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Report: Diner Loyalty in the Digital Age

[Source: National Restaurant News]Screen-Shot-2014-09-11-at-4.04.36-PM1
A recent report indicates 44% of consumers participate in loyalty and rewards programs at limited-service restaurants.

The report, called Diner Loyalty in the Digital Age from Technomic and American Express. examined how the digital revolution is changing guest expectations at both limited-service and full-service restaurants. Loyalty programs are increasingly prevalent in the restaurant space, and according to the report diners are aligning themselves with brands that reflect their lifestyle and expect to be rewarded accordingly. The 44% of consumers that participate in programs at limited service restaurants most frequently mentioned affiliation with Domino’s Pizza, Dunkin’ Donuts, Panera, Starbucks and Subway. One third of respondents have signed up for at least one program at a full service restaurant, with Applebee’s, Chili’s, Olive Garden and TGI Friday’s listed as most frequented.

    Other results from the survey include:

  • 47% participate in more restaurant rewards programs than two years ago, while 12% have cut back
  • 63% participate in a program that uses a plastic card that can be entered into POS system, while 29% participate in a program linked to their smartphone
  • 92% of those who participate in a program that offers mobile payment find it useful
  • 8 of 10 participants say they are more likely to frequent a restaurant if they are part of a loyalty program

The conclusion of the report is that loyalty programs are an increasingly powerful tool in driving guest frequency and increasing the size of checks. Consumers are starting to expect restaurants to offer a rewards system, and those that don’t are missing out on a valuable opportunity.

[Photo Source: National Restaurant News]