Restaurants Leverage Loyalty Programs Amid Economic Uncertainty

Fast-casual restaurants are adapting to changing consumer behaviors, shifting their focus from simple perks to strategic tools for engagement. As diners pull back on spending due to economic uncertainty, brands like Chipotle, Starbucks, and Cava are relying on loyalty programs to bring customers back.

In the 12 months ending May, restaurant traffic only increased once, in November, according to Black Box Intelligence data. To combat this trend, fast-casual chains are using rewards programs that offer discounts or added perks for returning customers. These programs have become essential for building and maintaining relationships, especially during economic downturns.

According to Circana data, consumers who join loyalty programs visit restaurants more frequently, making 22% more visits per year than non-members. Starbucks has seen significant success with its rewards program, reporting 34.2 million active members in the second quarter. Chipotle’s program makes up approximately 30% of sales each day and helped the burrito chain avoid major price hikes.

To stay ahead, brands are getting creative with their loyalty programs. Cava revamped its program in October 2024 to offer more flexibility and surprise rewards. The company also celebrated National Pita Day by offering complimentary pita chips to its members. Chipotle’s “Summer of Extras” campaign is giving away over $1 million in free burritos, encouraging customers to rack up visits.

Even established leaders like Starbucks are making changes to their loyalty programs. The coffee chain ended its 25-star reusable cup bonus and replaced it with double stars across the full purchase. While this change was met with controversy among loyalists, participation has remained steady.

By offering free rewards, restaurant chains hope to drive longer-term loyalty and spending on full-price items. As brands navigate economic pressure, they are seeing that loyalty programs are helping to drive visits. With creative and flexible rewards, fast-casual restaurants are building habits that go beyond the occasional coupon, ensuring a loyal customer base for years to come.

Source: https://www.cnbc.com/2025/07/05/fast-casual-restaurants-lean-on-loyalty-programs-amid-consumer-pullback.html