Why MIXT Is Leaning On Loyalty To Navigate Pandemic-Induced Challenges

The pandemic has wreaked havoc on restaurants since its onset last March, permanently closing some eateries altogether while halting expansions of even the most thriving and digitally savvy quick-service restaurants (QSRs). San Francisco-based fast-casual salad chain MIXT is one such QSR whose expansion plans were tabled by mandated closures of indoor dining rooms when the health crisis struck. The company, which offers locally sourced mixed green salads, grain bowls and sandwiches, had grown from a single diner in the Bay Area in 2005 to as many as 20 locations in California, Arizona and Texas. The pandemic not only put the brakes on the chain’s expansion but also shuttered nearly half of MIXT’s locations, according to co-founder and CEO Leslie Silverglide.

“Coming into March last year, we had a very thriving business that was growing very quickly,” Silverglide told PYMNTS in a recent interview. “We had digital ordering, payment and delivery [options], but the majority [of our business] was walk-in. Sales dropped by 80 percent in five days. It’s certainly been the hardest and most challenging time of the business, trying to figure out and navigate it.”

The pandemic’s early strictures prompted Silverglide to pare down her plans to three key objectives: keeping as many workers employed as possible, continuing to serve guests food they love and — above all — making sure MIXT survived for the long haul. Store locations in areas dense with offices such as the financial districts of Los Angeles, San Francisco and Dallas suffered the most from lack of sales, forcing nine of her locations to close — and remain shut.

“The majority of our locations are in the Bay Area, and it’s certainly the most locked-down area in the country,” Silverglide said.

Meeting New Contactless Needs

The QSR chain lacked some features for reaching more customers at speed during the pandemic, such as drive-thru lanes, but fortunately, it was able to compensate: MIXT was among the first restaurants to contract with San Francisco-based online food delivery service Caviar, which was acquired by DoorDash.

Silverglide explained that this arrangement with a third-party delivery platform was crucial in not missing a beat when the pandemic caused restaurants to adjust their strategies overnight.

“It was very beneficial for us because we weren’t scrambling to get anything in place,” she said. MIXT accepts orders and payment through its mobile app and website, in addition to having chip readers for customers who prefer to purchase in-store with plastic cards. The chain also offers curbside pickup options for its patrons, who can text the restaurant when they arrive so staff will deliver the food to their vehicles.

Upgrading Rewards Software For Improved Loyalty Offerings

MIXT threw itself into its pivot further by launching a new, upgraded loyalty program in December to help drive engagement and build long-term customer relationships. The new program provides MIXT with valuable customer-preference data that enables the company to target patrons with specific deals based on previous orders. The program would not offer the reward of a free salad with a steak, say, to a customer who orders only vegetarian dishes, for example.

“[The new loyalty program] gives us a tremendous amount of flexibility in [offering] rewards and points,” Silverglide said. “Now customers can choose how they want to use their points so they can [opt] for free meals, drinks [and] extra things.”

The program is too new to determine whether users are ordering more because of their membership, she said, but recent data points to the strong potential of such programs to help struggling restaurants weather the pandemic’s ravages. PYMNTS’ Restaurant Readiness Index, a collaboration with Paytronix, found that 39 percent of all restaurant customers would likely spend more if their usual eateries offered loyalty and rewards programs — yet only 62 percent of restaurants offer them.

MIXT is one of many QSR chains across the U.S. working to survive despite the pandemic’s setbacks. These businesses stand a fighting chance if they continue to offer a greater variety of contactless options and focus on revamping and leveraging underutilized tools — such as rewards programs.