Gen Zs turn to loyalty rewards, digital content when choosing QSRs: report

High-smartphone cities like Canberra, Melbourne, and Sydney are driving growth in digital-first strategies.

Loyalty programmes and digital content are shaping Gen Z’s dining habits in the quick service restaurant (QSR) sector, a recent YouGov report found.

The report, From Likes to Loyalty: Winning Gen Z in Quick Service Dining, finds that 29% of Gen Z respondents say loyalty rewards or discounts influence their choice of restaurant, compared with 23% of the general population.

Overall, 77% of those surveyed said loyalty programmes are an effective way for brands to reward customers and encourage repeat visits.

In addition to incentives, short-form, visually engaging video content is emerging as a key way for QSRs to capture attention.

Amongst Gen Z respondents, 79% prefer short videos or reels, followed by long videos (63%), livestreams (39%), and video podcasts (37%).

Technological changes and the rise of digital platforms are reshaping the Australian QSR sector.

A report from IMARC indicates that digitalisation is one of the strongest drivers of market growth, as QSRs invest in mobile apps, order customisation, contactless payments, and loyalty schemes to improve customer experience and operational efficiency.

Cities with high smartphone penetration, such as Canberra, Melbourne, and Sydney, are seeing particular growth in digital-first strategies.

Restaurants are using app-based tools to monitor customer preferences, offer personalised promotions, and integrate digital wallets and gamified rewards, particularly appealing to younger diners in high-tech cities such as Canberra and Sydney.