Punchh Accelerates Restaurant Recovery and Increases Loyalty Sales for its Customers by over 25%

Rhea-AI Summary

Punchh has reported a significant 25% average increase in loyalty spending for its customers since Q1 2020, aiding over 200 enterprise brands during challenging times for physical retailers. Notable brands like El Pollo Loco and MOD Pizza have seen improvements in sales through enhanced customer engagement via Punchh's platform. El Pollo Loco notes that loyalty rewards accounted for 10% of their sales mix, while Fazoli's experienced a 182% year-over-year increase in spend during Q2. Punchh continues to support restaurants in navigating the impacts of the pandemic.

Positive

• Average 25% increase in loyalty spending since Q1 2020.
• El Pollo Loco reports loyalty rewards making up 10% of their sales mix.
• Fazoli's achieved a 182% lift in spend year-over-year in Q2.
• Expansion with 13 new restaurant locations planned this fiscal year.

Negative

• None.

SAN MATEO, California--(BUSINESS WIRE)--Punchh, the leader in customer loyalty, offers and engagement solutions for restaurants, convenience stores, and other physical retailers, today announced an average 25% increase in loyalty spend for its customers since Q1 2020. During such a critical time for restaurants and retailers, Punchh is empowering over 200 enterprise brands to lean into their most loyal customers to help them drive sales by building lifetime customer value and engagement. Brands such as El Pollo Loco and MOD Pizza are keeping customers engaged through the Punchh loyalty and engagement platform and seeing an increase in sales as a result.

“Since partnering with Punchh in 2017 to power our loyalty and rewards program, we have garnered over 1.9 million loyalty members. These members are a key driver for our business,” said Andrew Rebhun, Vice President and Digital Officer, El Pollo Loco. “Because Punchh integrated into our e-commerce and POS systems to provide a single, robust platform to manage loyalty and marketing, we were able to swiftly adapt to the changing needs of our customers at the start of the pandemic. As a result, at the end of Q2 2020, our loyalty rewards purchases made up 10% of our sales mix year-to-date, and we’ve driven a 7% increase in member spend YTD and an 11.9% increase YOY.”

Given the various restrictions placed on the restaurant industry as a result of the pandemic, Punchh’s restaurant brand customers rely on digital loyalty as a way to increase consumer engagement and drive record sales despite the current challenges within the industry. Over 150 million consumers leverage Punchh’s personalized loyalty and offers for restaurants of all sizes - from international brands to regional players.

“Understanding and catering to the individual wants and needs of our guests has always been a clear priority for us, but it has become an increasingly important part of our business over the past few months,” said Kevin Flaherty, Vice President of Digital Marketing at Mod Pizza. “Through our partnership with Punchh, in Q2 2020 we saw an increase in loyalty sales and lift in loyalty spend, making July and August of this year two of our most successful months for first-time guests throughout the lifetime of our loyalty program.”

“Through Punchh, we have truly unlocked the power of customer engagement and loyalty. During the pandemic, we remained focused on our commitment to streamlining operations through technology, building omnichannel loyalty, and providing timely rewards and offers such as our Super Family Meal promotion, to meet rapidly evolving consumer needs,” said Will Hanrahan of Fazoli’s. “As a result, in Q2 we drove a 182% lift in spend YOY at the height of the pandemic, grew loyalty program sign-ups by 28% from Q1, and hit our highest sales volume for any four-week period in our history. With such a strong and committed customer base, we are proud to expand with 13 new restaurant locations this fiscal year to continue to serve our guests.”

“When the pandemic hit, we knew we had a responsibility to help lead our customers through it by equipping them with the tools and insights necessary to lean into their loyal customers and continue to build relationships to drive same store sales,” said Shyam Rao, Cofounder and CEO of Punchh. “We are so proud to continue our partnerships with El Pollo Loco, Mod Pizza, Fazolis, and the rest of our restaurant brands and look forward to seeing their continued accomplishments as we help them build lifetime customer value during such a vital time.”

About Punchh

Punchh is the leading customer loyalty and engagement solution for restaurant, retail, and convenience store brands. For a decade Punchh has created consistent, modern loyalty experiences to help physical retailers understand their customers and use real data insights to serve them best. Powered through artificial intelligence, the company builds meaningful relationships and dramatically increases lifetime customer value through data driven one-to-one customer engagement. Nearly 200 global enterprise brands, including Yum! Brands (NYSE: YUM), Denny’s (NASDAQ: DENN), TGI Friday’s, and Casey’s General Stores (NASDAQ: CASY) rely on Punchh to grow revenue by building customer relationships. The company is based in Silicon Valley, California with a second US office in Austin, TX and global offices across Canada, India, the United Kingdom, and Singapore.