Points for Bites – How QSR Loyalty Programs Keep Customers Coming Back for Seconds

Loyalty programs have taken the QSR world by storm. Rewards aren’t exactly new, but their popularity has skyrocketed, thanks to mobile-first technology that puts loyalty right in customers' pockets. With over 210,000 fast-food spots in the U.S. alone (IBISWorld), keeping diners coming back has become a competitive sport. By offering more than a quick meal, QSR brands are creating loyal followings, ready to come back for seconds.

These programs let restaurants connect with customers on a personal level, offering rewards that feel truly tailored – whether through points, perks, or special deals. In this article, we’ll look at how the fast-food scene has changed, tackle the biggest challenges in customer retention, and explore what makes today’s loyalty programs from top brands so effective at keeping diners happy and coming back for more.

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How has the QSR industry changed over the years?

The QSR industry has come a long way, and it’s safe to say it’s more competitive than ever. The COVID-19 pandemic accelerated this shift, pushing brands to quickly adapt with features like contactless payments, online ordering, and expanded delivery options. In 2023, U.S. QSR sales hit $490 billion, showing just how much customers value the convenience and speed of quick service (Statista).

Even as new concepts flood the market, the big players are holding strong. McDonald's led with over $53 billion in U.S. sales in 2023, followed by Starbucks. But these days, just being a household name isn’t enough. With 57% of consumers saying they’re more likely to spend if a restaurant offers a loyalty program (PYMNTS), it’s clear loyalty programs are more than perks – they’re key to building lasting relationships, keeping customers coming back, and giving a little extra love to the brand's biggest fans.

The mobile shift has been huge, too. With 60% of Americans now ordering food online every week, mobile apps have become the go-to platform for loyalty programs, making it easy to access rewards on the go. Since 2014, digital ordering and delivery in restaurants have grown 300% faster than dine-in traffic (Worldmetrics). And the numbers back it up: 54% of loyalty program users prefer checking in through their phones, while 53% want rewards through the app, and 50% are happy to get them via text (PYMNTS).

Why QSR loyalty programs are essential for beating the competition?

Loyalty programs have quickly gone from nice-to-have perks to essential tools that keep customers engaged and coming back. And they’re in demand – 86% of consumers say they’re interested in joining a restaurant loyalty program if it offers discounts or coupons (Restaurant Dive). With 40% of Gen Z and 41% of millennials already signed up for loyalty programs (TouchBistro), it’s clear that customers want more than just a meal – they want rewards that make them feel recognized.

Loyalty programs are also ushering in a new wave of marketing with  zero-party data. This is data customers share directly, like their preferences or how they want to interact with a brand. It’s a goldmine for QSRs, allowing them to personalize offers in a way that feels like a one-on-one connection.

Why are the challenges for fast food loyalty then?

• Keeping loyalty data in sync across every platform: Today’s customers move between mobile apps, kiosks, websites, and delivery platforms. With all this switching, keeping loyalty data – like points and rewards – perfectly in sync can be a real challenge. Customers expect accurate updates, no matter where they place an order.
• Managing real-time rewards without delays: With the rapid pace of QSR orders, especially during peak times, data processing is essential. If loyalty points or rewards take too long to appear, it can quickly frustrate customers. A low-latency system is key to keeping everything running smoothly.
• Balancing data privacy with personalized rewards: While customers enjoy personalized offers, they also expect their data to be secure. Loyalty programs that use zero-party data (preferences shared directly by customers) need to protect this information carefully. The balance between privacy and personalization is crucial for building trust.
• Keeping rewards fresh and relevant across locations: What works in one area may not work in another. Locations might offer different menu items or region-specific rewards, making it tricky to maintain a consistent rewards catalog across locations. For QSRs, ensuring rewards make sense locally while remaining cohesive program-wide is challenging.
• Making personalization work at scale: Customers expect loyalty programs to feel tailored, but scaling this across potentially millions of members is no easy feat. AI can help create relevant recommendations, but keeping these personalized offers fresh and accurate for each individual requires significant data management.‍
• Avoiding loyalty burnout: With countless loyalty programs vying for attention, customers can quickly feel overwhelmed. Too many notifications or challenges can lead to disengagement. Balancing engagement frequency to keep the loyalty experience rewarding without feeling like a burden is essential.

