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Wingstop eyes loyalty program pilot for Q4
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Dive Insight:
Investing in technology continues to be a key strategy at Wingstop. Those investments have paid off, with digital transactions now making up more than 72% of the company’s systemwide sales mix.
Skipworth said the rollout of its digital kitchen display platform, Wingstop Smart Kitchen, and the forthcoming loyalty program explain why management is confident about reaching its goal of $3 million average unit volumes. During Q2, AUVs were at $2.1 million.
Wingstop already uses MyWingstop to build guest engagement. The database was used to inform guests of the relaunch of Crispy Chicken Tenders.
During that relaunch, the company saw “reactivation of lapsed users at a level we haven’t seen any menu innovation in the past two years,” Skipworth said. This has helped inform how the company plans to design its loyalty program, Alex Kaleida, Wingstop’s CFO and senior vice president, said during the call.
Wingstop also could use the loyalty program to help boost sales for lesser known products or boost slower dayparts, such as weekday lunch or late night, BTIG analyst Peter Saleh said in an emailed report.
Loyalty could help drive traffic and bolster same-store sales. Wingstop reported a rare same-store sales decline of 1.9% during Q2 — the first decline in three years.
Other fast casual chains have been updating or leveraging rewards programs to build better guest engagement Portillo’s launched an app-less reward program earlier this year that uses digital wallets.
Chipotle amplified its rewards program with a Summer of Extras campaign, a three-month gamified experience that offers members extra points, badges and prices upon reaching milestones. That campaign drew new members into the rewards program and boosted frequency and year-over-year spend.
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