The new Burger King logo
Source: BusinessWire
Burger King is testing a loyalty program in five US markets as part of a broader action to expand the digital customer experience.
The Brands International Restaurant Chain is the latest restaurant chain that pursues rewards programs as a way to boost sales. Loyalty programs from names like Starbucks and Chipotle Mexican Grill help those companies grow their loyal customer base and encourage more frequent visits. The introduction of the Burger King’s Royal Perks test follows the announcement from McDrald’s McDrald’s, which enters the next phase of its own loyalty program tests.
“It’s been something we’ve been working on for a while, which we’ve had in several different versions of beta testing,” said Ellie Doty, Burger King’s North American marketing director. “It’s the next natural step when you want to have digital leadership and find ways to create more personalized experiences for your guests.”
Restaurant Brands CEO Jose Cil told a Morgan Stanley investor conference in December that Royal Perks will help the Burger King move away from a promotion-based approach by offering low daily deals and prices to customers.
Burger King customers in Los Angeles, Miami, New York, New Jersey and Long Island will be able to earn reward points for every dollar they spend. Members can also earn points for orders from the Burger King website or app. The testing of the program is now primarily on the digital channels of the burger chain, according to Doty.
Among the benefits of the program is the ability to earn points for most menu items. In comparison, the McDonald’s test limits redemption options to 16 menu items.
The Burger King loyalty program will also offer free daily benefits, such as members ‘drinks or french fries, and will award double points during members’ birthdays.
The chain intends to bring the program to several markets throughout the year. However, Doty said that Burger King is not yet committed to a national launch in 2021 and that the current format is not set.
“We will take the time to correct things, so we go through a pretty rigorous amplification, so we learn as we go and do it well before it reaches the national level,” she said.
Shares of parent company Restaurant Brands have fallen 6 percent in the past 12 months, giving it a market value of $ 27.6 billion. The chain of the Burger King sisters, Tim Hortons, took longer to recover from the coronavirus pandemic, as more consumers make their own coffee at home. Restaurant Brands expects to share its results from the fourth quarter before the bell on Thursday.