “restaurants that have digital menu boards achieved sales of that deal 24% greater than those with physical menu boards.”
Panera Bread also entered the loyalty realm by incorporating Amazon’s pay-by-palm capabilities in its establishments. George Hanson, Chief Digital Officer of Panera Bread, articulated the brand’s goal of merging payment convenience with loyalty identification within their brick-and-mortar locations, noting, “For this to really be impactful in our business, we really need to take the scale and the opportunity that you’re presenting around the payment side and merge that with an ability for loyalty identification.”
Starbucks, in its pursuit of personalization, plans to transition all its stores to brand-forward digital menu boards over the next couple of years. This strategy aligns with their CEO’s vision of enhancing the in-store experience. Starbucks CEO Laxman Narasimhan discussed the coffeehouse giant’s intentions to “move all stores to brand-forward digital menu boards over the next couple of years to further sharpen personalization,” as he mentioned on an earnings call.
More than half of all diners engage in restaurant loyalty programs. PYMNTS’ research revealed that 51% of respondents utilized a restaurant loyalty program, with 49% in quick-service restaurants (QSRs) and 34% in full-service restaurants (FSRs). This trend is likely to continue as rising restaurant prices drive demand for discounts. These programs also serve as a means to encourage users of third-party aggregators to explore direct ordering. “Nearly 50% of our guests experienced the brand in-restaurant, including dine-in and orders to go,” noted Noodles & Company CEO Dave Boennighausen. Additional research from the Connected Dining series revealed that 68% of aggregator users engaged with loyalty programs from QSRs, and 54% did so with table-service restaurants.
Source: PYMNTS
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