Shake Shack Launches Loyalty Program for Online and App Orders

Shake Shack is set to launch its first loyalty offering through its app and website.

The fast-casual restaurant chain rolled out a $1 soda offer for app users starting Wednesday (May 28) and plans to roll out other deals for app users in the future, Shake Shack told PYMNTS in an email.

The company will also introduce a loyalty offering called “Challenges” on June 5. Available through Shake Shack’s app and website, this program will offer discounts to customers who place two orders within specified periods of time, according to the email.

Both initiatives aim to drive traffic, increase frequency and build loyalty, the email said.

Bloomberg reported Wednesday that Shake Shack decided to launch its first loyalty program after completing a successful test earlier this year. In that test, the company found that the loyalty offering led customers to visit more often than they would have otherwise.

A Wednesday blog post by Shake Shack dubs the $1 soda offer a “Shake Hack” and says this is the first such offer, with more to come.

Shake Shack said in a May 1 earnings release that its first-quarter revenue was up 10.5% year over year and its comparable sales were up 0.2%.

“Despite macro uncertainties, we remain focused on creating durable value for all our stakeholders through initiatives to drive same-Shack sales including strengthening our culinary and calendar strategy and driving frequency,” the company said in a May 1 shareholder letter.

The letter said Shake Shack had added a new offer capability to its app and web channels to drive repeat business and expand guest recognition capabilities.

Rewards are a key incentive when it comes to doing business, examining the goods and then checking out after hitting the buy button, according to the PYMNTS Intelligence report commissioned by Visa Acceptance Solutions, “2025 Global Digital Shopping Index.”

The report found that 67% of shoppers said they either earned or wanted to earn rewards at the merchants where they had made their last purchase.

“Preferred payment methods, rewards, coupons, product details and easy-to-navigate digital stores can increase shopper confidence and conversion,” the report said.