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- 55% of restaurants say that loyalty check sizes have increased.
- 5-17% of total restaurant revenue is from the most loyal 2-3% of customers.
- Generational shift is happening.
Newton, MA – October 11, 2022
Paytronix Systems, Inc. published the Paytronix Annual Loyalty Report 2022. It found that professionally designed loyalty programs are helping combat inflation.
The report also finds that anywhere from 5 to 17% of overall business revenue is driven by the most loyal 2 to 3% of customers.
Download the Paytronix Annual Loyalty Report 2022
Understanding the Report
This second Paytronix Loyalty Report looks at restaurant and c-store trends. Here's what it found:
New Spending Record
In 2021, loyalty spending hit the highest level on record. The highest spend was from:
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Casual dining
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Fast-casual
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Ice cream/snack/coffee
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Mexican concepts
Top Loyalty Members
Top loyalty guests are the highest spenders. At c-stores, the top 8-10% of loyalty members visit an average of 32 times a month.
Generational Shift in Age and Spend
Millennials (36-55 age range) have an outsized percentage of spend, while the baby boomers (56+ segment) have an outsized percentage of visits. The largest untapped potential lies with Gen Z, (16-35 age range), as this group has the most guests who neither visit nor spend.
Both the growth in spend for Millennials and the shrinkage in spend for Baby Boomers indicate that Millennials are the future of loyalty programs.
Convenience Store Trends
The spend per check for convenience store loyalty members increased by about 25% last year, and much of it can be attributed to price increases in both fuel and in-store items.
While the spend per check increased approximately 25% from 2020 to 2021, the annual spend for convenience store loyalty members increased nearly 40%. Fuel purchasers were paying more per gallon and visiting more often.
Rise of Snacking
Across all concepts, 2021 saw the highest annual spend per guest of any year for which Paytronix has data. The difference was often minimal, but the ice cream/snack/coffee segment proved an exception, as guests eagerly increased their spend by 20% between 2019 and 2021.
“The Paytronix Annual Loyalty Report shows that the potential of loyalty to build relationships between customers and their favorite brands has never been greater. Between the ongoing generational shift and the critical importance of the top tier of 2-3% of guests, it has become increasingly clear that growing cadres of loyal customers are vital for the health of brands. And the loyalty members of convenience stores who visit daily show the potential of loyalty customers to visit more often.” — Lee Barnes, Chief Data Officer, Paytronix Systems, Inc.
Methodology
All data referenced in this report is sourced from the Paytronix database of in-store and online transactions that occurred between January 1, 2019 and December 31, 2021, unless otherwise noted.
Only businesses using loyalty programs between 2019 and 2021 were part of it.
About Paytronix Systems, Inc.
Based in Newton, MA, Paytronix handles CXM for restaurants and c-stores.
Paytronix helps 1,800 brands improve the guest experience. It uses AI to help you get more customers.
For more info, visit www.paytronix.com.
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