Kinship Through Loyalty: A Binding Force That Makes Strangers Family
Branded Chooses Major League Eating over Joey Chestnut in Loyalty Dispute
In an unusual move, the Branded team has sided with Major League Eating (MLE) in a corporate sponsorship dispute with 16-time Nathan's Hot Dog Eating Contest champion, Joey Chestnut. The decision comes as a result of Chestnut's partnership with Impossible Foods, a competitor of Nathan's, and MLE's subsequent ban on the world record holder.
The Branded team and Chestnut are reported to have a mutual respect for each other. However, the partnership with Impossible Foods led MLE to ban Chestnut from competing in the league. The move aligns with Branded's views that organizations, in partnership with their athletes and employees, can create and capture value together in a professional, respectful, and mutually beneficial manner.
Branded's Founder expresses excitement about the upcoming "Unfinished Beef" competition special between Takeru Kobayshi and Joey Chestnut on Labor Day and encourages comments on the team's decision to choose MLE over Chestnut to be directed to his partner, Michael "Schatzy" Schatzberg.
A significant portion of the hospitality industry is slow to adopt technologies and innovations compared to other sectors. Nevertheless, the digital transformation underway will help the industry bridge the gap. Branded has a particular focus on the Guest Engagement sector, which encompasses various tools that facilitate venues connecting with customers for a better experience and increased share of wallet.
One of the most important verticals within this sector is Loyalty. According to ResearchandMarkets.com, the loyalty market in the United States is expected to grow by 10.4% annually, reaching $30.38 billion in 2024. This growth demonstrates the crucial role of loyalty programs in the foodservice industry.
Operators can expect to invest more in loyalty programs and rewards systems in 2024, making it an optimal time to explore platforms and tools that help operators better understand their customers and earn a greater percentage of their spending. Customer engagement is vital in creating a more personal and improved experience, beating the competition, and increasing revenue.
Spendgo – Loyalty Marketing for Restaurants & Retailers, a company that Branded is invested in, emphasizes simplicity as a key to success in the loyalty program space. The company advocates for making the sign-up process as easy as possible and tracks three vital Key Performance Indicators (KPIs) for loyalty programs: Sign-ups, Adoption Rate, and Incentive Redemption Rate. The adoption rate is crucial in measuring how much guests utilize the program, while the Redemption Rate assesses the level of customer engagement.
Spendgo regularly achieves up to 65% adoption rates compared to the industry average of about 10%, demonstrating the potential value of a well-executed loyalty program for operators. It is essential for restaurants to align their respective tech-stacks, considering the extremely fragmented nature of the foodservice industry and the shift towards a more tech-centric customer base.
Another investment of Branded, Tablz, is a guest fulfillment system designed to help restaurants better manage guests' requests and create additional revenues for operators. Tablz, two years old this week, has achieved significant growth and previews promising prospects for its future. Class A restaurants have been particularly enthusiastic about the platform, with its focus on seamless reservation, pre-ordering, and group booking features.
The multi-faceted nature of the hospitality industry —people, service, and food & beverage— necessitates digital engagement to effectively market and use data to create personalized experiences for guests. By fostering stronger connections with existing customers and attracting new ones, revenue growth can be accelerated in a fiercely competitive market.
As the United States celebrates its Independence Day, the hospitality industry also prepares for growth in loyalty programs and digital engagement. Technology is revolutionizing Venues/Brands to allow for more effective marketing and creating personalized guest experiences. The industry's fast-growing focus on customer loyalty, engagement, and data-driven marketing is reshaping the foodservice landscape.
- Branded's portfolio companies, such as Spendgo and Tablz, focus on leveraging technology to improve the guest experience, food-and-drink revenue, and loyalty programs in the hospitality industry.
- Spendgo, a company supported by Branded, concentrates on enhancing restaurant and retail loyalty programs by making them simple, trackable, and personally engaging, ensuring high adoption and redemption rates.
- Tablz, a guest fulfillment system backed by Branded, streamlines reservations, pre-ordering, and group bookings, facilitating better management of guest requests for increased revenues in the restaurant sector.
- As the focus on data-driven marketing, customer engagement, and loyalty programs expands in the hospitality industry, podcasts discussing these topics and their impacts on the food service and lifestyle sectors can offer unique insights for industry leaders.
