Customer loyalty and QSRs (Quick Service Restaurants ) go together like…well…pizza and pepperoni. So it’s no surprise that Papa John’s has made it into the upper ranks of the largest loyalty programs. Typically integrated into a restaurant’s mobile order and pay apps, consumers that collect loyalty points spend more and visit more frequently than non-loyalty customers. It’s a tried and true formula to enhance customer engagement and gain a better understanding of their purchase habits and preferences.
Other big programs that have over 20 million include Domino’s, Dunkin’, and Starbucks. Recently, McDonald’s went national with its loyalty program and they should expect to reach these lofty levels before too long.
The following excerpt from a Restaurant Business article reports more on the topic:
Papa John’s on Tuesday said that its Papa Rewards loyalty program hit 20 million members, a key milestone that was driven at least in part by consumers becoming more frequent buyers of delivery pizza during the pandemic.
It’s a milestone reached by a relatively small number of chains—Starbucks, Panera Bread and Domino’s among them—but one that could become more common in the coming years as a growing number of big chains start getting on board the loyalty bandwagon. McDonald’s this week, for instance, is expected to debut its loyalty program, one that could instantly have millions of members given the popularity of its app.
Papa John’s program, called Papa Rewards, made its debut in 2010. Two years ago it had 12 million members. That number has soared since then as the chain’s sales recovered and consumers ordered a lot more pizza. The chain’s domestic system sales climbed 16%.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group