Loyalty programs help make dining out more affordable for younger Canadians
A recent survey of Canadians by Angus Reid found that four in 10 Gen Zs are using a restaurant app or rewards program to get discounts at quick-service restaurants.
Loyalty programs are one way restaurants can build stronger relationships (stickiness) with their guests, help drive top-line sales and improve the perceived value of every visit.
51% of quick-service restaurants offer a loyalty program, compared to 29% of full-service restaurants. Points-based loyalty programs are the most commonly used at both quick- and full-service restaurants, while the share of respondents that use promotional rewards and online rewards is essentially the same.
Given that guests are seeking value more than ever, having the right loyalty program for your restaurant can help drive traffic and attract and retain new guests. This is especially true when it comes to Gen Z, who are the biggest users of loyalty programs. For younger generations, a modern restaurant loyalty app has to offer more than just rewards, but also offer guests a customized experienced through personalized recommendations and offering preferred payment options. This will drive repeat visits and engagement with your business.
There is additional room to grow as well as the average number of loyalty programs Canadians have signed up for remains below US levels across all generations.
For more information on loyalty programs and other foodservice trends click here.
As the Chief Economist and Vice President of Research for Restaurants Canada, Chris Elliott manages and produces a comprehensive research program that has made Restaurants Canada a leading source of information for and about Canada’s nearly $120-billion foodservice industry. Chris tracks and analyzes key industry and economic indicators and translates them into member reports and publications. He also provides research to support Restaurants Canada’s lobbying efforts on issues that affect foodservice operators – from payroll taxes to food costs.
Chris has worked with Restaurants Canada for over 20 years, has a Bachelor of Arts and Master’s Degree in Economics and specializes in economic modelling and forecasting.