5 examples of top QSR loyalty programs

1. MyMcDonald’s Rewards

The MyMcDonald's Rewards program, launched in 2021, is an app-based rewards scheme that follows an earn-and-burn model with gamification elements like tiers that unlock a wider range of menu items as rewards. The McDonald’s app itself has played a big role in the program’s success, ranking as the top-installed QSR app in 2021 with 24 million downloads. 

“Loyalty is the single biggest driver of digital adoption and MyMcDonald’s Rewards has exceeded expectations in terms of enrolment and participation. After just six months in the US there are over 30 million loyalty members enrolled and 21 million active members earning rewards.” – McDonald’s CEO, Chris Kempczinski

How does the program work?

• 1 point per dollar spent: Customers earn 100 points for every $1 they spend.
• Multi-channel access: Points can be earned through the app, at the drive-thru, and even in-store by scanning a unique code. 
• Onboarding bonus: New members receive 1,500 points on their first order, giving them an immediate boost towards their first reward.

The rewards are structured into tiers, making it easy for customers to choose rewards based on their accumulated points:

• 1,500 Points: Options include small fries, a vanilla cone, a cheeseburger, or a hash brown.
• 3,000 Points: Redemptions include options like medium fries, a McChicken, or a large iced coffee.
• 4,500 Points: Rewards like a Filet-O-Fish, large fries, or a Sausage McMuffin with Egg.
• 6,000 Points: The highest tier offers items like a Big Mac, Quarter Pounder with Cheese, or a Happy Meal.

McDonald’s also frequently runs special promotions through MyMcDonald's Rewards to keep customers engaged:

• Exclusive app deals: These include limited-time offers, like discounted McFlurries, BOGO deals, or $1 breakfast sandwiches, all accessible only through the app.
• Bonus points days: Occasionally, McDonald's offers double or even triple points on certain days or menu items, encouraging higher spending and repeat visits.
• Birthday treats: Members receive free treats on their birthday, adding a personal touch to the program and creating a positive, memorable experience.

2. Starbucks Rewards

For a coffee fix, millions of fans turn to Starbucks, the coffeehouse giant that’s as recognizable for its iconic green logo as it is for its Frappuccinos. Founded in Seattle in 1971, Starbucks has grown into an international powerhouse with over 15,000 locations in the U.S. alone, known for creating the “third place” between home and work. But Starbucks doesn’t just rely on its premium coffee; its Starbucks Rewards program has become a major part of the brand’s success.

How does the program work?

The Starbucks Rewards program operates on a points-based system where members earn “Stars” for every dollar spent, with different reward levels offering a variety of treats and upgrades. Members earn 2 Stars per dollar when paying directly through the Starbucks app or with a registered Starbucks card, and 1 Star per dollar when scanning the app before paying with cash or another card. 

The rewards themselves are structured into tiers, allowing members to save their Stars for small rewards or splurge on bigger treats:

• 25 Stars: Customize your drink with free add-ons like an extra shot of espresso or an alternative milk.
• 50 Stars: Redeem for a bakery item, hot brewed coffee, or tea.
• 150 Stars: Enjoy a handcrafted drink or hot breakfast item.
• 200 Stars: Claim a lunch item or a packaged snack.
• 400 Stars: Take home a packaged coffee or select merchandise.

The Starbucks app also offers exclusive deals and personalized recommendations tailored to each user’s past orders. Regularly ranking as one of the top food and beverage apps, it attracts millions of active users who log in to manage their rewards and enjoy app-only perks.

The program also includes gamified elements, such as Bonus Star challenges that reward customers with extra Stars for completing certain tasks, like visiting multiple times in a week or seasonal promotions, like the holiday-themed Star Days, which add an extra layer of excitement. Starbucks has also expanded the program’s reach by partnering with other major brands, allowing members to earn extra Stars and unlock perks beyond Starbucks.

