Restaurant Brands International’s (NYSE: QSR) Burger King has implemented a nationwide program for orders placed on its mobile app or through the company’s official website. In addition, to deal with competition, Burger King has announced a nationwide reward program for its customers.
What the program offers customers
It is learned that the restaurant chain already implements the program in two-thirds of locations in the U.S. Under the Royal Perks program, customers will earn ten crowns for $1 spent at the chain’s restaurants. Customers can, in turn, redeem their points across a majority of the menu, besides earning everyday perks, including upsizing drinks or fries. With the program being launched at the restaurant, Burger King is hopeful of increasing sales.
Companies have witnessed a spike in customers through loyalty programs
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The pandemic has boosted online sales for eateries. Restaurants like McDonald’s Corp (NYSE: MCD), and Wendys Co (NASDAQ: WEN) have introduced loyalty programs. It is observed that loyalty programs have helped companies like Starbucks Corporation (NASDAQ: SBUX) and Chipotle Mexican Grill, Inc. (NYSE: CMG) witness growth in the number of customers who use their respective apps. In addition, it is learned that loyalty programs have helped companies learn about their customers. According to market researcher NPD Group, in the year that ended in March, digital orders spiked 124%.
Customers already see the benefits of loyalty programs
About a year ago, Burger King reported that same-store sales fell 9.9% compared to a 13% growth this quarter. When home deliveries saw colossal demand, McDonald’s and Wendy’s have registered higher revenue growth in the last few months. Restaurant Brands CEO Jose Cil told analysts on the conference call in July that Burger King needs to work on its focus and pace.
Digital behavior is here to stay
Burger King’s North American chief marketing officer, Ellie Doty, said”
“I think especially as we’ve all gone through the pandemic, we know that a lot of digital-enabled behaviors really ramped up very quickly, and we think this is one that we believe will stay. Guests are really seeing the ease and benefits of being a part of loyalty programs.”
A few months ago, Tom Curtis, who joined Burger King as a chief operating officer, was appointed as head of the U.S. and Canada. RBI shares have gone up 5% this year, and its market value is $29.9 billion. Burger King’s sister chain Popeyes has also recorded strong sales. However, Tim Hortons, the Restaurant Brand’s third chain, has struggled in home ground Canada.
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