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Loyalty programs increasingly crucial for limited-service operators in Canada

Technomic’s 2018 Canadian Future of LSR Consumer Trend Report reveals ways fast-casual and fast-food restaurants can better understand and engage consumers

CHICAGO, June 25, 2018: Value and price remain critical aspects for limited-service restaurants, especially with Canadian operators in some provinces being forced to raise menu prices due to higher labour costs. Technomic’s 2018 Canadian Future of LSR Consumer Trend Report shows that to stay ahead of these expectations, operators can offer more modern rewards or loyalty programs to enhance value without cutting into profit margins.

“To amp up basic loyalty programs, operators can further engage customers by adding a gamified aspect or even incorporating surprise awards into their programs,” recommends Anne Mills, senior manager of consumer insights at Technomic. “With a rewards program, brands can also harness big data to better understand consumer behaviour and offer more tailored experiences. This, in turn, will drive repeat traffic and sales.”

Key takeaways from the report include:

  • 36% of consumers say a rewards program is an expectation at fast food, and 34% say it’s not an expectation but could encourage them to visit more often
  • 41% say a rewards program is an expectation at fast casuals, and 32% say it’s not an expectation but could encourage them to visit more often
  • 64% of consumers say they visit fast-food restaurants because the price is reasonable, while 53% say the same of fast-casual restaurants

Compiling findings from more than 1,000 consumer responses, as well as menu and industry data from the Ignite database, the comprehensive 2018 Canadian Future of LSR Consumer Trend Report serves as a guide for foodservice operators and suppliers to help them better understand how consumer usage, attitudes and preferences toward fast-food and fast-casual restaurants are evolving and to identify key areas of opportunity.

Technomic publishes a complete library of Consumer Trend Reports. To learn more, please visit Technomic.com or contact one of the individuals listed below.

Contacts:
Press inquiries and report details: Kelly Weikel, (312) 506-3830, kweikel@technomic.com
Purchasing details: Patrick Noone, (312) 506-3852, or pnoone@technomic.com

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