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Why loyalty is your sharpest weapon in a tougher market

Rachel Wintle, GM of Quantum Jump Sydney, explores why loyalty strategy — done right — could be your strongest weapon in a tightening market.

Rachel Wintle, GM of Quantum Jump Sydney

Australian restaurant operators don’t need another recap of how tough conditions are. Cost-of-living pressure has tightened consumer wallets, labour costs have risen, and from 1 October 2026, the ban on card payment surcharges will force a real reckoning with margin. Absorb the cost, reprice the menu, or find smarter ways to drive the revenue that covers it. Most operators will need to do all three.

Loyalty that actually moves the dial

Driving customer loyalty is part of that equation, but not in the superficial sense the industry has often treated it. A stamp card or a half-hearted points scheme isn’t going to move the dial. What works is a deliberate strategy that keeps existing customers spending more, visiting more often, choosing you over the competition, and attracting new customers with generosity. The data on this is unambiguous.

According to the Australian Loyalty Association’s 2025 Loyalty Report, 65% of consumers now say loyalty programs are an important factor in their restaurant and QSR purchase decisions, up ten percentage points in a single year. That’s the biggest annual jump of any discretionary category measured. When Australians like a loyalty program, 74% visit more frequently and 70% spend more. More striking still: 60% will actively choose the brand with the best loyalty program over a competitor. That’s an opportunity for another reason to win customers.

Ironically, the economic context can help some categories, not least well priced QSRs who using smart customer engagement and loyalty strategies can offer strong value options and immediate reasons to visit again.

Consumers want rewards now, not later

The key word is immediate. Consumers are losing patience with long accumulation cycles and far-off rewards. The ALA data shows instant discounts and cashback are now the most preferred benefit types. “I need savings NOW, not some voucher I can use in three months if I remember” is the consumer sentiment you’re designing for.

What good looks like: lessons from QSR

The QSR category has produced some genuinely instructive examples of loyalty done well.

KFC’s Rewards Arcade, launched in the UK and Ireland to address engagement between purchase occasions, is great gamification. Built around a ‘chicken algorithm’ that serves up in-app game experiences, it’s supported by triggered customer journeys that create touchpoints well beyond the transaction.

Guzman y Gomez uses its GOMEX app to create a similar habitual relationship, with a free burrito on sign-up, a simple and generous earn rate, and regular $5 Burrito Day promotions that create event-like moments of excitement and value. This program just makes sense, and you can see why students like it. Meantime, it’s perplexing why Subway have chosen this moment to close down their Subcard program; sure, maybe it needed evolution, but closing it when it was a proven mechanic to drive repeat visitation is a surprising move.

Keep it simple, make it human

Beyond digital sophistication, the fundamentals of a strong program remain consistent. Consumers want it to be easy to earn, easy to redeem, and easy to understand. Complexity kills participation.

One area the industry consistently underinvests in is the role of staff in program activation. Your front counter team is your most effective recruitment channel, genuine loyalty drivers themselves.

Also sometimes just leaning in to being fun and differentiated helps; for example, a coffee shop, Cafe Milano in Massachusetts, encouraged customers to dance for free coffee. This went viral and led to TV coverage and millions of views. This is a great example of a brand not forgetting the importance in how they make their customers feel, from walking (or dancing) in the door to that first bite of food and beyond.

Your data advantage starts here

The longer-term strategic case for loyalty investment is this: every member who transacts through your program is building a first-party data asset that belongs to you. You know what they order, how often they visit, what offers they respond to, and when they start to disengage.

In a category as competitive as Australian QSR, with more international entrants arriving every year and margin pressure intensifying, the operators who win won’t just be those with the best food or the best locations. They’ll be the ones who know their customers best, and make those customers feel it.


Rachel Wintle is GM of Quantum Jump Sydney, a strategic marketing agency specialising in loyalty, CRM and customer engagement.

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