Where once restaurant brands that offered loyalty programs through their mobile apps were ahead of the pack, today consumers are disappointed when an app does not offer them the ability to be rewarded for their spending.
Consequently, on Wednesday (Mar. 9), Glendale, California-based, Dine Brands-owned pancake house chain IHOP announced the soft launch of its International Bank of Pancakes loyalty program, which consumers can access through the brand’s website or mobile app. The program rewards purchases with so-called “PanCoins,” which can be redeemed for coupons, “joyful experiences” and other offers.
“IHOP is introducing a loyalty program into the family casual restaurant category to recognize, reward and engage our guests,” Kieran Donahue, the pancake brand’s chief marketing officer, said in a statement. “We have ultimately created a fun experience that doesn’t take itself too seriously, helping guests realize IHOP’s purpose to spread joy through the accumulation of our one-of-a-kind wealth: pancake wealth.”
The pre-registration period for the program runs from Wednesday (March 9) through March 29, with early registrants getting additional benefits. The official launch of the program is slated for early April.
The concept has been in the works at least since fall of 2021. The United States Patent and Trademark Office’s records show that IHOP filed a trademark application for the phrase, “INTERNATIONAL BANK OF PANCAKES” in late September.
The news comes one week after Dine Brands executives discussed the upcoming launch of the program last Wednesday (March 2) on a call discussing the company’s fourth-quarter and full-year 2021 financial results.
“It’s a true earn-and-burn program that allows our guests to collect and redeem rewards when they dine with us,” IHOP President Jay Johns said at the time. “We believe this program will be a fun and appealing way for us to create even stronger connections with our guests, build brand loyalty and drive incremental visits.”
Related news: Dine Brands Gears up for IHOP Loyalty Launch With Tech Investments
Research from the latest edition of the Digital Divide Report Series, a PYMNTS and Paytronix collaboration, show that a significant share of consumers use loyalty programs at restaurants with table service.
The study, Digital Divide: How High-Tech Consumers Connect To Subscription And Loyalty Offerings, which draws from a survey of more than 2,200 U.S. consumers conducted in January, found that that 44% of consumers use loyalty programs at full-service restaurants (FSRs), significantly higher than the 39% that use these programs at quick-service restaurants (QSRs).
Get the report: Digital Divide: How High-Tech Consumers Connect To Subscription And Loyalty Offerings
Additionally, the results of the survey revealed that one in four FSR customers say loyalty programs are “very” or “extremely” important when selecting a restaurant, and mobile apps are by far the most common way consumers engage with these loyalty programs. Specifically, 56% of FSR customers who are members of loyalty programs access these programs via app, well above the 42% who access the programs by providing their phone number and the 40% who do so via mobile check-in.
Read more: How Restaurants Can Win the Loyalty of High Tech Consumers
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