Fast-Casual Restaurants Turn to Loyalty Programs to Counter Spending Slowdown
Amid economic uncertainty, consumers are cutting back on discretionary spending, prompting fast-casual chains like Chipotle, Starbucks, Cava, and others to double down on rewards programs to retain customers. What was once a nice-to-have perk has now become a necessity as diners prioritize value.
“Loyalty programs are no longer optional—they’re essential for maintaining customer relationships in tough times,” said Peter Fader, a marketing professor at the University of Pennsylvania’s Wharton School.
Industry data reflects the struggle: Black Box Intelligence reported that restaurant traffic grew just once in the past 12 months (November 2024), while only 43% of brands saw same-store sales growth in May. Loyalty members, however, visit 22% more often than non-members and frequent their preferred brands twice as much, according to Circana.
Loyalty Driving Sales
Starbucks: Rewards members accounted for 59% of U.S. transactions in Q2, with 34.2 million active users.
Potbelly: Over 42% of Q1 2025 sales came from digital orders, including loyalty users.
Chipotle: Its 30 million rewards members contribute roughly 30% of daily sales, helping the chain avoid steep price hikes.
Despite this, Chipotle posted its first same-store sales decline since 2020, while Starbucks has seen five consecutive quarterly drops. Meanwhile, Cava is defying trends with strong growth but faces investor pressure to sustain its expansion.
Innovative Rewards Strategies
Restaurants are moving beyond basic discounts to keep engagement high:
Cava overhauled its program in late 2024, introducing flexible rewards (free pita chips, entrees) and gamified challenges. A tiered system is coming soon.
Chipotle launched the "Summer of Extras" campaign, giving away $1 million in free burritos to incentivize visits.
Sweetgreen scrapped its confusing tiered model for a simpler rewards system, aiming to deliver "meaningful value" in a tight economy.
Starbucks replaced its 25-star reusable cup bonus with double-star promotions, maintaining participation despite some backlash.
Balancing Costs and Benefits
While freebies squeeze already-thin margins, chains bet on long-term loyalty outweighing short-term costs. Potbelly, for instance, switched to a coin-based rewards system in early 2024, resulting in an immediate increase in visits.
New entrants like Portillo’s are also jumping in—its "Portillo’s Perks" program, launched in March, uses a digital wallet instead of an app, targeting 1.5–1.7 million sign-ups by mid-summer.
As economic pressures persist, restaurants are betting that creative loyalty programs will keep customers coming back, even when budgets are tight.
— With contributions from CNBC’s Amelia Lucas and Jacob Pramuk.