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"Unless something changes,
tariffs will be the most important topic for supply chain management in 2025.”
- Prof. Jason Miller, Michigan State University 2/14/25
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Hunger
Games: How Gamified Loyalty Programs Help Restaurants Win
Gamification,
or the strategy of adding game-like elements to tasks or activities to boost
engagement, has made its way into restaurant loyalty programs recently – and
it’s more than a passing trend.
Seven out of
10 loyalty program owners believe the benefits outweigh the costs, with 76%
planning to leverage the tactic in their programs within the next two years,
according to Antavo.
“Gamification
doesn’t just refer to games in an app; it can be as simple as a visitation
challenge during an LTO, which will likely cost very little, whereas programs
centered around technology integrations or various external brand partnerships
will cost more,” said Julia Bigwood, manager of restaurant strategy
& analytics for Paytronix, which also identified gamified loyalty
programs as a 2025 trend to watch.
Bigwood and
other experts shared several tips and tactics with FI for restaurants looking
to gamify their own programs.
Points
and Tiers
Most
gamified programs leverage some form of points. Starbucks offers “Stars”
for purchases – but the quantity depends on the payment method used for the
transaction. For example, members who pay with cash or debit/credit cards
receive one Star per $1 spent, while those who pay with Starbucks Visa Credit
Cards earn three.
“Gamification
works on two levels of engagement and retention, which is why it’s so
compelling,” said Ingrid Sierra, CMO at Finfare. “It works by
offering short-term rewards that drive frequency of usage, and when built
correctly.
“[Gamification]
drives long-term retention by providing opportunities to progress to a higher
level of prizes or status.”
And these
higher tiers can be highly motivating. Dunkin’ Rewards, for instance,
honors its most diehard members with “Boosted Status.”
“A sense of
progression can make people feel like they’re achieving something for their
investments. As they advance through higher levels, ensure there are
opportunities with each new tier to offer increasingly valuable benefits and
rewards,” said James Berry, loyalty program expert & managing director
at Valuedynamx.
Badges
and Leaderboards
Many loyalty
programs also dole out badges for various milestones.
“Consider
customizing badges for different accomplishments with quippy names, creative
designs, and a personal touch sure to increase customers’ sense of
achievement,” Berry said.
For example,
Jimmy John’s offers “The Gauntlet” badge to members who purchase all 25
sandwiches on the menu within a certain timeframe, while other badges are tied
to streaks.
“Gamification
has an impact on behavior due to the reward it gives the user in the immediate. This also leans into cognitive biases that change our behaviors accordingly,
like our need to be consistent and keep streaks,” said Reilly Newman,
founder of Motif Brands.
And when
leaderboards are involved, interactions become even more rewarding. “The social
aspect fosters a sense of belonging and loyalty as users are more likely to
stay engaged when their friends and network are involved,” added Sierra.
Interactive
Experiences
For some
brands, badges and leaderboards barely scratch the surface.
“Gamification
works best when you actually use video games. … It’s about tapping into games
people already love,” said John Higgins, CEO of OS Studios.
The games
don’t necessarily have to be digital, either. Take McDonald’s Monopoly,
one of the earliest uses of gamification in the restaurant sector. More
recently, the chain has begun offering free Pokémon cards and stickers with
Happy Meals.
“Gamification
has also become a really powerful engagement tool to encourage trial and repeat
purchases,” said Robert Parker, creative director at BRIGADE Branding.
Next-Level
Tips
Although
gamification is all the rage for restaurants right now, Bigwood advises
restaurants to think carefully before integrating it into their loyalty
programs and provided these tips:
-
Set
goals: Reflect on what you are trying to achieve and what resources you have
-
Be
intentional: “Don’t bring in gamification just for the sake of it,” Bigwood
said. “Think about what types of behavior you want to promote and how your
customers will respond.”
-
Be
prepared: Craft a plan that will bring about your desired change
Above all
else, ensure gamification strategies are on-brand and resonate with target
audiences. If a restaurant’s customer base skews older, for example, in-app or
high-tech executions may end up delivering more frustration than value. Food Institute Focus
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Executive
Chef: Latin Flavor Explosion Has Only Just Begun
Chef Alexander
Sadowsky began a recent conversation with an admission:
“Swicy: I
personally can’t stand the word. It’s a term I absolutely hate,” he told The
Food Institute. “But I think the drive and the hunt for that sweet heat,
and the acceptance to it, is just going to expand.
“I think
you’re going to continue to see this treasure hunt for heat that’s globally
inspired.”
Sadowsky
serves as corporate executive chef with Twin Peaks Restaurants – a role
that requires him to research emerging consumer preferences. His life’s travels
have also seen him take up residence in Minnesota, Montreal, Washington, D.C.,
and now, Dallas. He searches TikTok and Instagram ad nauseum in
search of intriguing new menu items.
