UMC Report: Recommendations
From undertaking our primary research we concluded that many fast food restaurants are yet to offer some sort of loyalty card scheme in which you gain points to receive free items. The only major chain that we could find which offered this was Subway who have the ‘SubCards’. These points gained can be redeemed for free meals when reached.
This is a good scheme to introduce as it increases customer loyalty & is a way to encourage repeat visits especially when they have nearly reached enough points for a free Subway. They have also made it easier to gain points in case you forget your card, by creating an iPhone application so you can scan your points onto your phone as well as the SubCard. This application will also help to advertise for Subway, showing you latest menus to its nearest restaurants.
However further research showed that for Subway, the loyalty cards are not actually all that rewarding when thought about the cost savings in depth. You earn 1 point for every 10p you spend in Subway. That is to say you need to spend £100 at subway to claim a free 12” Sub or buy a sub of the day 23 times in order to receive another one for free. Another clever trick we found out is that they round the points down, so if you buy a cookie for 49p you’ll get 4pts not 5 and everything in the shop is priced ending with 9p. If you only ever buy the 2.29 sub of the day you will have spent £2 in those 9p’s which earned 0pts which means you’ll only have saved 29p on a sandwich you have had to buy 23 times to get for “free”.
Another conclusion we came across is that apart from pizza services and foreign takeaway services many of the top fast food restaurants such as McDonalds and Burger King are yet to offer a local delivery service. Our results showed that the majority of people would be more likely to spend money on McDonalds’ through delivery service is they had one rather than visit the restaurant itself. For these big chains a...