News Briefs

American consumers intend to travel more in 2024, but that doesn't mean rising travel prices and the increased cost of living aren't affecting how they view trip planning and travel reward programs, according to The Pathway to Program Profits, a preview of an upcoming survey report from arrivia, a travel technology company that provides travel loyalty, booking and marketing solutions to consumer-facing companies.

Arrivia's comprehensive 2024 Travel Loyalty Outlook report will be available in early 2024 and will explore trends among brands that offer travel rewards programs and the consumers and members that use them. The report's findings reveal challenges facing those loyalty programs and identify opportunities to attract, retain, and engage with members based on changing attitudes toward loyalty, value and travel.

The report analyzes a September 2023 survey conducted by arrivia of more than 2,200 U.S. consumers about their 2024 travel plans and the role of travel rewards and loyalty programs, alongside a concurrent study of over 100 loyalty decision-makers about their program strategies and priorities for the upcoming year. It compares consumer and business perspectives on program effectiveness and goals and examines changes in brand and traveler priorities since arrivia's 2021 study of loyalty professionals and American consumers.

Over two-thirds of surveyed consumers (67%) find value-oriented issues most frustrating when booking a trip, with 42% saying they prioritized value more in recent months. In contrast, only 20% of the surveyed program managers view demonstrating the value of their travel rewards as a major challenge.

"Our report findings suggest that not all brands recognize how crucial value has become to the American consumer in today's economic environment," says Jeff Zotara, arrivia Chief Marketing Officer. "To remain competitive and capture their members' travel dollars, brands must identify new ways to provide that value better than anyone else and then make sure they clearly convey these differentiators to members."

Travel loyalty programs shift focus from increased membership to profitability

While travelers have increased focus on value, travel brands have shifted priorities from overall membership growth and retention to profitability, emphasizing improving member engagement and increasing incremental spending among program members and customers.

• Only 8% of brands identified customer retention as the top objective of their loyalty strategy, compared to 30% in arrivia's 2021 survey; 57% chose new member acquisition as a program goal for the year ahead, down from 70% in 2021.
• The findings also show a notable shift in travel brand goals: customer lifetime value and program revenue have gained prominence, with the importance of increasing customer lifetime value rising from 16% in 2021 to 29%, and the goal of boosting total member spending jumping from 41% to 54%.

Bridging potential disconnects through expanding the value proposition

The report concludes that brands can reach their engagement and profitability goals by providing strategic discounts on the most popular travel products like hotel stays and expanding earning and redemption options to improve their members' experience.

• A successful way to increase the appeal of offers and conversions is through niche market offerings with a strong following, like cruise travel. Cruise enthusiasts represent more than one-third of the total travel market and have specific preferences that can be catered to through loyalty programs and reward options.
• Cruises are also a market prime for expansion; 32% of consumers expressed immediate interest in a cruise deal, while 50% would consider the offer.

"In today's economic environment, brands across the spectrum are under pressure to generate more revenue from customers, and the travel industry is no exception," added Zotara. "The most obvious way for travel loyalty programs to drive more revenue from existing customers is by taking a member-centric approach to value – leveraging technology – like big data, machine learning and AI – to gather data and develop personalized offers that speak to member preferences."

Arrivia's The Pathway to Program Profits preview report identifies opportunities for brands to boost revenue and conversions while deepening member relationships by addressing the importance of the value and utility of travel rewards – including the right selection of reward options combined with the right level of customer service.

Chipotle Mexican Grill announced it is investing in Greenfield Robotics, a company founded with the vision of making regenerative farming more efficient, cost-effective, and sustainable by leveraging the latest advances in AI, robotics, and sensing technologies, and Nitricity, a company seeking to tackle greenhouse gas emissions by creating fertilizer products that are better for fields, farmers, and the environment. These minority investments are being made through Chipotle's $50 million Cultivate Next venture fund.

Cultivate Next makes early-stage investments into strategically aligned companies that further Chipotle's mission to Cultivate a Better World and help accelerate the company's aggressive growth plans. As a people-first company, Chipotle is seeking opportunities that will elevate the human experience for its restaurant teams and suppliers as well as increase access and convenience for its guests.

Robots for Regenerative Agriculture 

Conventional farming destroys weeds with chemicals and soil tillage, resulting in escalating costs, soil erosion and degradation of soil, resistant weeds, and health risks for both wildlife and humans. Greenfield Robotics provides regenerative agriculture solutions without chemicals. Their fleets of autonomous robots are lightweight and cut weeds between rows of broadacre crops, day or night, reducing dependence on herbicides while supporting regenerative farming practices and reducing risk for farmers.

