Dive Brief:
- Fatburger debuted its first loyalty rewards program, Fatburger Rewards, on Thursday, according to a press release.
- Members earn points for every $1 spent on eligible purchases and can redeem $5 off for every 75 points. New members receive $5 off an order of $20 or more, valid for 30 days at participating locations.
- The rewards program launch comes just a few weeks after the chain’s parent company renamed itself OHG Brands as Fatburger’s new owner starts to plot its post-bankruptcy future.
Dive Insight:
Fatburger Rewards will likely result in additional frequency and larger average checks from members, as loyalty members in general historically spend more. The chain will also offer app-only offers, limited-time promotions, bonus rewards and exclusive perks, Jessica DePrizio, senior director of marketing at Fatburger, said in a statement.
The rewards program will also help the chain attract new customers as it opens locations across the U.S. and internationally. Prior to its bankruptcy, Fat Brands had hundreds of units in the pipeline following an aggressive franchise push. Even after the bankruptcy petition, Fatburger continued to open locations this year, including expanding into France and opening its first Jacksonville, Florida, restaurant.
Fatburger, along with 11 other entities, has been under new ownership since summer, when FBG Bid Co. bought Fat Brands out of bankruptcy for $595 million as part of four transactions that ultimately split up the company. It reduced the entity from 18 concepts to 12. Fat Brands declared bankruptcy in January after the company was unable to pay down over $1 billion in debt that accrued after years of acquisitions.
