Dive Brief:
- Red Robin launched a revamped rewards program Thursday in which members receive a point for every dollar spent on a qualifying purchase, the chain said in a press release.
- For every 100 points, members receive a $10 reward that can be redeemed for menu items.
- The changes to the program follow an internal survey the chain conducted last year, in which over half of guests said they wanted “to earn more rewards faster.” Its old program granted a free entree for every nine entrees purchased.
Dive Insight:
Red Robin’s rewards program, which has over 13 million members, was previously “more of a discount program rather than rewarding our guests for their loyalty to us,” CEO GJ Hart said during the company’s February earnings call.
“We intend to transform our loyalty program into a VIP like experience, delivering more relevant messaging to our members and ultimately fostering a new generation of Red Robin ambassadors,” he said.
In addition to the new reward structure, members also receive “sneak peeks and early access to new menu items, exclusive offers, including free birthday burgers for adults and kids,” and a free appetizer for new members when they sign up, Red Robin said.
Each $10 reward must be used within 60 days, according to the company’s terms and conditions. The birthday burger reward is offered to members who provide a birthday and opted into receiving promotional marketing via text or email. The birthday reward is valid for one free item under Gourmet Burgers, Tavern Burgers or Veggies & More and must accompany another purchase of at least $4.99.
The rewards program reboot is part of the chain’s ongoing efforts to improve the guest experience and improve operations. Last year, it launched several new menu items and revamped several existing menu items, including its burgers, which are 20% larger and served on a white plate.
Customer response to its latest changes has been favorable. In its Q4 2023 survey of its loyalty base, 52% said its burgers are better, 54% said food quality has improved and 59% said hospitality and service has improved, Hart said.
At the end of last year, revenue increased by $37.5 million to $1.3 billion and comparable restaurant revenue grew 1.6%, according to an earnings release.
