While restaurant subscription programs have in the past been far from guaranteed success, Los Angeles-based Sweetgreen, a health-focused fast-casual chain, has seen positive results from its Sweetpass pilot, offering daily credits for meal purchases for a fixed monthly rate. .

Related News: Sweetgreen launches ‘Sweetpass’ as restaurants leverage subscriptions to build loyalty

“We are at the beginning of our journey to create tailored promotions and loyalty to increase customer frequency and improve customer spend,” Jonathan Neman, co-founder and CEO of Sweetgreen, told analysts. during a call Thursday, March 3 to discuss the company. fourth quarter and full year 2021 results. “In January, we tested Sweetpass, a limited-time subscription offer. “We exceeded our pilot expectations across all customer cohorts, especially with new and late customers.”

Research from the March/February edition of PYMNTS’ Digital Divide series, Digital Divide: Restaurant Subscribers And Loyalty Programs, created in conjunction with Paytronix, found that restaurant subscribers are significantly more loyal than their non-subscriber counterparts. The research drew on a balanced census survey of more than 2,000 American adults conducted in late December.

Read more: Four in 10 consumers are open to restaurant subscription services

Specifically, the study found that restaurant subscribers are nearly twice as likely to use restaurant loyalty programs as non-subscribers, and 78% of subscribers consider themselves very or extremely loyal to their restaurants at preferred fast service, compared to 55% of the population. globally. Similarly, 79% of subscribers say the same about their favorite restaurants with table service, compared to 59% of the general population.

Neman noted that the program provided the restaurant with “a lot of interesting data,” which will help inform the brand as it “tests[s] and iterate[s its] way to what future loyalty [program] could be.” Going forward, the company wants to boost engagement with initiatives “including digital challenges, personalized offers, and membership options.”

Overall, digital sales accounted for two-thirds of the company’s revenue in 2021, with the bulk of those transactions taking place through the channel’s direct ordering platforms rather than third-party marketplaces.

Friendly’s opens the first location of its Fast-Casual brand

As the fast food segment continues to grow, some full-service chains are entering the category in an effort to appeal to consumers who prefer digital ordering over in-restaurant dining.

The Friendly’s full-service restaurant chain, which has 130 locations in the Mid-Atlantic and Northeastern United States, announced on Tuesday (March 1) that it had opened the first location of its first Friendly’s location. Cafe, a fast-casual concept, in Westfield, Massachusetts, in late February.

“We envision Friendly’s Cafe as an opportunity for technological innovation and additional menu to meet the changing desires of our customers, while adhering to our mission to bring family and friends together around the table to create new memories,” Craig Erlich , CEO of Friendly’s Restaurants, said in a statement.

Dine Brands is testing virtual restaurants at dozens of IHOP restaurants

IHOP’s upcoming loyalty launch isn’t the pancake chain’s only major digital initiative.

Read More: Dine Brands Prepares for IHOP Loyalty Launch with Technology Investments

In a call with analysts on Wednesday (March 2) to discuss Dine Brands’ fourth quarter and full year 2021 results, CEO John Peyton said the company is currently testing new virtual brands at some of the chain’s restaurants. of pancakes. The Thrilled Cheese and Super Mega Dilla brands, respectively a chain of grilled cheeses and a chain of quesadillas, are now present in seven test markets.

See Also: IHOP Relaunches Quick and Casual Spinoff After Pandemic Delay

“Early results are encouraging, and we recently launched a beta test in approximately 50 restaurants,” said IHOP President Jay Johns. “These virtual brands, which intentionally do not compete with our daily breakfast business, require minimal new SKUs and some require new equipment to run. We are excited about these flexible, lower cost options to meet the convenience needs of our customers and look forward to providing updates on our progress.

Digital orders account for a significant portion of all restaurant purchases, according to data from PYMNTS’ new Restaurant Friction Index, created in collaboration with Paytronix, which features survey results from more than 500 restaurant managers across the country. full service and fast service.

According to the survey, 41% of restaurant sales were generated through digital channels in September 2021. This finding reveals that digital channels are significantly more popular than in-restaurant sales, which account for 32%, and telephone sales, which represent 26%.

Also: PYMNTS Intelligence: How restaurants can leverage order-limiting tools as demand for delivery increases

McDonald’s faces $900 million lawsuit over ice cream machine

In the ongoing saga of McDonald’s ice cream machine problems, the quick-service giant is now the subject of a $900 million lawsuit filed Tuesday by Kytch, a small company that had worked on a device to help the restaurant brand to fix the machines, Wired reported. Wednesday.

The creator of the device alleges McDonald’s defamed him with false claims about its technology – which was intended to provide store owners with up-to-date information about problem areas – and collaborated with a competitor to scare off potential customers of Kytch.

McDonald’s told the publication in response, “Kytch’s claims are without merit, and we will respond to the complaint accordingly.”