Dive Brief:
- Krystal launched a points-based loyalty program this week across its store system called Club Krystal, the brand said in an emailed press release.
- Consumers earn 10 points for every dollar and can begin redeeming for rewards at 500 points, Caroline Patheja, senior marketing manager for Krystal, confirmed to Restaurant Dive. The most expensive item to redeem, at 1,800 points, is the Scrambler Bowl.
- Patheja said Club Krystal is the QSR chain’s first comprehensive loyalty system, but the chain has tested a variety of promotional and digital programs in the past.
Dive Insight:
Krystal is the second brand this week to launch a points-based loyalty program, after Jimmy John’s renovated its loyalty system.The renewed interest in loyalty programs by QSR brands comes as consumers pull back on spending.
A recent study by Circana found that consumer traffic overall fell by 1% for foodservice in Q2, but that occasions involving value meals — which can include loyalty promotions — saw traffic increase by 1%.
Krystal cited this price sensitive, value-seeking behavior as a driving factor in adopting the loyalty program, which was built out by Punchh.
“Now was the perfect moment to launch Club Krystal Rewards because guests are increasingly seeking value, personalization, and digital convenience,” Patheja said.
The chain has been working to modernize its branding and improve its digital channels — it updated its app alongside the debut of the loyalty program.
The chain tested the loyalty program in some stores and saw stronger traffic and spend trends than non-test locations, Patheja said. Krystal anticipates the new program will drive both traffic and check growth while providing the company with valuable transaction data.
The new program is built to incentivize repeat visits, rather than acting as a simple discount, with different food items unlocking at different point values. For example, members can redeem a free Krystal slider at 500 points or a free Chili Cheese Fries at 1,650 points. Consumers ascend through tiers based on their total points, with Krystal Kravers earning less than 1,000 points, Krystal Lovers earning between 1,000 and 1,649 points and Krystal Hall of Famers earning north of 1,650 points. These tiers come with unspecified special rewards.
Krystal has been diversifying its growth strategies, with new units opening in travel centers. Parent company SPB Hospitality recently sold off several brands to allow it to focus on its core brands, including Krystal, and earlier this week announced the appointment of G.J. Hart, Red Robin’s turnaround architect, as CEO and chairman.
