How to tap into loyalty programs

The restaurant world is buzzing this week—today, we track breakfast chicken experiments, the surprising rise of line cooks as influencers, fall’s comfort-driven menu launches and McDonald’s bold call for industry-wide minimum wages. We're also diving into effective loyalty programs, post-pandemic profit slumps and lessons from a former hospitality whiz turned tech leader.

But first, can Mexico City be exported? More and more restaurants are trying to recreate the vibe.

Tipped off. McDonald’s exits lobby group and calls on other restaurants industry-wide to pay their staff a minimum wage.  

Spreading their wings. Restaurants experiment with chicken at breakfast as traffic declines.

Flash in the pan. How line cooks became social media’s most underrated influencers. 

Priced out. Is a fast-food price war looming? 

Carb loading. Fall menu launches focus on comfort.

How to tap into loyalty programs to increase diner frequency

Restaurant loyalty programs now go beyond points and freebies—with members visiting 22% more often, loyalty traffic now makes up nearly 40% of visits. Operators are offering exclusive perks like secret menus, early-access items, weekly drops and gamified features (e.g., Taco Bell’s Drops, Chipotle’s IQ game) to deepen engagement and frequency.

Why it matters: These evolved loyalty tactics are essential for boosting repeat business. Brands that deliver surprise, personalization and interactive incentives build stronger emotional bonds with guests. In a competitive landscape, such programs can drive consistent traffic, elevate brand connection and protect margins—making them a powerful lever for sustained growth. (Nation’s Restaurant News)

Restaurant profitability has taken a hit since the pandemic

Restaurant profitability in the U.S. remains significantly lower than pre-pandemic levels. In 2025, full-service restaurants typically report just 2.8% pre-tax profit margins, down from 4% in 2019. Limited-service venues fare only slightly better at 4%, down from 6%. Margin pressures persist despite elevated menu prices that turn away cost-sensitive patrons.

Why it matters: This squeeze on profitability underscores that price increases alone can't restore healthy margins when costs—especially labor and food—are surging. Operators must proactively manage expenses, rethink menu strategy and explore efficiency gains. In a fragile industry, even modest miscalculations can push a business toward insolvency. (Restaurant Business)

Restaurant-world lessons can be applied to tech and elsewhere 

What are the key takeaways from years in the restaurant business? One tech founder shares how important his time in the hospitality industry was and how those lessons can be applied to other arenas like tech. After years of running a conveyor sushi belt business, he shares some important advice for tech founders that includes a healthy obsession with customer satisfaction and building a culture of teamwork.

Why it matters: For restaurant owners, this piece validates the industry as a powerful training ground for leadership. The same principles that drive tech success—teamwork, relentless customer focus and strong culture—are forged daily in hospitality. Recognizing these transferable skills can inspire operators to view their work as not just service, but strategy. (Fast Company)

11,000

The number of restaurant jobs added in August. (Nation’s Restaurant News)

 This Texas-based Mexican chain is filing for bankruptcy

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15 celebrity-owned restaurants, bars and cafes in Los Angeles

Old-school pizza chains that quietly disappeared

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The Prep is written by Kelly Dobkin and edited by Lesley McKenzie.