The job market is booming – especially for the hospitality sector. The January jobs report indicated that the U.S. economy added 517,000 jobs in January, marking the lowest unemployment rate in 50 years and dissolving lingering worries about a recession. So how do you keep the talent you’re able to attract? Max Wesman, CEO at GoodHire, told QSR web that setting goals is critical – along with providing rewards when those goals are achieved. That could involve setting a specific target for preparation speed, order accuracy, or some marker of customer service provided, then providing an incentive for staff to come together and achieve the goal over a set time period. What motivates your team might be a cash reward or simply getting priority in selecting shifts for the next month or quarter. Assess your biggest pain points and biggest team motivators to make the best matches between goals and rewards. A restaurant’s rewards program is a critical tool for attracting and retaining loyal guests – even more so since the pandemic has changed how the public buys food from restaurants. Now, the uncertainty in the economy has encouraged restaurant brands to not only get more creative about the rewards they offer, but also to overhaul their programs altogether. In some cases, the changes may be designed to appeal to guests in new ways, while in others they may simply be an unavoidable reflection of the challenges restaurants are experiencing. Starbucks, for one, will soon be changing its loyalty program for the first time in two years. The brand is reducing the number of thresholds at which guests can redeem rewards, while lowering the reward cost of several menu items. The consumer response to the change has been largely negative, which may serve as a warning sign for other brands. If you’re contemplating scaling back your rewards program out of necessity, consider how you might still send the message that you’re providing value. That may have to happen in ways that don’t stretch your budget – perhaps some exclusive menu items for rewards program members, or an experiential benefit for your best guests. As inflation continues to weigh on the economy and consumers’ level of comfort in making discretionary purchases, there is that much more pressure on restaurant operators to make the experience of restaurant meals worth the expense. But doing so doesn’t have to be about expending significant additional effort. It can be about using your technology to drive an easier, more engaging, more personalized experience with your brand – one that will tip the scales in your favor when a guest is wavering about whether and where to order a meal. Your loyalty program is a key tool in this effort, but operators shouldn’t simply lean on a cookie-cutter program – particularly at a time when it’s increasingly common for tech stacks to integrate plug-and-play options to help operators gain a competitive advantage through building loyalty. Looking at the information you have collected about your customer base, what offers drive them to purchase repeatedly from you? As a recent report from Pymnts.com indicated, brands are currently looking to differentiate themselves with such features as in-app concerts, gamified rewards, and meal subscription services that allow users to earn back money with each purchase. Others are partnering with complementary brands to build engagement and ramp up the potential rewards on offer. To maximize your opportunities for continuously capturing the interest of loyal guests, ensure that at every step of a transaction, you’re weaving in your business brand language, making sure users’ experience is consistent regardless of how they are ordering from you, and that you’re collecting data that helps you monitor guest responses and making adjustments based on what you’re learning. Restaurant digital orders skyrocketed 124 percent in March over the same period in 2020, according to NPD Group. That spike resulted in an influx of new restaurant loyalty programs in the market over the past year. Now a number of brands are revamping their existing programs in order to fine-tune their approach to their loyal guests – and enhance their actionable data as a result. As CNBC reports, some of those changes include improving the number or the quality of rewards for guests, expanding the number of payment options (including cash), and incorporating technology that recognizes a guest as soon as they enter the drive-thru or front door, enabling staff to greet the person by name and call up their preferences before they say a word. Others are providing loyalty program members with information on how many rewards they have earned in the past year. To be sure, as more of these programs enter the market, it will become harder for them to stand out – but it also means consumers will come to expect some rewards customized to their preferences in exchange for their regular business at restaurants. |
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