Fast-casual restaurants rely on loyalty programs to attract cost-cautious diners

Fast-casual restaurant chains like Chipotle, Starbucks, and Cava are using loyalty programs to entice cost-cautious diners in uncertain economic times. Restaurants are struggling with declining sales as consumers visit less frequently. Loyalty program members visit restaurants 22% more often and spend twice as much as nonmembers. Chipotle, Starbucks, and Potbelly have seen success with their loyalty programs.

Cava revamped its rewards program to offer more flexibility and rewards like pita chips or entrees. The program has over 7 million members and is planning to launch a new tiered system. Chipotle’s “Summer of Extras” campaign aims to reward customers with free burritos. Sweetgreen and Starbucks have also made changes to their loyalty programs to drive customer engagement and loyalty.

Potbelly and Portillo’s have revamped their loyalty programs to offer customers more rewards and flexibility. Potbelly’s coin-based system allows for faster redemptions across a variety of menu items, while Portillo’s “Perks” program focuses on customer frequency. The restaurant industry hopes these loyalty programs will drive long-term customer loyalty and spending on full-price items.

Read more at CNBC: Fast-casual restaurants lean on loyalty programs amid consumer pullback