For quick-service restaurants, loyalty programs are no longer a nice-to-have; they are essential tools to keep customers coming back. As consumer expectations evolve, it’s crucial for QSRs to rethink their loyalty strategies. Recent studies by Simon Kucher provide valuable insights into making loyalty programs not only effective but also meaningful for customers.
Loyalty Programs: The New Table Stakes
Simon-Kucher’s first study with input from 100-plus restaurant brands shows that 82 percent of brands already have some type of loyalty or rewards program in place. With so many options, customers expect these programs rather than view them as a special perk. The challenge for restaurants now is finding ways to set their programs apart from the competition.
Our second study to 500-plus consumers that regularly dine at QSRs showed that 80 percent say they buy more frequently when actively engaging with a program. This underscores the need to create programs that offer real, tangible value, giving customers a reason to keep coming back. But here’s the catch—while many brands use loyalty programs to drive overall growth, too few tap into their full potential by tailoring them to stand out or solve specific business challenges. This is a missed opportunity in a competitive market where differentiation matters more than ever.
Retention at the Core
Many restaurant brands design loyalty programs with one primary goal: Retention. And while it makes sense—keeping customers coming back is critical—retention can sometimes be too much of a “catch all” objective and leave loyalty programs undifferentiated. According to our study, 60 percent of QSR brands prioritize retention in their strategies. However, the most effective loyalty programs go beyond retention—they solve specific objectives that align with the brand’s broader goals and long-term strategy.
Our approach starts with different questions. Instead of asking, What rewards should we offer? we begin by exploring, What objectives are we solving for, and how will we measure success? A strong loyalty program must be tailored to meet key objectives—whether that’s boosting visit frequency, promoting new menu items, or building emotional connections with customers. Once the objective is clear, we can align loyalty mechanisms—such as point structures, reward tiers, or personalized offers—with the specific outcomes we’re trying to drive.
The Allure of Savings
What really draws customers in? Seventy-one percent of consumers say financial perks are the main reason they join loyalty programs. But these perks don’t need to be a race to the deepest discount. While straightforward discounts are effective, they’re not the only way to create value for the consumer. In fact, there are more creative and meaningful ways to signal savings without simply slashing prices.
Offering exclusive perks like early access to new menu items or limited-time offers can build excitement and foster a deeper connection with customers. Taco Bell has been a great example of this in the last few years, bringing back its infamous Mexican Pizza menu item and providing loyalty members exclusive access for the first two days of launch. Examples like these not only drive traffic but also create a sense of belonging and appreciation.
These thoughtful perks are low-cost for restaurants but meaningful to customers, offering the perfect combination—clear savings draw them in, and personalized, exclusive experiences keep them coming back.
Three Smart Ways to Supercharge Your Loyalty Program
Highlight Financial Benefits: Customers love a good deal. By showcasing savings and discounts that are easy to achieve, QSRs can drive frequency. The key is to design rewards that feel attainable and motivate customers to engage regularly.
Time Rewards Effectively: Consumers expect quick payoffs, making it crucial to deliver the first reward early—while excitement is still high. Rewarding them after the first or second purchase, rather than after a long wait, taps into instant gratification, boosts satisfaction, and builds momentum, encouraging faster repeat visits and deeper engagement.
Increase Value Over Time: A loyalty program should grow with its members, offering more enticing rewards as they continue to engage. This approach ensures the program resonates most with a brand’s high-frequency customers—the ones who matter most—keeping them interested, invested, and coming back.
Conclusion: The Future of Loyalty
The real strength of a loyalty program lies in building meaningful connections. It’s not just about getting customers through the door—it’s about offering rewards that feel achievable, keeping them engaged, and personalizing every interaction to make them feel valued. Looking ahead, we believe the future of loyalty will be more and more personalized. With the wealth of data restaurants now have, they can craft offers that truly resonate with each individual customer, rather than relying on a “one-size-fits-all” approach—which too often results in “one size fits none.” Programs that evolve with their customers and deliver relevant, timely rewards will be the ones that stand out in an increasingly competitive landscape.
Evan Ferber is a Senior Director at Simon Kucher, a leading strategy and marketing consultancy. He is part of the Consumer Goods & Retail team, specializing in revenue growth for QSR and consumer-focused businesses. His expertise includes go-to-market and pricing strategies, with a focus on price architecture, bundling, and customer insights. Evan holds a BS from Tufts University and an MBA from MIT Sloan.
