The quick-service restaurant (QSR) industry has experienced an unprecedented wave of loyalty program launches and overhauls. From legacy brands finally entering the digital loyalty arena to established players completely rebuilding their program architecture, brands face an inflection point where sitting still has become riskier than evolving. As traffic declined and value-seeking behavior intensified, brands made a collective bet: loyalty program strategies cannot be static; they must continue to evolve as our consumers do.
According to Merkle’s 2025 Loyalty Barometer Report, engagement among members enrolled in up to five programs decreased from 93% to 88% since 2024. Among those enrolled in six or more programs, only 64% are actively earning and redeeming, reflecting the oversaturation in the market. As loyalty fatigue sets in and competition intensifies, QSR brands must rethink how they differentiate their programs—not just to stand out but to stay relevant.
This shift demands a deeper understanding of loyalty’s evolving role. With changing visit patterns, menu inflation, and an ongoing battle for digital attention, brands are realizing that loyalty isn’t just a marketing lever—it’s a behavioral engine. The best programs don’t just reward transactions; they rewire habits.
Let’s uncover the key strategic approaches that have emerged, what brands are getting right, and explore our framework for evaluating where your own loyalty program sits in this new competitive landscape.
Recent strategic approaches across QSR loyalty programs
- Expanded Rewards Choice Architecture That Feels Personal
When members can curate their own reward strategy, whether that’s saving points for a monthly splurge entree or spending immediately on daily coffee upgrades, they engage with the program on their terms. Choice creates control, and control drives satisfaction.
Many QSRs have expanded their rewards menus to add other items/categories to drive choice, including items across mealtimes to support day-part expansion (breakfast) and introducing lower tiers to drive early and often redemption. For example, Jimmy John’s evolved its loyalty strategy from a surprise-and-delight model (Freaky Fast Rewards) to a structured points-based model (JJ Rewards). This format—now considered the gold standard in the QSR industry—empowers members with greater flexibility, giving them control over when and how they redeem their points.
KFC has a unique rewards catalog in both name and structure. The "Secret Recipe Vault" ties to the brand's heritage while featuring dynamic, rotating rewards rather than a static menu. This approach keeps the program fresh for consumers and gives KFC operational flexibility to manage food costs, trial specific items, and create urgency around redemption. The vault concept transforms functional point redemption into brand-aligned storytelling, encouraging members to check back regularly to discover what's newly available, turning routine transactions into moments of discovery.
- Tailoring Your Loyalty Program for High-Value Demographics
Rather than a one-size-fits-all approach, sophisticated programs create sub-tiers or programs for specific high-value segments. Chipotle launched "Chipotle U Rewards", the first major QSR college-exclusive loyalty program. Members can earn at a higher rate than their standard rewards program (12 points per dollar, vs. the standard 10), receive 1,000 bonus points at enrollment, and engage with milestone-based rewards uniquely relevant to them, such as surprise drops during finals week and graduation celebrations.
- Integrating Gamification into Your Loyalty Strategy
Gamification leverages the psychology of completion and achievement and is quickly becoming the new normal for QSR brands, given the high order frequency and mobile-app first experience. Our Loyalty Barometer Report reveals this shift, with 54% of consumers expressing interest in tracking their progress over time within a program—a feature that fosters a sense of accomplishment and deepens engagement.
In 2025, Portillo’s introduced its first-ever program, featuring a thoughtfully designed gamified element centered around badge collection. Guests can earn playful distinctions like the “Seasonal Sippers” badge awarded for trying new flavors and the coveted “Top Dog” badge reserved for the brand’s most frequent visitors. These badges highlight a personalized touch for their members, rewarding specific behaviors that increase emotional loyalty. In addition, Portillo's offers surprise-and-delight bonuses for earning badges, such as branded merch and free menu items, giving tangible value to their most engaged guests while maintaining the flexibility to tailor rewards to individual member behavior.
- Establishing Aspirational Tiers with Strategic Category Expansion
Chopt Creative Salad Co. demonstrates how to architect loyalty tiers that drive meaningful behavior change while expanding reward categories beyond core menu items (i.e., redeem for free delivery or $5 off). Chopt Rewards features three aspirational status levels (Member, VIP, Elite) with variable earning rates of 8, 10, and 12 points per dollar, respectively, creating clear incentives to increase spend and frequency to reach higher tiers. The VIP and Elite tiers offer richer birthday rewards, monthly perks and bonus choppings, and Elite Express pick-up, delivering value and convenience for their most loyal guests.
Most recently, Chopt expanded their program in September 2025 to include catering rewards, recognizing that their ultra-fans who host gatherings represent high-value occasions worth incentivizing. By offering 5 points per dollar on catering orders, Chopt captures a share of wallet during these celebration moments while turning loyal individuals into brand ambassadors who introduce Chopt to their networks.
Key Considerations When Evolving Your Loyalty and Digital Strategy
QSR brands are increasingly recognizing the tangible value their loyalty programs deliver, making it more important than ever to prioritize ongoing evolution over complacency. But how can you tell when it’s time to hit reset and reimagine your program for what’s next?
Here are key steps brands can take to avoid stale loyalty programs and move toward next-generation engagement:
- Monitor for stagnation signals: Regularly conduct voice of customer research and track key program KPIs (redemption rates, active member ratio, visit frequency lift) to identify when your program needs evolution.
- Map the integrated experience: Conduct customer journey mapping to identify friction points and opportunities to create seamless experiences across mobile, in-store, drive-thru, and delivery channels.
- Align your value proposition to growth cohorts: Ensure your program structure and strategic reward categories appeal to priority growth segments, whether that's Gen Z, families, business lunch crowds, or late-night visitors.
- Build emotional connection: Create brand-right opportunities to engage members outside transactional moments through surprise-and-delight rewards, experiential perks, gamified experiences, community building, or values-aligned initiatives that drive emotional loyalty beyond points.
The Path Forward
Loyalty in QSR has evolved beyond transaction perks like free fries. It’s now about driving frequency through personalized, emotionally resonant experiences that build lasting connections. Whether you’re refining an existing program or starting from scratch, Merkle’s Loyalty Strategy team is here to help you benchmark your current approach and navigate the path to next-generation loyalty.
