The Rise of Exclusivity: VIP vs Traditional Discounting

Offering discounts to incentivize customers to enroll and engage with loyalty programs has been a common practice in the restaurant industry for years. But rapidly rising labor and food costs over recent months has heightened pressure on already tight restaurant margins. With the continued uncertainty of the current macroeconomic climate, brands must find ways to reduce marketing spend while driving more value from their customer base.

Ultimately, restaurant businesses cannot afford to haphazardly discount their products nor should they rely on discounts as the primary weapon to drive traffic. Targeted loyalty benefits focused on access and exclusivity are essential tools to drive cost-effective guest engagement. Loyalty programs have been the key to restaurants’ resilience throughout the COVID-19 era. Programs that enable data capture, incentivize direct ordering in the wake of third party delivery (saving countless dollars in commission fees), and drive engagement have the ability…