Think about the most successful chains like In-N-out, raising canes, five guys… what do they all have in common? No reward systems. But wouldn’t they make so much more money by having one? Are they stupid for not having it? No, they’re actually smart. Because loyalty point systems actually punish the best and most frequent customers and reward the unloyal and cheapest customers. The customers who go all the time and buy the most expensive items are then stuck paying more or subsidizing the rewards and offers for new/deal sensitive customers. But those new customers are actually worse because they signed up to get deals and only buy from the restaurant giving the best deal. The loyalty system doesn’t even work. In fact, it drives away the most loyal customers because it’s no longer fairly priced to them and because they remember what prices used to be. In short, the reason the restaurant chains I mentioned don’t have loyalty systems is because they have strong loyal customer bases and they know that a reward system would therefore raise prices and simultaneously actually drive their base away and replace them with infrequent value sensitive customers.   submitted by   /u/ServentOfGod7 [link]   [comments]