3. Chipotle Rewards

Chipotle Mexican Grill, a favorite in fast-casual dining, kicked off its Chipotle Rewards program in 2019, and it quickly took off – attracting over 28 million members in just three years. Chipotle designed this program as a way to thank customers for their loyalty, all while staying true to its core promise of “real ingredients prepared fresh daily.” 

"Chipotle Rewards is another access point for guests to engage with our promise of real ingredients prepared fresh daily, and a way for us to say thank you for joining our mission of Cultivating a Better World.” – Anat Davidzon, Managing Director at Chipotle Canada

How does the program work?

Chipotle Rewards follows a straightforward earn-and-burn model with some creative gamification elements but without a tiered system. Members earn 10 points for every dollar spent across ordering channels – whether in-store, through the Chipotle app, or online – making it easy for customers to rack up points however they choose to order.

Points can be redeemed through Chipotle’s Rewards Exchange feature, which allows members to trade in points for free menu items, exclusive sustainable Chipotle swag, or even charitable donations. This flexibility sets Chipotle apart, giving members a range of options to redeem their rewards in a way that aligns with their values or preferences.

Additionally, Chipotle adds an extra layer of engagement with exclusive perks and gamified challenges:

• Bonus points days: Chipotle offers special days when members can earn extra points for purchases, encouraging more frequent visits.
• Birthday surprises: Members receive special rewards on their birthdays, adding a personal touch.
• Seasonal events: Each Halloween, Chipotle runs a special promotion where customers dressed in costume can enjoy a $6 entrée, turning a holiday into an opportunity for customer interaction.
• Extras and badges: Gamification comes into play with the “Extras” feature, where members can complete bonus challenges to earn badges and additional points. Chipotle even releases web-based games on occasion, allowing members to participate in fun, interactive experiences to collect points.

4. Taco Bell

When a craving for Taco Bell hits, fans know they’re in for more than just bold flavors – they’re stepping into a loyalty program built for today’s digital-savvy diners. Taco Bell Rewards brings personalized perks and exclusive offers, making every visit feel like a special experience.

How does the program work?

The Taco Bell Rewards program is accessible through the Taco Bell mobile app. Upon downloading the app and creating an account, users are automatically enrolled in the program. New members receive a complimentary Crunchy Taco as a welcome gift, encouraging participation. 

Members earn 10 points for every $1 spent on qualifying purchases made through the app, website, or by scanning receipts from in-store purchases. Points accumulate with each transaction, allowing members to progress through different reward tiers. 

The program features a tiered structure:

• Hot Tier: Upon reaching 250 points, members can redeem rewards such as a Cheesy Fiesta Potatoes, Chips & Nacho Cheese Sauce, or a Medium Fountain Drink.
• Fire! Tier: Achieved at 2,000 points, this tier offers enhanced rewards like a Nacho Cheese Doritos Locos Taco or a Seasoned Beef Chalupa Supreme.

Beyond point-based rewards, Taco Bell Rewards members enjoy exclusive benefits:

• Early access: Members receive early access to new menu items and limited-time offers, keeping them engaged with the brand's latest innovations.
• Special promotions: The program includes "Rewards Drops," offering special deals and unique experiences exclusively through the app.
• Birthday rewards: Members are treated to special offers on their birthdays, adding a personalized touch to the customer experience.

5. Chick-fil-A One Loyalty Program

Chick-fil-A has become a beloved American fast-food staple, famous for its crave-worthy chicken sandwiches and unparalleled customer service. With over 2,800 locations across the United States, this brand has built a loyal following by prioritizing quality and putting customers first.

How does the program work?

Chick-fil-A's loyalty program, Chick-fil-A One, is designed to reward customers for their patronage while offering personalized experiences. Members earn 10 points for every dollar spent on qualifying purchases, which can be redeemed for various menu items.

The program features four membership tiers:

1. Member: Entry-level tier where members earn 10 points per dollar spent.
2. Silver Member: Achieved at 1,000 points, earning 11 points per dollar.
3. Red Member: Reached at 4,000 points, earning 12 points per dollar.
4. Signature Member: Starting at 10,000 points, earning 13 points per dollar.

