In early February, Reuters reported that Yum! China surpassed 590 million memberships in its digital loyalty programs, which translates to a whopping 40% of the nation.
Yum! China CEO Joey Wat told investors that the KFC loyalty program is “really helping our long-term and short-term business,” highlighting the growth of its KPRO brand, which is essentially a premium, better-for-you iteration of KFC. Wat says 80-90% of KPRO’s sales come from KFC loyalty members.
Consultants have attributed some of the success of Yum! China’s KFC app to the unique structure of its membership program involving paid and invitation-only tiers that provide free deliveries and prioritization options in delivery queues – unlike most U.S. restaurant brands, which tend to rely on third-party platforms more than they’d like.
Reclaiming Online Orders
Steve Morris, CEO of NEWMEDIA.COM and creator of RankOS, a new operating system designed to enhance brand visibility across AI-driven and traditional search environments, says many operators are tired of giving up “their share of the margin to third-party aggregators,” citing Uber Eats as an example, which takes 15-30% commissions on orders.
“That $50 meal suddenly loses up to $15 in margin before you’ve flipped a burger,” Morris told FI.
And the perks extend beyond dollars, as gaining more control of customer data is also an invaluable asset for restaurants.
“You own the data. Third-party aggregators hold your customer relationships, and so you hold an illegible version of your data. Brands that switched to apps using this approach transitioned to data-driven where they can micro-target users with AI upselling,” Morris explained.
He highlighted Potbelly’s recent integration of Flybuy’s AI location engine, which “delivers context and proximity-based in-app messages the moment the customer is in range” and “turns first presence into an instant conversion” while allowing brands to “maintain control of the preparation and customer experience.”
However, launching your own app is only an effective strategy when it functions properly.
Before launching the website He Cooks, Kyle Taylor worked in tech-focused marketing for several years and said that restaurant concepts often lose online orders to third-party platforms because their apps are rife with technical difficulties.
“It’s usually not a lack of features. It’s a lack of trust. The app is unreliable at peak hours, pickup is chaotic, the UI adds steps instead of removing them, or loyalty starts to feel like a claw-back instead of a thank you,” Taylor told FI.
“When the experience breaks, customers do not complain for long. They just revert to the old habit, or they open DoorDash… because that’s what these mobile experiences are ultimately designed to compete with.”
Modern consumers are busy, and they’re only willing to incorporate apps into their routines if they make their lives easier.
Habit and Anticipation
“The strongest players are using mobile to create habit and anticipation, not just transactions,” said Jessica Wagner, SVP of Product & Design at Fueled, a digital agency that has built apps, websites, AI integrations, gamified experiences, and more for the likes of Apple, Google, and The New York Times.
“In our experience, the highest-performing restaurant apps focus less on one-off offers and more on reducing friction, rewarding consistency, and giving customers a reason to open the app even when they are not hungry yet. Starbucks remains the gold standard here,” Wagner told FI.
Bob Vergidis, founder and Chief Vision Officer of Point of Sale Cloud, also noted Starbucks’ mobile app prowess, as well as Chipotle’s.
“Starbucks continues to lead because their app has become part of people’s daily routine. Ordering, rewards, and pickup all work smoothly together, and that consistency builds trust over time,” Vergidis told FI.
“Chipotle has also done a great job using mobile to let customers customize their experience and feel more connected to the brand, which shows up in repeat usage and loyalty.”
While fostering connections with users is one way to increase app usage, engendering a sense of exclusivity within that tight-knit community can take it to the next level.
Exclusivity Meets Inclusivity
“Taco Bell is another standout, especially in how it uses exclusivity. App-only drops, early access to LTOs, and playful naming turn ordering into a moment of fandom,” Wagner told FI.
“The app feels fun and self-aware, which matters for a younger audience that’s already skeptical of traditional loyalty programs. It is not just about saving money. It is about feeling like you are in on something,” Wagner added.
“Sweetgreen shows a more modern version of this strategy. Its app leans into transparency, customization, and lifestyle alignment,” Wagner told FI.
“Loyalty is earned through consistency and values, not gimmicks. Together, these brands show that the most effective restaurant apps do three things well: they reduce friction, create moments worth opening the app for, and use first-party data to make loyalty feel personal instead of transactional,” Wagner added.
“The strongest restaurant apps are the ones that feel genuinely useful to the customer. Dave’s Hot Chicken is a good example. Their app gained traction because it gave people a clear reason to download it and keep using it, and it fit naturally into how their customers already order and interact with the brand,” Vergidis said.
