A Burger King restaurant seen in Milton, Pennsylvania.
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Burger King takes its nationwide rewards program amid a broader push from Restaurant Brands International to boost its business in the United States.
The chain is on track to have two-thirds of its U.S. footprint offered by the restaurant loyalty program in late September. The program is already nationwide for orders placed through its mobile app and website.
The Royal Perks program offers customers 10 “crowns” for every $ 1 spent at the chain’s restaurants. Members can redeem their points on most of the menu and receive free daily benefits such as drinks or chips.
Burger King’s U.S. director of marketing, Ellie Doty, said the first wave of members has been predominantly customers who have already used their app and website. With the launch at the restaurant level, it hopes to attract frequent consumers who prefer to place an order through the access board or counter. Doty refused to provide the current total of Burger King members.
The pandemic has accelerated the boom in online restaurant orders, prompting McDonald’s, Wendy’s and now Burger King to launch rewards programs. In the year ended March 2021, digital orders increased by 124%, according to the market researcher of the NPD group. Name loyalty programs like Starbucks and Chipotle Mexican Grill help these companies grow their app user base, learn more about their customers, and encourage more frequent visits.
“I think, most of all, since we’ve all been through the pandemic, we know that a lot of digital technology-enabled behaviors increased very quickly, and we believe this is one that we believe will continue,” Doty said. “Customers really see the ease and benefits of being part of loyalty programs.”
The loyalty program also comes when Burger King tries to keep up with its competitors. In its last quarter, Burger King recorded a 13% growth in sales in the same US store. A year ago, its sales in the same US store fell 9.9%, as orders to stay home hit demand. Rivals like McDonald’s and Wendy’s have experienced even higher revenue growth in recent months, bouncing off the pandemic even stronger than Burger King. Restaurant Brands CEO Jose Cil told analysts at the July conference call that the chain needs to work on its focus and pace.
“We haven’t focused enough on the few priorities that will have the biggest impact and we haven’t moved fast enough on those priorities to accelerate business performance to the level we know we are capable of,” he said.
In August, Burger King appointed Tom Curtis as the new head of the U.S. and Canada. Curtis, a former Domino’s Pizza executive, had joined the burger chain several months earlier as chief operating officer.
RBI shares have risen 5% this year, giving it a market value of $ 29.9 billion. While Burger King’s sister chain, Popeyes, has maintained the strong sales it began to generate with the launch of its famous chicken sandwich, Restaurant Brand’s third chain, Tim Hortons, has had problems in its Canadian domestic market. .