After the coronavirus pandemic, the F&B industry transformed customer engagement strategies, with loyalty programs emerging as a driving force in restaurant marketing, generating an annual 12-18 per cent incremental revenue growth compared to non-member revenues.
This shift represents a broader movement toward customer-centric approaches in the industry.
The Middle East and Africa (MENA) region, in particular, is at the forefront of this change. Projections indicate the loyalty program market will reach $1.59 billion by 2028, growing at a compound annual rate of 8.5 per cent.
Millennials are driving this trend, with 54.7 per cent actively participating in restaurant loyalty programs as of 2021, establishing themselves as the dominant user demographic. At the same time, Gen Z is also showing a growing interest in loyalty programs, especially as they become more financially independent and seek value in their dining experiences.
Beyond basic rewards: The transformation of digital loyalty
Today’s restaurant industry faces a key challenge: fostering long-term customer relationships rather than securing one-time visits.
Restaurant-owned mobile apps have emerged as robust solutions, offering direct communication channels with customers while eliminating external aggregator fees. According to a report by Paytronix, customers who use these apps tend to spend more, revealing that guests who placed delivery orders via mobile apps spent an average of 10 per cent more than those who ordered takeout. Additionally, 62 per cent of customers who order via mobile apps strongly favour loyalty programs.
For instance, Papa John’s loyalty programme, Papa Rewards MENA, exemplifies this approach. A comprehensive system where customers earn points for online orders or through its app. These points unlock exclusive discounts and special promotions that can be redeemed for menu items ranging from pizzas to desserts. The amalgamation of a restaurant operations system and a loyalty solution has become one of the most important factors of business success, driving both sales and service delivery.
The power of personalisation in restaurant marketing
Success in modern loyalty programs hinges on personalisation, with a 20–30 per cent increase in customer satisfaction and engagement for personalised programs. As of 2024, customers moving from third-party platforms to direct channels expect engaging brand content and compelling storytelling.
According to McKinsey, 71 per cent of consumers expect companies to deliver personalised interactions, and 76 per cent get frustrated when this doesn’t happen.
The most effective apps feature dynamic main screens that constantly update with personalised offers and messaging based on individual user behaviour and brand values. Take Caramel Group’s Caramel Club: their program goes beyond simple point accumulation, offering members personalised rewards based on their dining history and creating exclusive VIP experiences.
Similarly, Jumeirah Group’s Dining Loyalty Program and Alshaya Group’s Dining Concepts have also successfully transformed traditional point-based systems into sophisticated customer engagement platforms.
Converting single visits into lasting relationships
Data shows that customers who make three orders are twice as likely to return compared to one-time purchasers.
This insight drives the integration of apps with POS systems, enabling seamless synchronisation of consumer order data, bonus points, and personalised content delivery. Furthermore, successful apps prioritise user experience with features like one-click ordering, quick payment options, automated feedback forms, and high-quality visuals.
As a vivid example, the Zaatar w Zeit Rewards program combines point-based rewards with strategic elements like early access to new menu items and exclusive event invitations. The integration with their mobile app creates a seamless experience for tracking and redeeming rewards, while seasonal promotions like double-point days maintain customer engagement.
Are loyalty apps worth the restaurant marketing investment?
Restaurant-owned loyalty apps represent a significant business opportunity to reduce costs and increase revenue. These apps provide financial benefits by eliminating aggregator commissions, which can reach up to 30% while strengthening customer relationships through personalised experiences and targeted marketing campaigns.
A recent PYMNTS survey of nearly 2,000 consumers revealed that direct restaurant ordering through apps and websites is twice as popular as aggregator platforms, with only 8% of consumers using aggregators for their most recent purchases. This trend suggests that restaurants investing in digital platforms are well-positioned to capture a growing share of the digital ordering market.
Data-driven strategies are fundamentally transforming the future of restaurant marketing in the MENA region. These strategies centered around personalised loyalty programs delivered through branded mobile apps, leveraging data analytics for targeted campaigns, integrating with food delivery platforms, and utilising social media for real-time engagement.
Adopting innovative technologies like AR, AI chatbots, sustainable practices, and influencer collaborations will give restaurants powerful tools to enhance the customer experience and build brand loyalty in an increasingly competitive market.
By Alexander Ponomarev, CEO at Syrve MENA.
