Paytronix knows all about building exceptional guest experiences, thanks to continuous input and guidance from the best. At this year’s PXUX, Smashburger founder and food innovator Tom Ryan will translate his expertise into ideas that will work for you.
In fact, this year Smashburger earned the 2021 Paytronix Loyaltees award for Marketing Innovation Icon. Smashburger’s use of AI to IA sm in the relaunch of its data-driven SmashClub Rewards program drove 6.5% of overall sales growth in 2020. The company spurred sales by tapping into guests’ individual preferences and developing personalized, one-to-one marketing campaigns. […]
One of the great things about being in this industry is helping iconic brands grow and adjust to the market. Checkers & Rally’s offers our latest opportunity to be part of such a change. The brand has always been known for its great burgers and its drive-thru locations, but just this week announced that it closed $20 million in funding to fuel new growth. Now its new Paytronix-driven loyalty program and mobile app will be a key part of that strategy, as the company predicts the rewards program and app will help increase guest visits by as much as 20% and increase guest spend by as much as 15%.
Like most of America, the restaurant and c-store industries will be happy to bid 2020 goodbye and hope for a fresh start in 2021. As we at Paytronix look toward the future, we see a brightening on the horizon, one that may even end in a large party.
But getting there is going to mean change, not only in how the industry thinks about guest engagement, but also in how restaurants themselves are constructed. We predict that as restaurant and c-store brands move beyond the pandemic, they will need to make significant investments in the technology infrastructure that enables them to focus on truly owning the guest. […]
As the COVID-19 crisis gripped the restaurant industry, a call went out for people to purchase gift cards to help keep restaurants afloat. The hope was that an increase in gift card sales would sustain restaurants while they converted to a future dominated by online ordering, takeout, and delivery.
An analysis of restaurant gift card sales in early 2020 reveals that the marketing effort worked but ultimately achieved mixed results. Overall, sales dropped during the pandemic, but that drop was much less severe than we saw in overall restaurant sales during that same period.
Around the same time we saw an increase in overall load amount on the cards purchased, with most of that increase happening in Casual and Fast Casual brands. This suggests that yes, the effort did manage to keep things from getting worse and provided restaurants with a much-needed kick. However, the actual impact on business is much more difficult to discern.
Gift card loads tend to hover around the $30 range for the industry as a whole, but in March we saw that number spike as high as $60, then settle in at about $15 higher than normal, eventually falling well below the normal benchmark.
Markets with the biggest impact
When we look closer, things vary through the industry. Fine Dining, for example, saw little movement in the average price of a gift card when compared year over year, while both Fast Casual and Casual Dining brands increases of between $10 and $30 on their average gift card sales. All that said, much of that lift was gone as we entered Q2.
It’s also worth noting that included in the “gift cards” category are recurring loads for things like app-based purchases. Your coffee app may ask for your credit card, but you are effectively buying a gift card when you reload, then spending that money over time.
Moving forward, however, we see that gift card sales remain well below last year’s levels as we head into Q2, with traditional bumps in sales that happen around Mother’s Day and Graduation season being much less pronounced than in previous years. It is possible that people have switched to more generic gift card offerings, like those from third party delivery services, but we have little evidence to draw a full conclusion.
This is worth watching. However, given that the vast majority of gift card sales happen during the holiday season, we won’t have a good idea of whether there are major changes to the marketplace until the end of 2020.