PAR Punchh released its 2024 Loyalty Trends Report. Some key concepts from the report revealed that loyalty sales remain strong, the morning daypart is growing, omnichannel ordering guests visit more frequently and loyalty programs’ digital strategies are working well on Gen Z customers.
Par Punchh recorded a 10% rise in quick service growth year over year, noting that QSRs used loyalty programs to engage members through mobile ordering or redesigned their apps to enhance value proposition.
According to the report, breakfast is back on the rise and is a growing opportunity to draw in customers, with the morning daypart accounting for 8% of quick service dining sales. “As more people return to their offices and adapt to new routines, there has been a notable increase in morning sales. Loyalty programs have been pivotal in this trend, offering targeted messaging and incentives,” the company said.
“Additionally, casual dining brands have successfully sparked interest in breakfast through menu innovations, healthier items, personalized offers and optimized ordering channels, aligning with consumer shifts observed with remote work schedules.”
For more information on shifting daypart sales, check out “Daypart Disruption” in the June 2024 issue of NACS Magazine.
The report also noted the importance of omnichannel and in-store ordering to draw in consumers. “Guests using multiple ordering channels visit more frequently and purchase at higher volumes, emphasizing the importance of technology in enhancing customer experience. Additionally, the resurgence of in-store ordering, accounting for just under 40% of transactions last year, highlights the need for effective on-premise POS systems to cater to a significant customer group,” Par Punchh said.
When it comes to appealing to younger customers, digital and loyalty programs are the way to go to grab their attention. Gen Z accounted for 25% of total loyalty sign-ups in 2023, up from 11% in 2022.
Earlier this week, retailer Jacksons Food Stores announced it had revamped its customer experience platform. The PAR Retail-designed customer loyalty platform overhauls Jacksons Food Stores’ “Let’s Go” Rewards program. Jacksons said technological improvements give it the ability to offer more creative rewards options that better reflect customer preferences and broader campaigns.