Are Loyalty Programs Dead? Thirsty Thursday with Joanna Fantozzi of Nation s Restaurant News

Guest Joanna Fantozzi, Senior Editor at Nation’s Restaurant News and Restaurant Hospitality, joins Paul and Matt to discuss where restaurant loyalty is headed. Fantozzi argues “is loyalty dead?” is the wrong question and explains that loyalty programs mainly attract already-loyal guests, that consumers have limited appetite for downloading multiple apps, and that loyalty is evolving beyond points. The group discusses Starbucks reintroducing tiered rewards (including a new Reserve tier requiring about $104/month spend) and how changes like fewer stars per dollar and added complexity can frustrate customers and reduce perceived value. Fantozzi highlights consumer concerns about transparency and moving goalposts, shares a non-restaurant example of points expiring quickly, and points to digital wallet-based rewards as a growing alternative to apps. She previews an upcoming NRN story on unique loyalty approaches, including a Brazilian steakhouse using group rewards, and says subscription loyalty is unlikely to grow due to subscription fatigue despite examples like Panera’s Sip Club. They also cover how creators and influencers affect brand affinity, citing Chili’s momentum from influencer-driven content, and note that influencer-friendly loyalty is authentic and easy to explain.