One thing
the chef has learned is that spicy flavors have virtually universal appeal.
“It’s
finally coming to fruition where we’re seeing (spicy) stuff hit more mainstay
restaurants, Blue Apron, Hello Fresh, and the higher-end grocery stores,”
Sadowsky said. “It’s just hitting a really cool saturation point.
“We went
through that Tex-Mex phase, then Mexican as a whole. Now we’re going into this
really cool area where it’s regionalized,” the chef said. “It’s a good
evolution.”
Bold flavors
from Mexican states like Jalisco and Oaxaca are moving to the forefront, as
well as dishes with heat from countries like Ecuador and Peru.
“We’re
finally starting to see very regionalized callouts of ingredients and dishes,
and it’s awesome,” Sadowsky said. “The food has always been good, and now we
just have the (spotlight) on it.”
Latin
ingredients and dishes that the chef sees gaining popularity lately include:
-
Aji
amarillo chili peppers
-
Habanero
peppers
-
Anticuchos
(marinated meat skewers)
-
Ceviche
The
inquisitive nature of Gen Z and Millennial diners has made Sadowsky’s job
especially enjoyable in recent years. The chef has found great success with
studying industry reports, noting trending dishes, and implementing them at
Twin Peaks.
“We recently
launched birria tacos in our restaurants – the guests demanded it,” Sadowsky
said.
“The sales
were so great during the test period that I had to go to our operators and say,
‘Hey … the guests are begging for this. We’ve got to figure it out.”
It’s not
always easy for restaurants (or retailers, or food manufacturers, for that
matter) to add new items from foreign cultures. But, in Sadowsky’s experience,
the effort is undeniably worth it.
“It’s a
never-ending chase,” the executive chef said. “You just try to look at it from
the consumers’ perspective – they all want it, so let’s figure it out.
Thankfully, we’ve had some really good partners, suppliers, manufacturers, and
third-party people that are helping us tell that story.
“Doing a
ceviche, or a spicy marinade, is a no-brainer.” Consumers, the chef added, “are
begging for it, so let’s deliver on it.” Food Institute Focus
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Starbucks’
Brian Niccol Really Doesn’t Want Howard Schultz to Save Him
Brian
Niccol has been CEO
of Starbucks for just over a fiscal quarter, but in this short time,
he’s already spearheaded more radical change than his predecessor, Laxman
Narasimhan, who was ousted late last year.
Fresh off a
coup, tensions are high.
Niccol’s
approach endeavors to resuscitate a brand mired by stagnation: for the fourth
consecutive quarter, same-store sales fell, this time by 4%, supported by an
overall 6% store visit drop. Even so, consolidated revenue met the café chain’s
expectations, reaching $9.4 billion.
The radical
“back to the basics” strategy eschews the earlier digital-first efforts to
cater to omnichannel consumers. The brand worries that, in offering a modern
experience, it has lost much of what made it tick. In a recent Q1 conference
call, Niccol lamented the loss of the company’s “coffeehouse” feel.
“Over the
past 4 months, we’ve been focused on getting ‘Back to Starbucks,’” explained
Niccol, according to Fortune. “We believe it’s the fundamental change in
strategy we needed to solve our underlying issues, restore confidence in our brand,
and return the business to sustainable long-term growth.”
The
Schultz Threat
A
conversation about Starbucks undeniably leads to Howard Schultz, who
started working for the chain in 1982 and has since boomeranged back twice
after first stepping down as CEO in 2000. He was a pivotal force in turning the
company into an international success, and in facilitating the domestic “third
wave” coffee movement that got Americans excited about specialty coffee.
He is
currently the company’s largest individual shareholder, with at least $2.4
billion invested as of Feb. 11. It’s safe to say, he has a lot to lose if
Starbucks goes south.
This time
around, however, a hypothetical Schultz intervention may not be as beneficial
as in the past. Last October, the National Labor Relations Board ruled
that Shultz unlawfully invited an employee to quit after they raised
unionization-related issues, the Los Angeles Times reported.
Similar
accounts of union-busting strategies may have factored into the ex-CEO’s decision
to step down two weeks early, in advance of Narasimhan taking the reins in
2023. But before Shultz left, he introduced a line of olive-oil-infused
“Oleato” beverages inspired by Italian culture, that was met with mixed
reviews, then later scrapped at the end of 2024.
A Starbucks
spokesperson told CNBC that, although the decision to discontinue the
products predated Niccol, it aligns with the CEO’s menu simplification
strategy.
All this is
to say, if Niccol fails to steer Starbucks back on track with his unique
approach, Schultz may not be able to navigate the café giant as adeptly as his
earlier endeavors.
