By Krysta Escobar
Chipotle this year launched a seasonal campaign called “Summer of Extras.” The campaign is giving away over $1 million in free burritos, encouraging customers to rack up visits and compete to become the top Chipotle visitor in their state.
“We continue to see activations in this program build and excitement and positive reaction across social media from our fans,” West said. “We just continue to focus on delivering value to them in ways through programs where customers are given opportunities to ‘plus up’ their points or earn specific offers by exhibiting specific behaviors.”
Salad chain Sweetgreen also retooled its loyalty program this spring, moving away from its tiered subscription program that many consumers found confusing.
“In a challenging industry environment where consumers are making more intentional choices with every dollar, SG Rewards is designed to meet the moment by delivering a meaningful value,” Sweetgreen co-founder and CEO Jonathan Neman said on the company’s quarterly conference call in May.
Even Starbucks, an established leader in rewards programs, has made changes. In June, the coffee chain ended its 25-star reusable cup bonus and replaced it with double stars across the full purchase. While the change was controversial among loyalists, who claimed the earning potential was reduced, the coffee chain said participation has remained steady.
Of course, giving free rewards comes with tradeoffs. Promotions cut into profits in an industry that faces tight margins in the best of times. Restaurant chains hope those freebies drive longer-term loyalty and spending on full-price items.
Long-term wins
Brands navigating economic pressure are seeing that loyalty programs are helping to drive visits.
Potbelly revamped its loyalty system in early 2024, moving to a coin-based structure that allows customers to redeem rewards faster and across more items. Customers now have access to over 14 menu items through the rewards program. This flexibility has led to more frequent visits, Potbelly’s chief marketing officer, David Daniels, said.
“We saw a lift almost immediately in terms of engagement,” Daniels said. “The response has been incredibly positive.”
Chicago-style eatery Portillo’s joined the loyalty game in March with “Portillo’s Perks.” Instead of using a traditional app, the program utilizes a digital wallet system and focuses on frequency. It tracks how often a customer visits and awards badges as they go.
“It gives flexibility to change how the program is deployed,” Garrett Kern, Portillo’s vice president of strategy and culinary, said to CNBC. “It doesn’t require a redesign and relaunch to an application. It was a great way for us to get the program out there in a branded and easy-to-use way.”
The company is aiming for 1.5 million to 1.7 million sign-ups by mid-summer.
— CNBC’s Amelia Lucas and Jacob Pramuk contributed to this report.