Introducing ChowNow’s Free Loyalty Program for Restaurants: Loyal Local
With the COVID-19 pandemic causing so many restaurants to close their dining rooms, lay off staff, and shut down all together, there’s a new urgency to ChowNow’s mission of helping local restaurants thrive.
We want to do everything we can to help our restaurant partners sustain their sales, strengthen their customer relationships, and serve their communities for years to come. That’s why we’re excited to introduce a new, free loyalty program for your restaurant: Loyal Local.
Our Product team has been working tirelessly to get this up and running, and we’re offering it to our live restaurant partners first. We want you to join early so you can start seeing the benefits immediately.
Let’s take a closer look at how it all works.
What is ChowNow’s Loyal Local membership program?
Loyal Local is a membership program between diners and your restaurant. Customers can prepay a membership fee to join — 100% of which goes directly to you — and in return they get a discount on orders for the coming year when they order from your restaurant’s website, branded mobile app, or from the ChowNow website, iOS app, or Android app.
You can think of it as a subscription loyalty program: Your customers will pay upfront to support your restaurant and sustain it throughout the year. In turn, they’ll get a perk whenever they order.
With this program, restaurants get a cash infusion, while customers are incentivized to order again and again straight from their favorite eateries.
How much does it cost?
We’re proud to offer Loyal Local to your restaurant at zero cost. This is truly meant to drive more revenue back to your restaurant — we’re not here to take a cut.
What are the benefits?
We’ve designed the Loyal Local program to achieve three important goals for your business:
- Put dollars in your pocket immediately, at no cost to you. With your customers paying upfront, you’ll get the money when you need it most—right now.
- Increase customer loyalty and boost your order volume for an entire year. Loyalty programs have been shown to increase both order frequency and order sizes. As much as 60% of consumers report that membership in a loyalty program increases their visits to a business, and frequency and order size are closely correlated. When your customers know they’ll get a discount every time they order, they’ll spend more and keep coming back.
- Lock those loyal customers into repeat ordering—increasing your profits and avoiding third-party commissions. After all, that’s why you have ChowNow!
How does it work?
Your diners sign up for your membership program and select from one of three tiers: pay $25 to get 10% off orders for 1 year, $40 to get 15% off orders for 1 year, or $100 to get 25% off orders for one year.
The year-long membership—which does not automatically renew—works at a single location only, and these discounts will only apply on Direct orders placed through your own website or mobile app, or Discover orders placed through the ChowNow website or mobile app.
Where can I see it in action?
This page will let you see all the restaurants that have opted in so far. Keep in mind, your restaurant will also have your own web page that you can share with your customers. Here’s an example for a beloved Vietnamese restaurant in Los Angeles, Pho Saigon Pearl.
25% off is a big discount. Can I just offer the Bronze and Silver tiers to my customers?
In order to participate in Loyal Local, you must offer all tiers to your customers. That said, the way we’ve designed the offers ensures that you’ll only provide discounts to your most loyal patrons. In fact, a Gold level member would need to spend at least $400 on orders at your restaurant before you even start discounting. Take a look at the math in the next section of this post to see how this works out.
Is this a good deal for me?
Yes! You pay nothing to be part of the program, so all the membership revenue goes directly to you up-front.
If you’re worried about discounting hurting your revenue, consider that your customers will need to spend even more before you start actually giving away any percentage of your sales. Let’s do the math.
For example: A customer joins your membership program for $100 to get a 25% discount on their orders for one year. This customer will need to spend another $400 on orders (meaning $500 total spent at your restaurant, including the $100 membership fee) before they would hit the break-even point and start to save money. In other words, it’s only after your customer spends this $500 that you would truly start discounting.
Imagine if that customer spends a total of $1,000 on orders, plus their $100 membership fee. It would actually end up saving them $150 — a 15% savings over full price orders. Take a look at the table below to see how it pencils out.
That 15% that your restaurant would give in discounts is a fraction of what those orders would have cost your business if they’d been ordered through a third-party platform.
Through this process, you incentivize repeat orders while training your loyal diners to order better now and far into the future.
How will the Loyal Local program be promoted to my customers?
We’ll promote the Loyal Local through ChowNow’s marketing channels, as well as help you get the word out through your own channels.
We’ll also equip your restaurant with a marketing toolkit that includes social media images, 4×6 cards to drop into every takeout bag, and a new, branded email template that we’ll set up and send out on behalf of your restaurant to your diners. We’ll also advertise the program with ads and press — getting as many customers on board as we can to support your restaurant.
How do I opt in?
We emailed an opt-in form to your restaurant — fill out the three required sections, and we’ll get you set up! And please don’t hesitate to reach out if you need the opt-in form sent to you again.
Check out this video from ChowNow’s CEO, Christopher Webb, for a more in-depth explanation of how this product works: