Loyalty programs keep restaurant sales stable despite COVID-19 restrictions and vaccination warrants


Restaurants across the country are still figuring out how to run day-to-day operations according to COVID-19 recommendations and vaccine mandates, but research from ParTech Inc. and Punchh found in its Fall 2021 Trend Report that transactions were on the rise nationally and locally. in cities where “no vaccine, no service” policies were in place. These cities included New York, New Orleans, and San Francisco, where researchers analyzed year-over-year and month-to-month transactions from 200 of Punchh’s global brands.

Comparing July to August 2020, compared to the same period in 2021, Punchh’s total customer transactions nationwide increased by 108%, and loyalty-based transactions increased by more than 28%, according to a press release from the company. Overall, loyalty sales increased 35%, and more specifically, online loyalty sales increased an average of 14%.

Year over year, the average check size is down almost 64%, but the average loyalty check size has increased by 6%. Looking from June 2018 to July 2019 versus July 2020 to August 20, 2021, the national average check size has seen a 9% drop, but the size of loyalty checks has remained the same. Total sales improved 24% nationally on a month-over-month basis, and total transactions increased 37% nationally during the same period.

Punchh found that online sales year-over-year, month-to-month, and in all locked-down cities had not fallen, so despite uncontrollable and arduous factors, this revenue channel continues. to maintain. Additionally, in-person and online loyalty transactions have remained stable over the past 30 days compared to the previous 30-day period.

“With the pandemic leading to the addition of an online ordering component at many restaurants, customers are increasingly using loyalty programs, as evidenced by the significant year-over-year increase in sales. loyalty of our customers, ”Shyam Rao, co-founder of Punchh and CEO, said in the statement. “Loyalty solutions connect customers to the brands they love during an unpredictable time for both parties. These engagements become a necessity when it comes to creating lifelong value between fans and their favorite restaurants, thus strengthening the industry’s recovery.

Locally, where the Delta variant resulted in vaccine restrictions, compared to the previous 30-day period, Punchh analyzed 24.3 million New York restaurant transactions and saw a 10% drop in sales. total and a 14% drop in total transactions. . However, online loyalty sales and online loyalty transactions have remained stable for New York diners. The average check size of New Yorkers increased 5.24%, and the size of checks for loyalty sales increased 55.12% month over month. Of the 3.3 million restaurant transactions surveyed in San Francisco, total sales, total transactions, and check amounts all remained relatively stable month-over-month, while loyalty transactions jumped. nearly 11% and loyalty sales over 8%.

In New Orleans during the same period, the 1.2 million restaurant transactions examined found that total sales, loyalty sales, and transactions were all down, but the average check size did not. not decreased.

Over 200 global corporate brands, including Yum! Brands, Denny’s, TGI Friday’s and Casey’s are customers of Punchh, and more than 100,000 restaurants in more than 110 countries use PAR’s hardware, software, drive-thru and back-office solutions.

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