Tech
and Progress – The Fine Balance
The
ex-Chipotle CEO has a track record for transformative leadership, overseeing
the QSR’s international development while doubling down on technological
integration like mobile pickup ordering, robotics assistance, and drive-thru
capabilities. He’s hoping to inject a similar technology assisted, human-first
technology approach into Starbucks.
This
approach is captured in the digital menu board initiative, which will be
deployed in the U.S. within 18 months. Niccol explained on a recent investor
call that it will allow the brand to merchandise different foods and drinks in
the morning versus the afternoon and better showcase its revitalized menu.
Some
additional tenets of the plan include a measure to cut menu items by 30% to
simplify its offerings and drive efficiency, reintroduce the condiment station
(with complementary plant-based milk options), offer ceramic mugs for in-store
customers, and a cup-writing policy to personalize the shopper experience where
employees are encouraged to write notes.
Additionally,
Niccol limited mobile ordering capabilities to 12 items per order to reduce
wait times and manage barista workload. Concurrently, the strategy also
improves the order pacing through a refined algorithm.
To show off
its updates and showcase the chain’s expertise in specialty coffee, the company
recently released a brand campaign titled “Hello Again” that promises espresso
drinks shaken “10 times, no more, no less” and milk heated to exactly 165
degrees Fahrenheit. Additional scenes explore the coffee-drinking experience
with shots of ceramic mugs and high-quality photos of espresso with foam, and
oily, fresh coffee beans being ground.
Shots of
Starbucks’ founding are also interspersed throughout, highlighting the
company’s nostalgic approach. Time will tell if appealing to the chain’s roots
will win the hearts of American consumers and if it can effectively communicate
its authenticity. Food Institute Focus
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Store
News:
Krispy
Krunchy Chicken
opened 605 new locations last year. With over 3,200 locations nationwide and
plans for even more growth in 2025, the C-store fried-chicken chain continues
to expand its reach with menu innovations and partnerships, reported Restaurant
Business (Jan. 27). Full Story
Starbucks CEO Brian Niccol is aiming to
tame the chain’s mobile order floods. Niccol says the mobile-ordering
bottleneck has led baristas to focus on pumping out drinks instead of serving
in-person customers, reported Reuters (Jan. 29). Full Story
Meanwhile, Starbucks
plans to cut 30% of its food and drink options by the end of 2025. CEO Brian
Niccol says the move will “clear the noise” and make room for future
innovations. While specific items haven’t been named, the company said it will
eliminate lower-selling menu items, reported TODAY (Jan. 29). Full Story
Chick-fil-A is on the cutting edge of QSR
drive-thru science. The chain regularly dispatches specialist teams to its
3,000 stores to study the minutiae of its workflow and parking-lot traffic
patterns to improve the consumer experience, reported The Wall Street Journal
(Feb. 1). Full Story
Waffle
House has instituted
a $0.50 surcharge per egg to offset soaring U.S. prices tied to the bird flu.
The breakfast chain serves 272 million eggs annually, reported CNN (Feb.
4). Full Story
Dave’s
Hot Chicken reworked
its operations and supply chains to pay workers $2 more per hour. The chain has
increased consumer spending via self-ordering kiosks and convinced 80% of its
operators to switch to automatic dishwashers, reported The Wall Street
Journal (Feb. 11). Full Story
Meanwhile, Dave’s
Hot Chicken may be exploring a potential sale that could value it at about $1
billion, including debt, according to sources familiar with the matter. The
company is said to be working with North Point on a sale process,
reported Reuters (Feb. 12). Full Story
Cracker
Barrel debuted a new
sweet and savory menu for spring. The new offerings include OREO Stuffed
Cheesecake Pancakes, as well as Southern-inspired entrees like Shrimp n' Grits
and a Louisiana-Style Shrimp Skillet. Full Story
Chicken
Salad Chick
announced it had a record-breaking year, closing 88 deals in 2024, up 60% YoY.
