News Feature | February 5, 2018

Restaurant And Hospitality News – February 5, 2018

Christine Kern

By Christine Kern, contributing writer


Restaurants can win big on Superbowl Sunday with online ordering; and Starbucks prepares to launch a new co-branded credit card and new loyalty card.

New Research Demonstrates Big Wins For Restaurants On Game Day

New research from orderTalk has demonstrated that online ordering is now a favorite pastime on Superbowl Sunday and other big event days. In 2017, restaurants using orderTalk’s digital ordering software reported Superbowl Sunday online ordering sales increases well above other non-event days. Catering also won big, showing a 400 percent increase in online sales transactions and a 300 percent increase in the amount of food sold online. Meanwhile, pizza chains experienced a 21 percent rise in online sales transactions and a 20 percent increased in the quantity of food items sold online. Sandwich chains also saw a 3 percent increase in online sales on the big game day.

“Online ordering software analytics such as these demonstrate just how mainstream online ordering has become,” explained Patrick Eldon, CEO, orderTalk. “It also highlights that restaurants can increase their online and catering sales drastically by ensuring that they are well-prepared for high-volume days such as these. A well-designed and efficient online ordering system will engage customers and ensure their loyalty.”

Starbucks Set To Launch New Co-Branded Chase Visa Credit Card

Starbucks is partnering with Chase and Visa to launch new credit cards in February and a new stored-value card in April, according to the Nation’s Restaurant News. On an investor call, Kevin Johnson, President and CEO of Starbucks, said that customers could earn reward points quicker in-store and also earn points elsewhere by swiping the card at other retailers.

The Starbucks co-branded card and the pre-paid card, which will come shortly after, "will afford options, a very rich rewards proposition for people who spend on credit, and the unique store-value product offering rewards for customers who prefer debit," Johnson said in an investor call last November.

And Johnson indicated that this could be just the tip of the iceberg, stating during the meeting that the prepaid partnership was “just the beginning of Starbucks opening up its digital ecosystem as well as extending its payment platform.”

Starbucks has not yet released finalized details of the credit card, but H Squared Research retail analyst and author of Black Market Billions Hitha Herzog says coffee lovers can anticipate positive rewards.

"Starbucks has a very robust rewards program for the coffee obsessed and this partnership with Chase and Visa is an extension of that. While details haven't fully been disclosed, customers should look for perks such as free drinks on birthdays, the ability to order ahead while using the card, and discounts on favorite drinks," explained Herzog.

"In addition, card holders should look for points that rival or are better than the Chase Sapphire Premium Card, which gives users triple points for every $1 spent on dining purchases," she added.

Starbucks is not new to the rewards game, however. In the U.S. and Canada, 42 percent of all transactions were made using the Starbucks' prepaid loyalty card or app, which essentially acts as a refillable gift card. The number of active users with the program grew by 11 percent to 14.2 million users, according to Nation's Restaurant News.

In the most recent investor call, Johnson explained, “With only 14 million of the 75 million or so unique customers who visit us each month signed up for Rewards, we have a tremendous opportunity to leverage our new digital technologies to initiate and advance additional direct digital relationships,” he said.