Restaurants of all sizes are discovering the power of loyalty programs. But not just any loyalty programs; increasingly, loyalty is becoming less about the punch-card and more about the exclusivity and experience offered by the restaurant.
That’s certainly the case at Rib & Chop House, a 13-unit casual chain based in Bozeman, Mont. The brand, part of Finally Restaurant Group, recently rolled out its House Royalty Card, which offers loyal customers a 10% discount on food and booze, monthly $50 gift cards, priority waitlist status, a set of steak knives, and additional perks. It costs customers $600 a year, billed at $50 per month.
Yaron Goldman, the CEO of Rib & Chop House, said the program may seem like a steep price for the company to pay, but members visit the concept on average five times per month and spend 14% more than non-members. Combined with the fact that Rib & Chop House is focusing its growth efforts on cities with 50,000–200,000 residents, the chain is quickly becoming a community centerpiece in each of its markets.
Goldman joined the most recent episode of Take-Away with Sam Oches to talk about the unique loyalty program, as well as how Rib & Chop House has streamlined the concept to prepare for its just-launched franchise program and what he thinks about the impending recession and its impact on high-end concepts like his.
In this conversation, you’ll find out why:
- You can streamline prep and production without sacrificing quality
- You can’t grow if you’re not consistent
- It pays to be a big fish in a small pond
- If you treat your loyalty members like royalty, they will pay you back
- Customers find value in how they feel in your restaurant, not just in how much they pay
- In full service, the back of the house is where we should expect to see most tech innovation
Contact Sam Oches at [email protected]