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In the competitive fast-food industry, franchises are leveraging technology to maintain customer loyalty and offer significant savings. One of the most effective tools they use is the loyalty app. With customers becoming increasingly price-sensitive due to rising food costs, these apps allow franchises to reward loyal patrons with discounts, free items and exclusive deals.
However, not all fast-food apps are created equal. Finance Buzz, a personal finance website that provides readers with insights, tips and resources on managing money, researched which apps are the best. Here's a breakdown of the top-performing franchise loyalty apps and why they offer the best value for customers.
Pizza Hut
Pizza Hut's loyalty program is the top performer when it comes to savings. With an average return of 15%, Pizza Hut offers customers a compelling reason to use its app regularly. For every dollar spent, users earn two points, which customers can redeem for menu items such as breadsticks or pizza.
One of the reasons Pizza Hut's app is so successful is its frequent promotions and coupons that can be combined with rewards. Whether it's a family night or a quick solo meal, the consistent savings add up, particularly for loyal customers who order often. This means more frequent repeat business for franchisees, building brand loyalty over time.
Taco Bell
Taco Bell's app is another strong contender, offering users a 13% return on their spending. For every dollar spent, customers earn 10 points; they can redeem for free items at a 250-point threshold. Taco Bell rewards frequent users with elevated tiers. Once users hit 2,000 points in a calendar year, they enter the "Fire" tier, earning 11 points per dollar spent.
Taco Bell's app stands out because of the variety of redemption options and the frequent availability of exclusive offers. For franchisees, this means customers save money and have a reason to engage with the brand regularly. High engagement leads to better customer retention, a critical metric for any fast-food franchise.
Hardee's and Carl's Jr.
With a 13% return on spending, the Hardee's and Carl's Jr. apps are great examples of how franchise apps can drive customer loyalty. The rewards structure is straightforward: customers earn 10 points for every dollar spent and can redeem their points for menu items. Their app also features a tiered reward system, where items like burgers, chicken tenders and sides cost different point amounts (150, 300 or 500 points).
The app is particularly attractive because of its frequent coupons and special offers, although users cannot combine them with point redemptions in the same order. Despite this limitation, the app remains a favorite among regulars. The consistent savings and the appeal of exclusive deals make it a valuable tool for franchisees to retain customers.
KFC
KFC's app offers users a 12% return on their spending, with 10 points earned per dollar. Customers can redeem their points for popular items like chicken or sides, making it a solid option for loyal patrons. To get a signature entrée, users must spend around $75 on items, which might seem high but is reasonable considering the frequent availability of promotions and family-sized meal deals.
For KFC franchisees, this app is a win-win. It encourages customers to spend more to reach redemption thresholds while rewarding them with consistent savings. The app helps drive sales, especially during high-volume periods like lunch and dinner rushes, contributing to better profitability for franchise owners.
Related: Don't Have Time to Start a Business? This Doctor, Lawyer and Now Part-Time Franchisee Would Disagree.
McDonald's
McDonald's is one of the most well-known fast-food franchises, but its loyalty app offers slightly less value than the top competitors. Customers earn 100 points for every dollar spent, equating to an 11% return on their spending. However, McDonald's makes up for this with frequent, highly attractive promotions like free fries with a $1 purchase and its $5 Meal Deal.
Despite offering a slightly lower return rate, the McDonald's app still drives significant customer engagement, thanks to the sheer volume of locations and the appeal of its popular menu items. Franchisees benefit from the app's broad user base and constant customer interaction.
Related: How Entrepreneur Ranked This Year's Franchise 500, and the Big Trends We Saw
The franchising advantage
For franchise owners, loyalty apps are powerful tools to drive customer engagement and retention. Offering consistent savings through rewards programs boosts sales and increases brand loyalty. Franchisees benefit from more frequent visits and larger order sizes as customers aim to earn points and redeem rewards. Moreover, app-exclusive deals encourage customers to keep engaging with the brand, adding another layer of customer loyalty.
Franchises that effectively leverage loyalty apps can create a lasting connection with their customers. Whether Pizza Hut's high return rate or Taco Bell's elevated reward tiers, these apps help franchises stay competitive in an ever-evolving market.
Although the fast-food industry is known for its value deals and promotions, loyalty apps offer additional savings that benefit customers and franchise owners. By choosing to engage with these programs, customers can save significantly, and franchisees can enjoy stronger customer loyalty and more frequent transactions.
Related: See the 2024 Franchise 500 Ranking
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