Fast-casual restaurants lean on loyalty programs amid consumer pullback

As some consumers pull back on spending between economic uncertainty, the fast-casual restaurant chains are bending on prize programs to pull them back.

The loyalty program, which offers exemption or added allowances to return to customers, has infected with a good bonus for restaurants. Cost-focal foods prioritize the price, brands like brands Chipotal, Starbucks, To move a horse around in a circle And other customers are using awards for the return and sometimes the creation of habits beyond coupons.

“In difficult times, the loyalty programs become more necessary,” Peter Father said, a marketing professor at Wharton School at Pennsylvania University. “They become an essential component to build and maintain relationships.”

In the 12 months ended in May, according to the black box intelligence data, the restaurant industry saw an increase in monthly traffic only once in November. As dinner goes to restaurants less often, sales conflict. Only 43% of the restaurant brands tracked by the black box reported an increase in equal-store sales in May.

Consumers who are involved in loyalty programs go more often to restaurants, which make 22% more visits per year in eateries, Circle dataThe market research firm found that they also look at the brands that are doubled at the rate of non -namabers.

Coffee veteran Starbucks In its second quarter, he reported 34.2 million active award members and said that more than 59% of its American company -owned transactions came from those members. Thick Similar success has been observed: in the first quarter of 2025, more than 42% of its total shop sales came from digital business, including the Loyalty Program users.

Chipotal More than 20 million active awards are members. This loyalty program sells an average of about 30% on an average each day and according to the company, helped in the Burito series to avoid major value growth.

“There is a truly strong brand loyalty among our members,” CNBC said. “We are really focusing on joining and doing so with our members that really resonates with them.”

Driving loyalty is important for the choice of chipatl and starbucks. In the first quarter, Chipotl recorded a decline in the same-store sales for the first time since 2020 and said it was seen. A “recession” in consumer expenses. Meanwhile, Starbucks’ Same store sales have fallen For five straight quarters.

Kava is fucking with industry trends Strong sales growthBut Wall Street face pressure to maintain its rapid expansion.

To move a horse around in a circle Started its award schedule in October 2024 To give customers more flexibility as to how they earn and use numerals. Members can earn each travel points and can redeem them to specific items such as PITA chips or complete entry. The program also includes limited time proposals and in-app challenges. At the end of March, the company celebrated National Pita Day Rolling A mascot and members called “Peter Chip” offer the beaten chips.

Kava’s Chief Marketing Officer Andrew Ribun said, “Guests prefer to watch periodic surprises and happy moments, where we can reward them with beaten chips or other brand offerings.”

Kava rewards The program now has more than 7 million members. According to Ribun, a new tier system is expected to be launched soon.

Chipatl launched a seasonal campaign this year It is called “summer of extra”. This campaign is giving more than $ 1 million in free boaritos, encouraging customers to racks visits and competing to become a top chipll visitors in their state.

“We continue to see activeness from our fans to our fans on social media and active in the enthusiasm and positive response,” West said. “We simply continue to focus on giving them value in ways through programs where customers are given opportunities to earn a specific proposal by ‘plus’ their points’ or display specific behavior.”

Salad series Sweetgreen In this spring, he also left behind his loyalty program, going away from his tier’s membership program which was found to confuse many consumers.

Sweetgreen co-founder and CEO Jonathan Neman said on the company’s quarterly conference call in May, “In a challenging industry environment, where consumers are making more intentional options with every dollar, SG rewards are designed to fulfill this moment by providing a meaningful value to SG rewards.”

Even Starbucks, an established leader, has made changes in award programs. In June, the coffee series eliminated its 25-star reusable cup bonus and replaced it with double stars throughout the purchase. While the change was controversial among the loyalists, who claimed that the earning capacity had reduced, the coffee series stated that the participation is stable.

Of course, free awards come with tradeoffs. Promotion cuts profits in an industry that faces tight margin at the best time. The restaurant chain hopes that they spend free long-term loyalty and full-value items.

Long -term victory

The brands navigating economic pressure are seeing that loyalty programs are helping to run the trips.

Thick Started its loyalty system in early 2024Going into a coin-based structure that allows customers to faster and redeem the awards in more items. Customers now have access to more than 14 menu items through the award program. This flexibility has given rise to more frequent trips, said David Daniel, Chief Marketing Officer of Potbeli.

“We saw a lift almost immediately in terms of engagement,” said Daniel. “The response has been incredibly positive.”

Chicago-style restaurant Portalo Appeared in loyalty game in March “Portalo’s allowances.” Instead of using a traditional app, the program uses a digital wallet system and focuses on frequency. It tracks how many times the customers go and the awards go as the badge.

“It gives flexibility to change how the program is deployed,” said Garat Cairn, Portalo’s strategy and Pakistan vice -president, told the CNBC. “This is not a requirement to a redesign and resume for an application. It was a great way for us to achieve the program in a branded and easy way.”

The company is targeting 1.5 million to 1.7 million sign-ups by mid summer.

– Amelia Lucas and Jacob Prauk of CNBC contributed to this report.