IHOP opens International Bank of Pancakes with sunny influencer push

The brand's first loyalty program — which doles out crypto-inspired PanCoins — is supported by creators known for their sense of joy.

What happened

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Why it matters

IHOP is taking an influencer-led approach to touting its first loyalty program. Prioritizing social media and creators suggests the chain is trying to reach a younger crowd of consumers that have drifted away from casual dine-in experiences. Cryptocurrencies, the obvious point of reference for PanCoins, have also seen steadier traction with groups like millennials and Gen Zers that are more receptive to digital banking and personal finance.

Notably, PanCoins aren't actually a cryptocurrency based on the blockchain. Instead, they represent a "digitized" pancake, where one coin carries the value of a single real-world flapjack. Spending $5 at IHOP earns a PanCoin, and three coins can be traded in for a short stack of pancakes. Acquiring more coins unlocks further rewards on the "Stack Market," while customers who sign up for the loyalty program can access other perks like free pancakes on their birthday, secret menu offerings and the ability to pay from the IHOP mobile app. IHOP opened early registration for the program in March but it formally goes live today (April 11).

IHOP joins a number of restaurant chains that are putting fresh focus on mobile channels and loyalty at a transitional point for the industry. The pandemic has accelerated consumer adoption of mobile and digital ordering, pushing brands in the category to reassess their marketing, operations and even store designs.

This news brief is based on reporting published by Marketing Dive on 2022-04-11. The original report is linked below.