We’re excited to share the 2024 Loyalty Trends Report, our debut into the loyalty insights arena. As an innovator in restaurant loyalty, we work with brands of all sizes and power 78,000 locations monthly. We tapped into millions of customer interactions to uncover the trends that matter most. This report isn’t just data—it’s a deep dive into the patterns shaping the future of loyalty, crafted by our expert data team and loyalty strategists.
Ever wonder how the big players in the restaurant industry continue to satisfy their loyal customers’ ever-growing appetites, even amid fluctuating economic winds? Well, we’ve got you covered! We’re here to share the top customer loyalty trends and strategic insights that will help you transform challenges into golden opportunities for your restaurants.
Breakfast, Breakfast, Breakfast
Let’s kick off with a major trendsetter – Breakfast and Menu Innovations. With a good chunk of office folks back to clocking in face-to-face, we’ve seen a sizable increase in morning sales. Some savvy brands caught the early bird and spiced up their breakfast menus to match changing morning routines – think more grab-n-go options and new flavors to start the day right.
Smart loyalty plans are baking in a whole new level of customer love for the most important meal of the day. They are capitalizing on personalized offers, healthier options, and super convenient ordering channels in their loyalty programs. Let’s face it, who doesn’t like waking up to a tasty breakfast with a side of rewards?
Prioritize Your Ordering Strategies
The second major trend we’re serving up is the powerful combo of omnichannel and in-restaurant ordering. Guess what? Your guests who mix it up with ordering channels not only visit more but also tend to order more. It’s all about giving them the freedom to order how and when they want – be it for pickup, delivery, or dining in.
Plus, our stats show in-store ordering continues to make a comeback – ringing up almost 40% of transactions. This highlights the critical role of effective POS systems to keep those orders rolling in along with the need for updated interiors that make your dine-in experience truly memorable.
Captivate Gen Z Customers
One more interesting trend transforming the restaurant industry focuses on engaging Gen Z through digital rewards. To offset higher prices, customers—especially our tech-savvy youth—are eager for attractive discounts. This shift in customer loyalty has resulted in an impressive 12% increase in loyalty sales from 2022 to 2023, more than double the overall growth in consumer restaurant spending.
Notably, a quarter of these loyalty sign-ups come from Gen Z, highlighting their affinity for digital solutions. If you’re looking for ways to captivate the Snapchat generation, digital loyalty programs will be your winning strategy.
Overall, our research shows that loyalty programs are a powerful differentiator for those who know how to leverage them. In 2023, average sales growth across the board was solid—4.7% for casual dining, 11.2% for fast casual, and 7.9% for quick service, according to a 2024 Technomic report. Our brands’ loyalty programs blew those numbers out of the water, driving sales growth of 20% for casual dining, 18% for fast casual, and 10% for quick service chains.
That was just a bite. Ready for the whole 🥧?
Satisfy your curiosity for rich insights with our first annual comprehensive PAR Punchh Loyalty Trends Report. Get charts, graphs and detailed analysis along with strategic recommendations based on actionable data to drive your restaurant’s success. Download the full report now!
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