As members progress through these tiers, they unlock additional benefits, such as the ability to gift rewards to friends and family, receive birthday rewards, and gain access to exclusive experiences. For instance, Signature Members are offered opportunities like a free Chick-fil-A Backstage Tour at the company's HQ.

The Chick-fil-A mobile app makes the loyalty program easy to access, letting customers order, track points, and redeem rewards in one place. It also includes personalized features, such as saving favorite orders and receiving customized promotions, all designed to elevate CX and keep guests coming back.

Types of loyalty programs in the QSR industry

Designing a loyalty program that resonates with your fast-paced QSR audience requires a bit of planning. Start by asking yourself a few key questions:

• What’s the main goal? Are you aiming to drive repeat visits, bring in new customers, or create a personal connection with loyal patrons?
• How do your customers prefer to engage? Are they more likely to use an app, scan a QR code at the counter, or track rewards digitally?
• What level of complexity can you manage? Different loyalty models come with varying levels of upkeep, so it’s essential to choose one that aligns with your team’s resources.

1. Point-based programs (earn-and-burn model)

A favorite among QSRs, this model lets customers earn points for every dollar they spend, redeemable for menu items or discounts. It’s an easy-to-understand approach that works well for fast food brands focused on quick, tangible rewards. However, if your program is too price-driven, customers may jump ship for a slightly better deal elsewhere. To avoid this, add layers by offering bonus points for high-value items or specific times of day, like double points during off-peak hours.

2. Digital punch cards

Even though punch cards fell out of fashion a while back, the concept of rewarding customers with free menu items for making consecutive orders is still live and kicking. It's a simple concept – customers are rewarded for purchasing an item a certain number of times. 

For example, if they buy nine cups of coffee, they get the 10th free. This encourages repeat business and loyalty among customers. And it's a great way to show appreciation for their business. Item-based reward systems are also easy to set up and manage. So if you're looking for a way to show your customers that you value their business, an item-based rewards system is a great option to start.

3. Tiered loyalty rewards

A tiered loyalty system is a great way to encourage customers to spend more at your restaurant. The way they work is quite simple – the more a diner spends with you, the higher level of membership they earn. Tiered loyalty programs work for one reason – exclusivity. Customers love feeling like they are part of a deluxe group, and by offering tiered benefits, you can tap into that desire. 

Tiered benefits tend to work better in physical venues that focus on delivering excellent service and VIP-like experiences. By implementing a tiered loyalty system, you can identify the best customers and offer them a unique dining experience. If you are big on pampering top diners, you can provide them with free items and other perks each time they visit, without any need for collecting and redeeming points.

4. Gamified loyalty programs

Gamifying your loyalty program adds an interactive twist that resonates with today’s mobile-savvy customers. Challenges, double points days, and special rewards for birthdays or holidays keep things fresh and engaging. 

In addition to the standard rewards, Chick-fil-A occasionally introduces special promotions and games to engage customers further. For example, the "Code Moo" game allowed members to earn weekly food rewards and a chance to win free food for a year by participating in an online game.

Learn more: 10 promotion gamification examples you need to try

5. Location-based and personalized rewards

If you operate multiple locations, consider adding location-specific promotions. Regional offers can create a personal feel and allow you to tailor rewards to popular items in specific areas. Personalization can also be extended to ordering habits; for example, offering rewards on favorites like fries or coffee to regulars at specific times or locations.

Learn more: How to Improve Sales Promotions with Geofencing?

Finding the most effective program structure, reward actions and rewards is always going to take time. It’s better to start with the basics and iterate from there.

Customers are getting bombarded daily with various marketing communications. Forcing them to devote a big chunk of their personal time to grasp the mechanisms of your loyalty program is a grave mistake. Also, your communication should focus on “redeem points” rather than “earn points”. Only when customers redeem points for rewards will they return to your restaurant and you will see higher participation rates.

