Coffee Shop Loyalty: How Reward Programs Drive Revenue

People enjoying Scooter's coffee

Coffee Shop Loyalty: How Reward Programs Drive Revenue

Strong customer loyalty is crucial to the success of any business – and coffee shops are no exception. If you’re a regular coffee drinker, you’ve likely seen big and small coffee brands use reward programs to generate repeat business. But how does a loyalty program typically work? Do they really drive coffee shop sales? Statistics show that 85% of consumers believe loyalty programs encourage them to continue shopping with a brand. Learn why partnering with a franchise that offers a rewards program is ideal for your bottom line.

Understanding Loyalty and Rewards Programs

Used interchangeably, a loyalty or rewards program is a marketing tactic designed to encourage customers to make repeat purchases, rewarding them each time. Typically, a company with a loyalty program offers their customers incentives in the form of rewards, discounts, or exclusive benefits based on their purchasing behavior. For example, customers may earn points for each purchase they make, which can later be redeemed for rewards or discounts.

It’s a popular strategy used across many industries. Over 90% of companies have a rewards program of some kind, according to SaaS (software as a service) company Queue-it. But what makes for an effective loyalty program? There are several key components:

  • Value: Clearly illustrate the benefit of participating in the program. Outline what customers get for their repeat visits to your business.
  • Easy to use: Make sure customers can easily track their points and redemption options. The system should be straightforward and user-friendly, ideally in the format of a phone app.
  • Personalization: Tailor rewards and offers to each customer’s preferences and past purchases.
  • Communication: Keep customers informed about any updates to program benefits and regularly remind them of their point balance to maintain engagement.
  • Flexibility: Offer a variety of redemption options so customers can pick the reward that best suits them.

At Scooter’s Coffee®, we have our own point-based loyalty program through our mobile app. Customers earn three points, or “smiles,” for every dollar they spend. Once a customer earns 180 smiles, a free drink is added to their rewards account.

To garner coffee shop loyalty for all our locations, we also allow for easy ordering and payment through our mobile app. Additionally, should a customer want to pay with a gift card, cash, or debit/credit card, they can still earn smiles by scanning the QR code before payment.

Unlock Coffee Shop Loyalty with Scooter’s Coffee

More than just a rewards program, Scooter’s Coffee offers a competitive franchise opportunity to driven entrepreneurs looking to join the growing coffee industry. With our proven business model, strong brand recognition, and track record of success, our franchisees can maximize their investment. See a few key metrics straight from our FDD:

  • $1,268,540 Top Quartile Drive-Thru Kiosk AUV* (Overall AUV $879,725)
  • 20.45% Top Quartile Net Profit Margin* (Average Net Profit Margin 14.81%)
  • 26.4% Drive-Thru Kiosk Average Labor*
  • $259,462 Top Quartile Average EBITDA* (Average EBITDA of $130,295)

Interested franchise candidates should have a net worth of $500,000 and at least $250,000 in liquid capital to qualify for a Scooter’s Coffee franchise. Initial investment costs start at just under $900,000.**

With almost 800 locations nationwide, we still have plenty of territories available for investment. To learn what markets we have near you, request information today, and one of our franchise development representatives will get in touch.

*This is historical representation of what some of our franchised stores earned as described further in Item 19 of the FDD. This information is based upon 272 of 618 Drive-Thru Kiosks that were open during the entire 2023 calendar year and provided complete information. Your results may differ. There is no guarantee you will stay in business that long or that you will achieve the stated levels of same-store sales growth within that time period. See Item 19 of the FDD for more information.

**Please refer to Item 7 of our FDD