Foodservice is becoming an even more competitive space for restaurants as more retailers get serious about customer retention. With 42 per cent of Canadian diners belonging to a loyalty app, there is a real opportunity for restaurants and retailers to get attention and drive traffic while building loyalty and retention.
Recently, Tim Horton’s and Canadian Tire partnered up to combine their rewards programs, offering between two and five per cent in Canadian Tire money (along with Tims points) for purchases made at Tim Hortons. With about 53 per cent of (Canadian Tire) Triangle Rewards customers enrolled in both loyalty programs, the partnership aims to drive traffic to both places.
Circle K has recently adjusted their Inner Circle loyalty program, increasing the rewards, adding personalized challenges, and making redemption more flexible for users. The adjustments reflect a more personalized approach by the retailer, tailored to how customers are already shopping.
In addition to boosting loyalty, convenience stores have been steadily increasing their hot food offerings to compete with restaurants throughout the last few years and grow their regular diner traffic. It seems to be working for many stores, as 60 per cent report continued foodservice sales growth, specifically in taquitos and tornados (up 15 per cent), fresh bakery breakfast items (up 7 per cent), and French fries (up 8 per cent). Nearly 60 per cent of convenience stores now offer made-to-order foods, in an attempt to increase their appeal and drive traffic.
In an effort to compete more successfully in the loyalty space, some restaurant chains have revamped, upgraded, or improved their loyalty programs this year.
Pizza Hut relaunched Hut Rewards in the spring, now allowing members now unlock faster rewards, participate in interactive challenges, receive exclusive limited-edition merchandise drops, and have access to relevant digital perks.
Starbucks has received a lot of attention for relaunching its famous program in March to incorporate feedback from its members. The new design moves past simple spend-based point systems to target deep personalization, shaping customer habits, and long-term engagement.
Domino’s Pizza recently redesigned its mobile app for a better user experience, updating data collection for a more personalized experience with customized recommendations, targeted marketing, and faster order tracking.
Subway’s MVP Rewards has been updated, bringing back a new version of the Sub Club, where members earn a free footlong after purchasing three footlongs (or six 6-inch subs), get access to free swag, and receive free rewards like a birthday freebie or free chips.
As the loyalty space becomes even more crowded, operators will need to focus on simplicity, value, and personalization to stand out and maximize the business benefits.