Learn more: Must-Have Terms and Conditions for Loyalty Programs in 2024

What successful fast food loyalty programs have in common?

1. Go digital and offer a loyalty mobile app

In today’s fast-paced digital world, traditional punch cards just don’t cut it anymore. To keep up with younger, tech-savvy consumers, successful loyalty programs are fully integrated across digital channels. With half of diners preferring to engage via email and 20% of Gen Z opting for social media to connect with restaurants (TouchBistro), a loyalty program that works both online and in-store is a must-have.

Going digital makes rewards easy to access, so customers can earn and redeem perks on the go. Mobile loyalty programs also help brands get to know their customers better, making it easy to track preferences and offer personalized recommendations. This way, businesses can surprise customers with just the right deal, right when they want it.

Learn more: The Power of Mobile Loyalty Programs

2. Leverage zero-party data for personalized experiences

Modern loyalty programs are all about creating that personal connection, using zero-party data – details that customers willingly share. Unlike first-party data, which hints at preferences through behavior, zero-party data gives direct insights into what customers truly enjoy, like favorite menu items, how they prefer to be recognized, and even their go-to locations. By tapping into location-specific data, QSRs can go a step further, tailoring offers that match local tastes or seasonal trends. Imagine a promotion featuring popular regional items or exclusive discounts at specific store locations – those touches make loyalty programs feel genuinely tailored.

Learn more: Unlocking Zero-and First-party Insights Through Loyalty Programs

3. Provide immediate value with attainable rewards

For a loyalty program to really work, customers need to feel the value immediately. The best QSR programs often feature tiered rewards with easy-to-reach perks that keep the excitement going. Offering simple, attainable rewards – like free drinks, discounts, or exclusive menu items – gives customers a reason to stay engaged without a long wait. These small, instant wins encourage regular visits and build a stronger bond with the brand.

4. Offer exclusive perks to enhance engagement

Today’s customers don’t just want discounts; they want to feel valued. Loyalty programs that offer exclusive experiences or priority services – such as access to new menu items, branded swag, or unique dining experiences – can make customers feel like VIPs. This sense of exclusivity can be a powerful driver of loyalty, encouraging customers to keep returning to unlock these special benefits.

Learn more: Loyalty reward ideas for B2B and B2C

5. Create an omnichannel experience

Great QSR loyalty programs make it easy for customers to earn and redeem rewards wherever they are – whether they're ordering in-store, online, or through an app. Since so many diners now switch between digital and in-person experiences, loyalty programs need to keep up across all channels. By connecting loyalty benefits at every touchpoint, brands can create a smoother, more consistent experience that fits right into today’s dining habits.

Learn more: How to Create an Effective Omnichannel Loyalty Program in 2024?

6. Make program promotion your priority

You can't create a loyalty program and expect your customers to sign up – you need to promote it through all your channels, especially social media. As found by one study, 42% of diners have interacted with restaurants on at least one social media platform. Of that group, 66% are more likely to order food from the restaurant they follow.

Social media is all about FOMO (fear of missing out). If you can tap into your customers' FOMO and show them what they're missing out on by not being a member of your loyalty program, you're more likely to get them to sign up. Another idea is to combine a referral program with your loyalty scheme and reward brand advocates with loyalty points for spreading the word about your venue.

Learn more: How to incentivize customers to join your loyalty program?

Choose the right loyalty platform

For quick-service restaurants (QSRs) seeking to create impactful loyalty programs, Voucherify offers a streamlined, flexible solution. Its API-first platform enables easy customization, allowing QSRs to tailor loyalty programs that align with their brand and customer needs.

With features like points expiration, pay-with-points, and reward tiers, it's simple to set up engaging and personalized campaigns. Additionally, the Areas and Stores functionality lets QSRs customize promotions for specific locations, ensuring relevance to each store's customer base. Robust security measures and a Rules Engine protect against fraud and safeguard customer data, making Voucherify a trusted tool for QSRs looking to drive repeat visits and build lasting customer loyalty.

Learn more: Explore Voucherify's Open Source Loyalty Accelerator

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