With its Cultivate Next investment, Greenfield Robotics will continue its efforts to build out its fleet of autonomous agricultural robots and develop additional capabilities for forthcoming iterations of its robots, including micro-spraying, cover crop planting, and soil testing.

"The work of Greenfield Robotics to build out a tech forward alternative to herbicides plays an important role in ensuring a more sustainable future for the agricultural industry," said Curt Garner, Chief Customer and Technology Officer, Chipotle. "We will help Greenfield Robotics scale their robotic offerings and explore how their robots can be deployed on farms within our supply chain."

"Like Chipotle's commitment to Food with Integrity, we believe in the future of real, responsibly and sustainably raised food," said Clint Brauer, founder of Greenfield Robotics. "In partnership with Chipotle, we can continue to explore creative solutions to some of the biggest challenges facing farmers across the United States."

New Age Fertilizer 

Inspired by the natural occurrence of lightning breaking down nitrogen in the air and rainwater bringing it to the soil as nitrate to create natural fertilizer, Nitricity has pioneered a practice of creating artificial lightning. The company leverages air, water, and renewable energy from the artificial lightning to produce a cleaner, more sustainable, and cost-efficient fertilizer. The current process of producing, distributing, and using nitrogen fertilizer by way of the Haber-Bosch method requires a large amount of fossil fuels and emits significant amounts of carbon dioxide, contributing to 5-7% of total global GHG (greenhouse gases). Nitricity's nitrogen fertilizer has 5 to 10 times less GHG emissions due to its electrified production and field application process. Nitricity is building its production model of fertilizer on or near its end customers to limit the emissions from fertilizer distribution and application. Currently, up to 20% of fertilizer in the U.S. is imported through an expensive and complex supply chain.

Nitricity has started field trials for their fertilizer product with Salinas Valley farmers, including Chipotle suppliers in the region. Funding from Cultivate Next will be used to scale up Nitricity's production of nitrogen, build out the company's infrastructure, and support the launch of its first commercial product within the next two years.

"We're proud to support Nitricity's pursuit of a product innovation whose environmental benefits are complimentary to Chipotle's approach to Food With Integrity," said Jack Hartung, Chief Financial and Administrative Officer, Chipotle. He added, "Fertilizers have experienced steep price increases in recent years due to supply chain issues, fossil fuel price volatility, and rising distribution costs. Nitricity's fertilizer offering not only has the potential to reduce the carbon footprint of the fertilizer industry, but it can be a cost-effective solution for growers in our supply chain."

"Nitricity is committed to producing fertilizer that is optimized for farmers, not factory production or freight distribution," said Nico Pinkowski, co-founder and CEO of Nitricity. "Partnering with Chipotle will unquestionably accelerate our path toward disrupting the industry with climate-smart technology."

Tim McAfee, a Cultivate Next Venture Collaborator and current Chipotle produce supplier noted: "I have visited the facilities of both Nitricity and Greenfield Robotics and am optimistic and enthusiastic about the impact these innovations could have on the growing community."

What's Next for Cultivate Next? 
Chipotle will continue to provide more updates on the Cultivate Next venture fund in 2024 and beyond. Companies interested in collaborating with Chipotle through the Cultivate Next venture fund can apply by emailing [email protected].  

TGI Fridays  announced  the hiring of Ray Risley as U.S President and Chief Operating Officer and Nik Rupp as President of International Markets and Chief Financial Officer. Both will report directly to CEO Weldon Spangler, who was appointed in October.

In the role as U.S. President and Chief Operating Officer,  Risley will be responsible for the supervision and management of the operational facets and performance standards of all TGI Fridays establishments within the United States, encompassing both Company-owned and Franchised entities. Risley joins TGI Fridays after serving as CEO of Via 313 Pizzeria, where he doubled the brand's number of units and successfully positioned the award-winning independent pizza chain for significant future expansion. Prior to that, he was President and COO of Front Burner Society, where he was integral to the growth of the Whiskey Cake Kitchen and Bar concept. Mr. Risley notably spent nearly 20 years in a variety of leadership roles at Del Frisco's Restaurant Group, Inc, including most recently as President of Del Frisco's Double Eagle Steakhouse.

TGI Fridays is also announcing the hiring of Nik Rupp as Chief Financial Officer and President of International. In this role, Mr. Rupp will oversee the financial strategy of TGI Fridays with an emphasis in accounting, finance and capital structure, as well as focus on growth and managing relationships with International franchisees. Mr. Rupp most recently held the role of COO at Papa Murphy's International, subsequent to serving as the company's CFO. Throughout his tenure at Papa Murphy's, he played an instrumental role in driving a clear vision, strategy, and growth for the international pizza company. Previously, Mr. Rupp held leadership positions at esteemed global consumer brands, among them, Specialized, Nike and Converse.

