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COVID-19 is reshaping the way we work and live. Many industries have been turned upside down, not the least of which is the restaurant industry. A study published April 20, 2020 by the National Restaurant Association finds that two out of three restaurant employees have lost their jobs and four in ten restaurants are closed.
Closures compelled by COVID-19 have decimated the industry because most guests are not allowed to set foot in a restaurant. However, many restaurants have leveraged their carry-out and delivery channels to reinvent the method through which their business survives and thrives.
LOYALTY MARKETING IS A STRATEGY, NOT JUST A PROGRAM
Many restaurant brands, from single unit brands to major enterprise brands, have used customer loyalty programs for years to increase their traffic, guest counts and revenue. Some programs have been tactical. More robust programs are strategic and integrate guest visit and transaction data with point of sale platforms. Using data insights derived from loyalty programs, brands are able to identify guests who have become dormant, and reengage those guests. Forward-thinking brands with a loyalty tracking database, CRM tools and measurement technology in place are equipped to shift guest behavior to carry-out and delivery, sustaining their business until the traditional options return. Such brands are developing customized, bundled menu offerings at lower price points to pull guests back into the fold, while showcasing loyalty program features and rewards to keep guests engaged.
PANERA BREAD LAUNCHED A NEW BRAND TO DEEPEN RELATIONSHIPS
Panera Bread has leveraged the My Panera program, its existing delivery platform, and its direct relationship with 25 million guests to shape Panera Grocery. Guests may order traditional Panera items and grocery items (fresh produce, dairy products bread) and have those items delivered to the guest’s home (featuring contactless delivery).
ANTHONY’S COAL-FIRED PIZZA CREATES FAMLY PACKAGES AND CURBSIDE EXPERIENCE
Anthony’s Coal-Fired Pizza, a restaurant group with nearly seventy locations, well-known for its menu items cooked in a coal-fired 900-degree oven, Anthony’s makes the most of its Coal-Fired Rewards loyalty program. Focusing on family-priced dinner packages and Contactless Curbside service, guests may order online and also pick up a bottle of wine to take home (in certain markets).
CALIFORNIA PIZZA KITCHEN HELPS KEEP THE KIDS BUSY MAKING THEIR OWN PIZZA
California Pizza Kitchen (CPK), with 270 locations worldwide, uses its CPK Rewards loyalty program to encourage parents to keep their kids busy with their Build-Your-Own CP Kids Pizzas available in their CPK Market. The company has also rolled out curbside service for a contactless carry-out experience. The brand connects with their loyalty program members while helping to keep the kids busy and give the parents a break. This helps keep members engaged during the pandemic and will help re-engage those members when a traditional restaurant experience is available at CPK.
DEVELOP A PRAGMATIC ROADMAP NOW TO KEEP CUSTOMERS MOVING FORWARD
A loyalty program provides a reason for guests to choose one brand over another when everything else is at near parity. These programs become tiebreakers. Customers typically have a consideration set of restaurants from which they choose. Once a customer is engaged in a loyalty program with a certain brand, that brand is likely to get a greater share of the customer’s spending than it would have otherwise. It’s just that simple.
Leveraging the data to understand guest defection is a bona fide, time-tested method for increasing sales from those most likely to use your brand for carry-out or delivery: those who are highly engaged with your brand.
If you currently have a loyalty program in place, take stock of the program, your use of carry-out and delivery, your pricing and menu bundling. This is a critical time for strengthening current guest relationships while engaging with new guests to build a strong base for the future.
At Brand Federation, we are committed to supporting our members, community and fellow businesses through this crisis. Learn more about the actions we're taking now.
