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Menu Prices Are Rising, But Loyalty Programs Can Help Restaurants Stay Ahead

Modern Restaurant Management

This menu price inflation has a number of causes, from higher raw-ingredient costs to an unprecedented labor shortage in the hospitality industry. Rewards for Loyalty. Many restaurants woo diners by offering them incentives in the form of rewards for their loyalty. It’s a strategy that seems to be paying off.

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Restaurant Loyalty Programs to Boost Revenues

Cheetah

Restaurants, retailers and airlines have been using loyalty programs to drive revenue for nearly three centuries. From their humble, though ingenious, beginnings as copper tokens and stamps, through the era of credit card clubs, to today’s mobile apps, loyalty programs have become indispensable marketing tools.

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Why Restaurants Should Lean Into Loyalty Programs As a Way to Increase Direct Sales

Modern Restaurant Management

As a result, restaurants have turned to third party delivery providers in order to help meet the growing demand for off-premise orders, but these providers are cutting into restaurant’s razor thin profit margins. By using loyalty programs as a way to encourage customers to order directly.

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Enticing Restaurant Customers with Loyalty Programs and SMS

Modern Restaurant Management

The best customers are returning ones as members of top-performing loyalty programs are 77 percent more likely to choose their brand over competitors. Loyalty programs create those moments and start those familiar brand conversations, giving customers extra incentive to come back and stay engaged.

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Five Ways to Enhance and Improve the Takeout and Delivery Customer Experience

Modern Restaurant Management

Less than two decades ago, restaurant-quality meal delivery was largely limited to pizza and Chinese takeout. Today, the global food delivery app industry is predicted to reach $320 billion by 2029 — up from $140 billion in 2022. When it comes to delivery, you can take the process into your own hands.

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Staying In Is Here to Stay. What Does that Mean for Restaurant Loyalty Programs? 

Modern Restaurant Management

Over the past year, many restaurants have reduced the stress of the system by having consumers order online, by phone or mobile app, while additionally offering curbside delivery at the nearest point of retail. Throughout 2021 and beyond, that answer will largely depend on how restaurants adjust their loyalty programs.

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Keeping Up with Diners’ Expectations Amid Rising Prices

Modern Restaurant Management

But two non-negotiables have remained strong for diners: convenience and loyalty. The NCR Voyix 2024 Digital Commerce Index revealed nearly half (48 percent) of consumers dine out less than they used to because inflation is top of the menu. In doing so, they improve the customer experience, which, in turn, increases loyalty.

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