Fast Food, Woke Rewards: Rethinking Loyalty in the Age of Gen Z
With the pandemic, restaurants online ordering surged a whopping 237% between March of 2020-2021. As vaccination rates continue to rise, online ordering slowly but surely continues to drop. What did restaurants decide to do? Amplify their loyalty programs. Do you remember participating in the McDonalds Monopoly promotion? If not, it's a marketing promotion run by McDonalds in collaboration with the popular board game Monopoly. During the game, you would purchase an item like a large fountain drink and peel off your reward which led to cash prizes, free food and other items. This was almost the same excitement as buying a lottery ticket.
“In a small interview with my group of friends 100% of them said they eat fast food at least once a week and at most 6 days out of the week – but admitted it’s just because it’s convenient and in fact they think fast food is bad.”
With the accessibility of food, groceries, and even auto parts on services like Doordash and UberEats – on-demand services thrive when it comes to Gen Z. Most of my friends use the McDonald's app, and apps for whatever restaurants they frequent to build up points and save money which ultimately benefits the customer with free food or items, and the business with returning/consistent customers. However in a small interview with my group of friends 100% of them said they eat fast food at least once a week and at most 6 days out of the week – but admitted it's just because it's convenient and in fact they think fast food is bad. This is an opinion I've seen on social media for years and could even be related to how fast services aren't good for humanity in some way, shape, or form. For example fast fashion and fast food cause different problems for us such as human rights and health problems.
“Resting on convenience is a transactional relationship that leaves fast food restaurants susceptible to being easily replaced.”
As more businesses turn to quick service options, resting on convenience is a transactional relationship that leaves fast food restaurants susceptible to being easily replaced. Fast food restaurants are missing a big opportunity to revolutionize their relationship and brand association with their young customers through innovative rewards programs. Gen Z has been named fast food's most loyal generation, with over half visiting a restaurant at least once a week – it’s time for that loyalty to be recognized as an integral piece of the long term relationship.
“38% of consumers say their most significant loyalty program pain point is that making a purchase is the only way to earn benefits for loyalty.”
We’re tired of loyalty being point driven and tied to additional spending; we’d like our value and values to be recognized. According to Kearney, 38% of consumers say their most significant loyalty program pain point is that making a purchase is the only way to earn benefits for loyalty. There is value in supporting a restaurant chain beyond just a dollar amount, connecting with and sharing social media posts online for instance. Brands could surprise us by providing rewards for digital interactions across our social media channels, where we’re already living, instead of only on clunky apps that take up storage on our phones. Or instead of dollar discounts for our next Big Mac or Taco Supreme, we get access to a specially discounted menu. As a student or someone under the age of 22, money is most likely pretty important for you, but so is eating, right?
“This way we feel like it’s a win-win, and we don’t have to choose between convenience, our wallets, and our values.”
The brand could then donate the difference in price to a charity related to our interests and to offset its impact, such as The HAPPY Org. This way we feel like it’s a win-win, and we don’t have to choose between convenience, our wallets, and our values. The social reward doesn't have to stop there, with apps like Chick-Fil-A's, you can send your earned points and rewards to friends which could really help on a rainy day. Overall, including our natural behavior and what’s important to us can help both customers and establishments benefit from these programs. If we haven't signed up for any restaurants we frequent, we’re just waiting for the better invitation.