Gen Z is taking over restaurant loyalty programs — and forcing brands to adapt

• Gen Z now leads restaurant loyalty signups, reshaping rewards programs.
• Survey data shows that diners will switch brands for better, faster loyalty perks.
• QSR giants are doubling down on digital rewards to win Gen Z — and it's paying off.

Gen Z isn't just signing up for restaurant loyalty programs. They're raising the bar for how those programs have to work.

By 2024, nearly half of all new loyalty program signups came from Gen Z as the cohort overtook millennials as the most active generation in restaurant rewards programs for the first time, according to data from PAR Punchh, a loyalty program software from the foodservice tech company PAR Technology. That number has only increased as more and more of the generation, aged 14-29, start flexing their spending power.

"Gen Z isn't just participating," Savneet Singh, PAR's CEO, told Business Insider. "They're redefining loyalty."

National data backs up just how central these programs have become for this generation. Gen Z consumers make up a higher-than-average share of restaurant customers who say being a member of a loyalty or rewards program is important when choosing where to eat, the National Restaurant Association's 2026 State of the Restaurant Industry report showed.

That holds true across dining behaviors — whether they're eating in, ordering delivery, or grabbing takeout — and across segments, from drive-thru and limited-service chains to full-service restaurants.

Singh argues that the generational takeover is structural, not cyclical. Gen Z grew up with smartphones and came of age during a pandemic that turbocharged mobile ordering and digital payments. For them, digital ordering, real-time rewards, and seamless app experiences aren't just perks — they're table stakes.

"When loyalty is frictionless, Gen Z shows up," Singh said. "When it's clunky, they move on immediately."

Rewards programs are no longer optional

New survey data from PAR underscores the significance of loyalty programs for consumers. In a December report based on a survey of 1,000 US diners, nearly 70% said loyalty programs help them manage costs in today's inflationary environment. One-third said they're using restaurant loyalty programs more often because of economic pressure, and another third said their usage has held steady.

A good deal from a rewards program can make all the difference. One in four respondents said they'd switch to a less-preferred restaurant for better loyalty perks, and half said they compare offers before deciding where to eat.

How restaurants respond to that demand defines which formats resonate most with younger diners. PAR's platform data shows Gen Z over-indexing at quick-service restaurants like McDonald's and Taco Bell. In 2024, they accounted for more than a third of check-ins at QSR brands, compared with 20.8% at fast-casual restaurants like Chipotle and Panera Bread.

Singh said the appeal is execution: speed, price, convenience, and integrated loyalty perks in one place. Fast casual establishments, by contrast, can sit in "an awkward middle ground" — not as convenient as QSRs and not as experiential as full-service dining.

In a crowded landscape where PAR found that over half of consumers prefer managing no more than five loyalty accounts, clear value and seamless execution can determine which brands make the cut. And the chains that embrace the generational trend are already seeing the payoff.

Taco Bell delivered 7% same-store sales growth in the fourth quarter, driven in part by transaction gains, especially among younger customers. The Mexican chain's active loyalty members climbed 31% in 2025, and digital channels saw double-digit growth, as app-exclusive drops and rewards nudged its core customers to visit more often.

CEO Sean Tresvant told Business Insider earlier this month that "loyalty is going to continue to be a big story for us," adding that Taco Bell will be "really leaning into" its rewards strategy going forward.

McDonald's is also leaning heavily into digital engagement. On its fourth-quarter earnings call on Wednesday, CFO Ian Borden described active loyalty membership as the company's "single most important digital metric." McDonald's has about 210 million 90-day active loyalty users across 70 markets, and 46 million active users in the US, he added.

Borden said that, in the US, customers visited 10 and a half times in the year before joining the loyalty program — and 26 times in the year after.

"When we get consumers into our loyalty program, they visit more often, they spend more over time, and they interact with us more frequently, so they get more value in their interaction with us, and we get more value by them interacting with us," Borden said.

Starbucks also recently revamped its rewards program, bringing back its tiered system, extending the window for members to redeem their free birthday reward, and introducing a quicker-to-earn tier that lets customers redeem 60 Stars for $2 off any purchase — a move that lowers the barrier to instant gratification, which Singh said is particularly appealing to Gen Z.

That kind of immediacy matters. PAR's survey found that discounts and free items or upgrades remain the most influential rewards, while more than half of respondents said better reward value, such as a surprise free item after a large order, would prompt them to switch programs.

For Singh, the takeaway is clear: loyalty is less about points and more about performance. The brands that make participation effortless, deliver instant value, and respect privacy boundaries won't just win Gen Z — they'll define the next era of dining.