Dive Brief:
- Tim Hortons rewards members in the U.S. and Canada can now use a Scan & Pay feature in the restaurant’s app to pay for orders and earn and redeem rewards, the company wrote in an email to Restaurant Dive.
- Customers must link a credit card or Tim Card to the app in order to use the feature. Users can store multiple payment methods within the app and pick between them.
- The move could encourage customer adoption of and engagement with the coffee chain’s loyalty program. It’s the latest in a string of QSR investments in rewards programs to improve sales and frequency.
Dive Insight:
The convenience of Tim’s Scan & Pay technology could make it easier for diners to swallow menu price hikes, which are partially responsible for double-digit sales growth at the chain, parent company Restaurant Brands International said during its November earnings call. The company didn’t disclose the percent increase for Tim’s menu prices.
“Our strong digital capabilities, including the No. 1 food and beverage app in Canada, have enabled Tim Hortons to better cater towards guests, deliver a great experience, increase brand loyalty and drive over a third of sales through digital channels while growing digital sales dollars,” RBI CEO Jose Cil said on the call.
Innovation that eases the payment process for diners also seems a safe bet within the scope of possible loyalty program upgrades, especially given the backlash rival Dunkin’ received from fans when it altered the value of its rewards.
Coffee is an especially personal foodservice category because of how frequently customers order from their favorite chains, Stephen Zagor, an adjunct assistant professor of business at Columbia Business School, told Restaurant Dive in a recent interview. Because of this, chains need to tread carefully when altering coffee rewards.
Tim Hortons will offer bonus reward incentives throughout the upcoming months to promote the offering.
