NEW YORK, NY - APRIL 12: In this photo illustration, meatless 'Impossible Sliders' sits on a table at a White Castle restaurant, April 12, 2018 in the Queens borough of New York City. The meatless burgers, which sell for $1.99, are about twice the size of White Castle's regular sliders. The patties, made primarily of wheat protein and potato, are the first plant-based burgers sold in an American quick-serve restaurant. (Photo illustration by Drew Angerer/Getty Images)
New York (CNN Business)Coffee shops have used loyalty programs to learn more about their customers and keep them coming back for years. Now, as consumers embrace digital payments during the pandemic, the trend is spreading to restaurant chains who want the same benefits.
Earlier this month, White Castle announced the launch of its first national rewards program, Craver Nation. Customers who sign up for the program get a free combo meal right away, along with other perks through September. They’ll also gain access to discounts and coupons each month.
The rewards program was “something we were thinking about and working on for a while,” said Jamie Richardson, a vice president with the company. But the pandemic reinforced the need for a loyalty program, he said. “Now’s a great time to continue having that more engaged conversation with our customers,” he explained.
White Castle launched a national rewards program this month.
The Mexican chain El Pollo Loco (LOCO), which has over 475 locations, launched its own national program in September. Members earn $5 off for every $50 spent and a free order of chips and guac when they sign up, along with other perks. Wendy’s (WEN) joined the club over the summer with its own program, the first from a major burger chain that focuses on food. The Wendy’s plan grants customers 10 points for every $1 spent, which can be redeemed for free food and drinks within one year.
The trend “was starting to take shape before Covid,” said Morningstar restaurant analyst R.J. Hottovy. “But it certainly has accelerated as more consumers continue to order through phones and computers right now.”
Competition for customers is fierce among fast food restaurants. Loyalty programs are a way to “keep people locked in and more engaged,” said Hottovy. “If you can give one more incentive to order on your platform, it prevents your customers from going somewhere else.”
Even Starbucks (SBUX), which has had a rewards program for over a decade, recently revamped its plan to allow customers to use cash and other forms of payments to earn rewards. Previously, they had to use a pre-loaded Starbucks card. The update “is a game changer” that will help capitalize “on the enormous success of our Starbucks Rewards program,” said Starbucks CFO Patrick Grismer at the JPMorgan Gaming, Lodging, Restaurant and Leisure conference in September.
But there’s no such thing as a free lunch…
Privacy 2024 Recap – some significant decisions, slow progress for reform
The past year saw a few court decisions of note as well as halting progress toward privacy…
Schrems II Judgment Day
The Court of Justice of the European Union (“CJEU“) issued its judgment today in …
