Burger King is expanding its rewards program nationwide as part of Restaurant Brands International’s larger push to strengthen its U.S. business.
The chain is on track to offer a restaurant loyalty program in two-thirds of its footprint in the United States by the end of September. The program is already nationwide for orders placed through its mobile app and website.
The Royal Perks program gives customers 10 “crowns” for every dollar spent at the chain’s restaurants. Members can redeem their points on most menus and will enjoy free daily perks, such as increasing the size of a drink or fries.
Burger King’s North American Marketing Director Eli Dotti said the first wave of members were mostly customers who were already using its app and website. With the restaurant-level launch, it hopes to attract consumers who prefer to order through the drive-thru lane or the counter. Dotti declined to provide the total number of current Burger King members.
The pandemic has sparked a boom in online restaurant orders, prompting McDonald’s, Wendy’s and now Burger King to roll out rewards programs. According to the NPD Group market research, there was a 124% growth in digital orders in the year ending March 2021. Loyalty programs with names like Starbucks and Chipotle Mexican Grill are helping these businesses to grow their app user base, learn more about their customers and encourage them to visit more often.
“I think, especially since we’ve all been through the pandemic, we know that a lot of digitally compatible behaviors have grown very rapidly, and we think this is the one we think will stay,” Dotti said. . “Customers really see the ease and benefits of being a part of loyalty programs. “
The loyalty program also comes as Burger King tries to keep up with its competition. In its final quarter, Burger King announced a 13% increase in same-store sales in the United States. A year ago, its U.S. same-store sales fell 9.9% as door-to-door orders hit demand. Rivals like McDonald’s and Wendy’s have seen even greater revenue growth in recent months, even stronger than Burger King’s because of the pandemic. Restaurant Brands CEO Jose Sil told analysts on a conference call in July that the chain needed to work on its purpose and momentum.
“We haven’t paid enough attention to some of the priorities that will have the greatest impact, and we haven’t moved fast enough on those priorities to bring business performance to the level we know we are capable of,” they declared.
In August, Burger King appointed Tom Curtis as head of the United States and Canada. Curtis, a longtime Domino’s Pizza executive, joined the burger chain several months ago as COO.
RBI shares have gained 5% this year, giving it a market value of $ 29.9 billion. While Burger King’s sister chain Popeyes saw strong sales with the launch of its famous chicken sandwich, the restaurant brand’s third chain, Tim Hortons, struggled in its home market, Canada.