Loyalty programs key for limited-service operators in Canada: report

Chicago – More than one-third of Canadian consumers surveyed by Technomic say a rewards program is an expectation at fast-food restaurants, and another 34 per cent say it’s not an expectation but could encourage them to visit more often.

Value and price remain critical aspects for limited-service restaurants, especially with Canadian operators in some provinces being forced to raise menu prices due to higher labour costs, according to a new survey from Technomic.

Technomic’s 2018 Canadian Future of LSR Consumer Trend Report suggests that restaurant operators can offer more modern rewards or loyalty programs to enhance value without cutting into profit margins.

“To amp up basic loyalty programs, operators can further engage customers by adding a gamified aspect or even incorporating surprise awards into their programs,” said Anne Mills, senior manager of consumer insights at Technomic, in a news release. “With a rewards program, brands can also harness big data to better understand consumer behaviour and offer more tailored experiences. This, in turn, will drive repeat traffic and sales.”

Key takeaways from the report include:

• 36 per cent of consumers say a rewards program is an expectation at fast food, and 34 per cent say it’s not an expectation but could encourage them to visit more often
• 41 per cent say a rewards program is an expectation at fast-casual restaurants, and 32 per cent say it’s not an expectation but could encourage them to visit more often
• 64 per cent of consumers say they visit fast-food restaurants because the price is reasonable, while 53 per cent say the same of fast-casual restaurants

Compiling findings from more than 1,000 consumer responses, as well as menu and industry information from Technomic’s database, the 2018 Canadian Future of LSR Consumer Trend Report serves as a guide to help foodservice operators and suppliers better understand how consumer behaviour, attitudes and preferences toward fast-food and fast-casual restaurants are evolving and to identify areas of opportunity, the company said.