As restaurants take the learnings from the early stages of the pandemic and apply them to their long-term digital strategies, many brands are seeking out ways to engage their mobile customers beyond just offering standard loyalty rewards.
In an interview with PYMNTS for the June/July edition of the Order to Eat Tracker®, created in collaboration with Paytronix, Josh Luger, co-owner and co-operating partner of Tampa, Florida-based fast-casual Tex-Mex chain Capital Tacos, discussed how the brand has conceptualized its mobile offerings to meet consumers’ manifold digital expectations.
“We’ve always wanted a program that did more than one thing,” he explained. “Points-based rewards are great, but we really view them as the baseline of any loyalty program.”
Read more: Capital Tacos on the Benefits of a Modern Technology Stack for Loyalty Programs
He noted that the company’s digital offerings include online ordering, gift card options, and a loyalty program that combines the standard rewards model with surprise offers.
To the latter point, many brands have been incorporating unpredictable offers into their programs. Austin, Texas-based brand Torchy’s Tacos, for example, which has 100 locations across 11 states, launched a program earlier this year that exclusively provides rewards that members cannot anticipate or control.
See more: Restaurants Roll out Loyalty Offerings Beyond the Points-per-Dollar Standard
“The way we built it, it’s not a points-based system, but it’s more of a surprise and delight,” Torchy’s Chief Marketing Officer Scott Hudler told PYMNTS in an interview. “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?”
Other brands are leveraging their programs to offer more than just rewards. Take, for instance, subscriptions. One of the most popular examples of this model is Panera Bread’s longstanding coffee and tea subscription, which the brand expanded in the spring to a more encompassing beverage subscription. Members pay a flat monthly fee for unlimited orders of certain drinks, and the offering is exclusively accessible through the brand’s loyalty app.
Read more: Panera Expands Its Beverage Subscription
“Our guests have loved the subscription model and the convenience and value it brings to their daily lives,” Panera Bread CEO Niren Chaudhary said in a statement in April as the brand announced the expansion of the program. “We’re excited to give our guests even more choice and more beverage options to fuel their day.”
Some brands, meanwhile, are using their digital channels to provide a sense of exclusivity, offering online-only menu items or special access to news or events.
Research from the August edition of PYMNTS’ Delivering on Restaurant Rewards report, created in collaboration with Paytronix, found that 78% of consumers considered the availability of free food when deciding whether to sign up for loyalty programs and 66% considered customized coupons or discounts.
See more: Two-Thirds of Consumers Find Restaurant Rewards Impersonal
Yet, significant shares of consumers also reported taking into account less common types of offerings for members. The report, which drew from a survey of more than 2,000 U.S. adults, found 38% considered the ability to gain busy hours access, 35% considered order reminders and status updates, 32% considered customized menus and 27% considered order suggestions.
As such, for restaurant apps to stand out, they need to meet not only consumers’ desire for freebies and discounts, but also their demand for a multi-function digital experience.
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