"We have a significant opportunity to lead this much-loved, heritage brand through a revitalized new chapter, and by bringing on Ray and Nik to our leadership team, we are confident in what we can accomplish in the coming year," said Weldon Spangler, CEO of TGI Fridays. "Not only do Ray and Nik have tremendous experience in the restaurant industry that will drive growth for our brand and our franchisees, but their enthusiasm and passion for TGI Fridays will also be a cornerstone to our vision for the company."

This news comes as TGI Fridays continues the revitalization of its brand, including reinvigorating many of its legacy menu offerings. Most recently, TGI Fridays unveiled its most innovative bar menu to date with the launch of its "Claus for Celebration" menu, offering up an incredible 14 new cocktails and mocktails for the holiday season. In addition, the brand revamped its world-renowned appetizers menu and rolled out its new Grilled & Sauced™ platform earlier this year.

With a laser focus on operational excellence and compelling menu offerings, TGI Fridays will continue to execute its growth-oriented business plan focused on revitalizing TGI Fridays. Delivering on "That Fridays Feeling™" has been synonymous with the iconic brand for nearly 60 years.

TGI Fridays operates and franchises nearly 700 restaurants across 51 countries. The company saw total system wide sales of $1.6B in 2022 with same US sales growing at +8% compared to 2019 (pre-pandemic). The company announced its most significant deal in September of last year, consisting of 75 new franchised restaurants to be opened throughout South and Southeast Asia over the next 10 years representing an additional $500MM in restaurant revenue.

Walk-On's Sports Bistreaux, the renowned restaurant and sports bar concept, is proud to announce the appointment of two industry veterans with Tyler Schack stepping in as the Vice President of Technology and  Jamie Davis being named the Vice President of Supply Chain & Procurement.

"We are thrilled to welcome Jamie Davis and Tyler Schack to the Walk-On's family. Their extensive experience and proven track records in their respective fields align seamlessly with our commitment to delivering top-notch experiences for our guests and assembling a high-caliber team to drive Walk-On's to new heights." said Chris Dawson, CEO of Walk-On's.

As the VP of Supply Chain & Procurement, Davis brings over fifteen years of invaluable experience in the Foodservice industry to her role at Walk-On's. Her previous experience includes positions as the VP of Supply Chain & Procurement at Insomnia Cookies, VP of Supply Chain at Edible Brands, Director of Supply Chain at Focus Brands (Cinnabon), and Director of Supply Chain at Tropical Smoothie Café. She's a proven procurement strategist who excels at building scalable distribution networks as a foundation for rapid revenue growth.

WebBeds, a global marketplace providing accommodation ground product distribution services to the travel industry, has partnered with BeCause to provide WebBeds users with certified sustainability data on its hotel partners.
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As a multinational organization, WebBeds recognises the importance of global corporate responsibility and is dedicated to reducing its environmental footprint by promoting environmentally responsible sustainable travel.

WebBeds has partnered with BeCause – a sustainability technology start-up transforming how companies in the hospitality, travel, and tourism industries manage their sustainability data – to scale up the number of properties tagged as ‘eco-certified’ on WebBeds booking platforms.

BeCause will enable WebBeds to automatically match hotels in its database to those with Global Sustainable Tourism Council (GTSC) credentials (currently 49 recognised standards). Individual properties that meet GTSC criteria will receive an eco-friendly identifier on WebBeds' booking platforms, which travel trade partners can use to book hotel stays for the end traveller aligned with their values on sustainability.

Daryl Lee, WebBeds CEO said, “Partnering with BeCause is a key step in our ongoing journey to become a more environmentally responsible business. Our travel trade customers are becoming more conscious about the eco-credentials of the properties they recommend to the end traveller. Working with BeCause helps us to rapidly scale the number of eco-certified properties we provide on our platforms with the assurance that these properties have all been through a rigorous certification process administered by recognised standards authorities."

Frederik Steensgaard, CEO and co-founder of BeCause said, “Without BeCause, marketplaces like WebBeds have to manually perform sustainability checks. This process is expensive, outdated, and error-prone. BeCause eliminates these issues. Not only does automation help speed up and reduce costs, but with our centralised data hub, marketplaces and their users have access to real-time, trustworthy hotel information from recognised sustainability organizations like the GSTC. With more and more travellers putting a premium on eco-friendly travel, enabling this transparency is vital to a marketplace’s business.”