The chain now boasts 288 locations across 20 states. Full Story
KFC feels it
may have a hit on its hands with its new Saucy sister restaurant. While KFC’s
struggles in the U.S. continued last quarter, it said early results from the
first location of its chicken-tender concept have been “encouraging,” reported Restaurant
Business (Feb. 6). Full Story
Cousins
Maine Lobster is
expanding into the Orlando and Daytona markets, launching its first food truck
in central Fla. this month. The expansion is led by Yunus and Thameem Shahul,
brothers and franchisees who executed a multi-unit Fla. deal in 2024. Full Story
Executives
on the Move:
McDonald’s CMO Tariq Hassan announced
his resignation. McDonald’s Canada CMO Alyssa Buetikofer will
returned to lead the U.S. business as SVP, CMO, and customer experience officer
on Feb. 15. Full Story
Panera
Bread appointed Santhosh
Kumar as its chief information officer, effective Feb. 12. Kumar will
oversee the development, integration, and deployment of the chain’s tech
solutions across its 2,200+ locations. Full Story
Red Robin
announced its chief
marketing officer Kevin Mayer has left the company. No reasons for the
departure or details about an interim replacement were provided, reported NRN
(Feb. 12). Full Story
Freddy's
Frozen Custard & Steakburgers announced it promoted Erin Walter to CMO. In the
role, Walter will oversee the fast-casual restaurant concept's marketing
initiatives to boost brand awareness, guest engagement, and business growth. Full Story
Jollibee has debuted Chicken Tenders paired
with creamy Signature Tender Sauce across all U.S. locations. The new menu item
features 100% all-white meat chicken tenderloins that are hand-breaded and
battered in-store. Full Story
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Inspiring
Supply Chain Resilience: A Farm-to-Fork Approach
Issues like
geopolitical conflicts and severe weather disruptions have taught food and
beverage industry stakeholders that supply chain resilience is the key to
ensuring post-pandemic economic safety.
This was a
central theme of The Food Institute’s recent report titled “Supply Chain
360: Building Stronger Networks.”
“In complex
supply chains, different materials are often interdependent – one small issue
can ripple through the entire operation,” ChainVision founder Ilker
Erkose told FI, in a conversation about how companies can leverage
supply chain management strategies to build stronger networks. “Managing these
dependencies and understanding their impact on production is essential for
ensuring continuous, efficient operations.”
Given the
sector’s reliance on organic raw materials, a holistic approach that ensures
redundancy and security across the supply chain is key to ensuring products can
be created and consumed with minimal economic and ingredient supply losses.
Ihab
Arafah, general
manager at NAFCEL explained during an education session at the recent Gulfood
Manufacturing event in Dubai that there is no single solution to these
challenges. He did, however, recommend businesses look to risk management
solutions that rely on many sources of food, especially local producers, and
nearshoring more of the supply chain to bring the operation’s production and
consumption locations together. Additionally, technology that supports
transparency and monitoring must not be overlooked.
“Food
disruption is not a new problem. It has happened throughout all time… [and]
humans have always come to common sense solutions,” he said.
Operators
today are looking for unique solutions to build resilience. A report from Gartner
earlier this year found that Gartner Survey Shows 73% of businesses have
made changes to their supply chain network in the past two years with 46%
citing an increase in resilience or redundancy as a motivator for optimization.
Building
Resilience Through Flexibility
Brandon
Thornell, EVP of
supply chain and BPO at Advantage Solutions, said that driving
flexibility into supply chain distribution can help businesses deliver resilience
while promoting efficiency and cost reduction factors. One key method includes
leveraging direct-to-retailer models by working with third-party logistics
companies with large footprints to be able to respond to volatility in
brick-and-mortar and direct-to-consumer models.
“This allows
brands currently challenged with having the right inventory in the right place
to better manage that inventory amid shifts in velocity and demand by channel,”
Thornell explained. Food Institute Focus
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Complicated
Restaurant Results in December
Comparable
sales for the restaurant industry fell 0.3% in December as comparable traffic
dropped 3.2%, but these data points are complicated by the fact that
Thanksgiving feel into December according to Black Box Intelligence’s
standardized reporting calendar.
When combined
with November, the two-month period showed a 1.1% increase in same-store sales
growth. Additionally, same-store traffic growth was down 1.4%, which was the
strongest reported when compared to all other months in 2024. Full
Story
Selected
Results:
Chili’s recently reported a 31% same-store
sales increase, highlighting one of the biggest turnarounds in restaurant
history. The chain’s success is fueled by viral TikTok trends, value
meals like the $10.99 “3 for Me,” and strategic menu and operational
improvements under CEO Kevin Hochman, reported Restaurant Business
(Jan. 29). Full Story
Yum
Brands reported a 5%
increase in same-store sales for its U.S. Taco Bell operations, while KFC’s
global same-store sales rose 1%. Same-store sales for its Pizza Hut
division fell 1% during Q4, reported Reuters (Feb. 6). Full Story
Restaurant
Brands International
topped expectations for quarterly revenue and profit as its brands Burger
King and Tim Hortons performed well. Tim Hortons saw several
quarters of strong growth, particularly in Canada. Full Story
McDonald’s
posted its biggest
U.S. same-store sales decline in nearly 5 years. The company posted a 1.4%
decline in its fourth quarter, and some analysts argue its discounting could
hurt margins in coming quarters as well, reported Reuters (Feb. 12). Full Story
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