Build a loyal following
Are you putting your loyalty program to work? Research from Accenture found that 66 percent of consumers in the United States spend more money on brands to which they are loyal. Offering the right mix of benefits can generate a significant boost to sales — one extreme example is Starbucks, which has 11 million members and, as of early 2016, $1.2 billion in customer funds loaded onto its plastic and mobile Starbucks cards, Upserve reports. The brands reaping the biggest benefits from their loyalty programs are using a combination of discounts, targeted marketing and experiential rewards to motivate their guests. Upserve recently assessed some of the most forward-thinking brands in this area. The Palm’s rewards program, for example, carries a $25 fee but that is returned to guests in the form of a $25 gift card after sign-up. Members get changing rewards each month, including exclusive wines and cocktails, as well as substantial discounts on wine. Panera, a longtime innovator in this space, is another to watch, with 28 million members who can easily reorder favorite purchases via the program, receive personalized offers based on those orders, and get recipes and cooking suggestions from the brand. Panera also makes the experience of collecting food more convenient for its members — they can order online, then visit a store and pick up their food from a designated Rapid Pick-Up shelf in the store, avoiding a long wait in line. To maximize your program’s power, Accenture advises you regularly identify and eliminate aspects of it that aren’t working, encourage your members to be your advocates and try to attract new customers through existing ones. Also note that millennials can be tough to attract to these programs — mine your data to understand what range of offerings brings them back.
Prepare for the packaging revolution
The year 1894 brought the “paper pail” now ubiquitous in Chinese food takeout. The early 1960s brought us the cardboard pizza box. Now, in the face of consumer demand for eco-friendly packaging and growing demand for off-premise dining in general, we could be on the cusp of another big change in takeout food packaging. Technomic reports that in 2016, 60 percent of consumers said they would pay more for takeout meals if they were packaged in an environmentally friendly way. That number decreased to 52 percent in 2017, not because the demand for such packaging had fallen but because consumers now expect restaurants to offer it. If you currently provide single-use plastic for your takeout business, it’s time to offer alternatives and work with partners who support them — some third-party delivery partners now notify customers that they will not receive non-recyclable items like straws or packets of ketchup unless they request them. Shake Shack, for one, is now looking to bypass materials that are simply recyclable in favor of options that are biodegradable on their own.
What’s your challenge? Whether you need help developing recipes and concepts, analyzing food costs, fine-tuning purchasing, planning a marketing campaign or managing another aspect of your business, we can provide guidance tailored to your needs. Contact Team Four at firstname.lastname@example.org or 888-891-3103 for more information.
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