Transforming Challenges into Opportunities: How Restaurants are Winning with Loyalty Programs

Imagine transforming casual diners into loyal advocates who consistently choose your restaurant over the competition. With the right strategies, this is possible. PAR Punchh^®, a leader in customer loyalty and engagement solutions, proudly announces the release of its first annual "PAR Punchh Loyalty Trends Report." This essential report provides a sneak peek into how innovative loyalty programs are reshaping the dining landscape and driving unprecedented customer engagement.

As the restaurant industry contends with economic pressures and changing consumer behaviors, this report offers vital insights. Faced with rising prices and higher expectations, diners are seeking value and rewards through loyalty programs. This report, based on Punchh's extensive platform powering over 30% of top 100 restaurant brands, highlights the strategies that are turning these challenges into golden opportunities.

“PAR Punchh powers 78,000 restaurants monthly, which makes us the leader in restaurant loyalty marketing,” said Savneet Singh, CEO of PAR Technology. “With that scale and the vast amount of data on consumer behavior, it’s important for us to release our insights and findings on loyalty behavior so our restaurant partners can better understand and react to changes in the market landscape.”

The PAR Punchh Loyalty Trends Report presents important insights into the innovative ways top restaurants are using loyalty programs to meet market challenges and elevate customer engagement. Key findings include:

• Breakfast and Menu Innovations: As more people return to their offices and adapt to new routines, there has been a notable increase in morning sales. Loyalty programs have been pivotal in this trend, offering targeted messaging and incentives. Additionally, casual dining brands have successfully sparked interest in breakfast through menu innovations, healthier items, personalized offers, and optimized ordering channels, aligning with consumer shifts observed with remote work schedules. This aligns with other findings, which emphasize the impact of changing work patterns on dining habits and the increased focus on morning sales.

• Omnichannel and In-Store Ordering Impact: The report highlights the value of both omnichannel and in-store ordering. Guests using multiple ordering channels visit more frequently and purchase at higher volumes, emphasizing the importance of technology in enhancing customer experience. Additionally, the resurgence of in-store ordering, accounting for just under 40% of transactions last year, highlights the need for effective on-premise POS systems to cater to a significant customer group.

• Loyalty Sales Growth and Gen Z Engagement: To offset higher prices, customers are increasingly seeking incentives from their favorite restaurants, driving a 12% increase in loyalty sales from 2022 to 2023. This growth far outpaces the 5% overall increase in consumer spending at restaurants. Successful loyalty programs have also improved their digital strategies, resonating strongly with Gen Z, who accounted for 25% of total loyalty sign-ups. This group’s digital engagement preferences highlight the importance of digital and mobile solutions in capturing younger consumers' attention.

In a competitive market, understanding and leveraging these trends can set your brand apart. Strategic loyalty programs are not just about retaining customers—they are about creating an emotional connection that fosters long-term loyalty and profitability.

Discover the Full Report

Gain access to the full range of insights to enhance your loyalty strategy. Download the PAR Punchh Loyalty Trends Report for detailed analysis, strategic recommendations, and actionable data to drive your brand's success.

For more information and to download the full report, visit partech.com.

About PAR Punchh:

PAR Punchh®, part of PAR Technology Corporation (NYSE: PAR), provides advanced loyalty and customer engagement solutions for top restaurant brands. Our AI-powered platform enables personalized campaigns at scale, driving guest engagement and loyalty sales. With seamless integration capabilities and compatibility with over 45 different POS systems, we ensure data-driven insights and tailored promotions. We help restaurants boost revenue, average check size, and repeat business through personalized offers across in-store, online, SMS, email, and in-app channels. With over 200 partners and a dedicated team of experts, we develop loyalty programs that exceed business goals. To learn more, visit partech.com or connect with us on LinkedIn, X (formerly Twitter), Facebook, and Instagram.

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