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C ustomer loyalty programs have evolved arguably faster than any other facet of restaurant market- ing and operations. Gone are the days of paper punch cards or coupons and overly broad advertising programs. Today, restaurant marketing can get much more personalized, thanks to mobile apps capturing more robust customer data sets and AI-powered func- tionality that enables restaurateurs to learn more than ever about their best customers and segment those audiences according to their preferences and behav- ior. But with that evolution comes added complexity. Operators now face logistical challenges around costs, capabilities and how to manage massive amounts of customer data. Just over half of operators surveyed by Nation’s Restaurant News and Restaurant Business say they currently have a loyalty program with the majority of those programs fully digital or hybrid with both digital and non-digital elements. The evolution over the years from the paper punch cards to increasingly sophisticated digital loyalty programs has unlocked the potential of customer data for targeted marketing and hyperpersonal- ization. AI is only turbocharging those capabilities. In addition to personalization, restaurant operators are looking to other emerging loyalty capabilities, including app-less loyalty integrated into consumers’ digital wal- lets, geo-fencing and location-based offers, subscription models, gamification, and more.
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53 %
46 %
38 %
INNOVATIVE MEDIA ENGAGING CONTENT MEDIA
of operators offer some kind of loyalty program, with another 17% saying they’d like to add one in the near future
said they would invest in digital marketing in the coming year, the top answer among respondents in our annual tech outlook survey
of operators said they’re interested in exploring AI-driven personalization in their loyalty programs
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“We are not yet using hyper personalized offers or messaging as we do not have a customer data platform that collates all of our data resources into one place. That is next on our task list to take our loyalty database to the next level.” — Bindi Menon, CMO, Captain D’s
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Source: Nation’s Restaurant News and Restaurant Business research
32 | FSTEC 2025
FSTEC 2025 | 33
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