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Free Perks? Why Not, As Burger King Tests New Loyalty Program

Free Perks? Why Not, As Burger King Tests New Loyalty Program

Burger King is promising consumers a loyalty program offering perks and freebies that aren't available at rival fast-food chains.

What Happened: Burger King shared its vision of a loyalty program where "loyalty is reealllllyyyyyy rewarded," the Restaurant Brands International Inc (NYSE: QSR) brand stated in a press release. Unlike its rivals limiting rewards to certain menu items, Burger King is going to "do what the others don't."

As part of a testing phase beginning Tuesday in Los Angeles, Miami, New Jersey, and Long Island and New York, consumers will collect 10 "Crowns" for every $1 spent. The "Crowns" can be redeemed for any item on the menu, even pricey options such as a Double Whopper.

Other perks include points on delivery orders, free upsizing of a drink or fries on every order, and double points during a consumer's birthday month.

Related Link: Morgan Stanley's Restaurant Pair Trade: Upgrade Darden, Downgrade Restaurant Brands

Why It's Important: The fast-food landscape has picked up momentum amid the COVID-19 pandemic as the group was well-positioned to address new safety concerns with delivery and drive-through infrastructure already in place.

Chains are scrambling to find new and unique ways to differentiate themselves from their rivals to maintain recent gains. One way is through loyalty, and Burger King merely joins others who announced similar initiatives.

"It feels like we've just accepted what brands have told us is possible with loyalty programs over the years," Ellie Doty, chief marketing officer of Burger King, North America said, "so as we started working on Royal Perks, it was easy, let's do what the others don't."

What's Next: Burger King hopes to expand its loyalty program nationwide, but a testing phase is first required in a few select regions.

(Photo: Burger King)


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