Dive Brief:
- KFC launched KFC Rewards in the U.S., allowing customers to earn rewards on digital orders made on the company’s app or website, the chain said in a press release Tuesday.
- Members earn 10 points for every eligible dollar spent online. Points can be redeemed for free food in KFC’s Secret Recipe Vault, which includes offerings like free eight-piece Kentucky Fried Nuggets, a free chicken sandwich or a free side. These rewards will always rotate.
- KFC’s rewards program is already available in other countries, such as the U.K. and Ireland, which updated its version with gamification and instant rewards in 2022.
Dive Insight:
The launch of KFC Rewards will further parent company Yum’s strategy to boost digital sales, which grew 20% and reached $7 billion Q3 2023, CEO David Gibbs said during a November earnings call. The KFC Rewards program is only available for digital purchases, providing an extra incentive for customers to order online.
KFC U.S. is the chain’s second largest market at 15% of total system sales. Any uptick in digital sales will have a significant impact on overall sales. As of Q3 2023, system sales were up 3% in the U.S., per the company’s earnings release.
KFC could see similar success with its program as its sister company Taco Bell, which launched its rewards program in 2020. Taco Bell’s loyalty customers spend 40% more on purchases than non-members, Gibbs said. Taco Bell plans to enhance its program this year with more exclusive experiences and early access to new products. It will also create more personalized experiences by integrating its loyalty program with its digital menu boards.
Several other QSRs have updated loyalty programs within the past 18 months, as well. Potbelly updated its rewards program with additional redemption offers in January while Subway, Domino’s, Starbucks and El Pollo Loco revamped their programs last year. Many of the revisions were done to create different rewards tiers and to add more personalized offers. Personalization will continue to be a major focus for rewards programs as a way to boost engagement this year.
