Dive Brief:
- Panera Bread will test a points-based MyPanera rewards program in 216 cafes in the Chicago, Dallas, Denver, Seattle and Wyoming markets, the company wrote in an email to Restaurant Dive. The pilot will reach 4 million MyPanera members.
- Testing will begin on Jan. 28 in Dallas, with additional markets going live on Feb. 4. A broader rollout is expected for later this year, according to Panera.
- The new program offers 10 points for every dollar spent and will allow members to choose how they want to redeem rewards. The program also includes personalized rewards, bonus point moments and tailored offers.
Dive Insight:
Panera’s move to a points-based program is part of an ongoing trend among chains like Jimmy John’s, Philz and Sweetgreen, moving away from surprise-and-delight programs.
The MyPanera shift also comes three years after the chain updated the program with personalized rewards that allowed members to choose from different options based on their preferences instead of just one pre-selected reward. Panera has about 60 million rewards members, and between 25 million to 26 million are active, according to QSR Magazine. It has one of the longest-running rewards programs, which was established in 2010, so its success could push other chains to copy its structure.
The biggest change to the rewards program is the addition of the MyPanera+ tier that is available to Unlimited Sip Club subscribers or guests who spend $300 or more in a calendar year. That tier provides additional benefits, more options for rewards, baguette bonuses, anniversary rewards, and higher-value rewards like a free YouPickTwo on a customer’s birthday versus a free pastry, the company said.
The company plans to boost engagement, drive traffic and build loyalty with what it considers to be a more value-driven program. Building traffic will be key as the company deals with customers criticizing its food quality, higher prices and dissatisfied employees, according to a Mashed report. Customers are also unhappy with its 2024 menu overhaul, which removed several fan favorites.
Panera has been adding items back to its menu as limited-time offers, like its Asiago Bagel Stacks, and plans additional innovation as part of its Panera RISE transformation strategy that also includes improving value, boosting the guest experience and building new units while modernizing its portfolio. It also plans to reach $7 billion in sales by 2028, making a rewards program that can boost frequency even more ideal.
