A View From The Top
Why Jamba's future is digital
Jamba President Geoff Henry reveals the strategy behind the chain's double-digit jump in digital sales.
May 6, 2021
By Geoff Henry, president, Jamba
When Jamba joined Focus Brands, we developed a clear strategy to transform the brand to better serve a broad range of guests. It was critical to evolve our menu and introduce more plant-based and lower sugar options, and importantly, we recognized the value and need of digital investment to make the brand more accessible and convenient.
That to say, a digital progression within the entire foodservice has been in the works for several years, and the pandemic has forced foodservice industry leaders to fast-track implementation of virtual strategies to meet changing consumer preferences. Even as we progress towards a full reopening across the country, off-premise dining and digital ordering will remain critical elements for any brand looking to maximize success.
While we've always focused on off-premise at Jamba, we've more recently dug our heels into building brand accessibility and will continue to identify ways to make it easier for our guests to eat and drink. Digital is playing a huge role in making our brand more accessible. As part of our brand relaunch, we introduced a new mobile app with the My Jamba Rewards loyalty program integrated, along with an updated e-commerce website and expanded partnerships with third-party aggregators. These enhancements helped our brand navigate pandemic complexities and as a result Jamba has enjoyed a double-digit jump in digital sales, growing from roughly 2% to over 20% of total sales in less than 15 months. Our rewards program recently surpassed the 2 million member mark as well, and we'll continue to focus our growth in that area.
In a matter of weeks, the pandemic accelerated what we thought would take a couple of years to successfully get off the ground. The importance of digital is clearer now than ever — and essential to brand success going forward. In fact, recent industry reports predict digital sales will comprise 54 percent of limited-service business in the next years.
So, how can the restaurant industry prepare for future digital demand?
Evolve your menu
Jamba offers a great product, delivered with a positive and efficient service experience — factors that are critical for an on-the-go brand. Our menus fit naturally with digital and off-premise ordering. At Jamba, we saw increased digital demand for our smoothies, juices and bowls, but if we're going to continue growing our business in the off-premise space and make our brand more accessible to guests, there is still space to meet our guests where they need and want us.
To further showcase our commitment to building brand accessibility and meet shifting guest demands while also complementing our existing menu, we recently introduced a new food menu with items perfect for breakfast or a mid-day meal that features a partnership with IMPOSSIBLE Foods. By adding more options that appeal to morning consumption, we are already seeing increasing demand during the morning daypart.
Our app will play a critical role in increasing morning consumption as it affords our guests more accessibility via delivery or order ahead as our guests need an efficient way to order and enjoy a meal on-the-go. These menu items pair perfectly with our existing smoothie line-up, providing a well-balanced meal with a smoothie and sandwich combo. Importantly, we removed more skus from the store than we replaced with the new food launch. We are already seeing success by selling a higher volume, even with fewer skus on the menu. This important menu evolution is a simple step that delivers big results while having minimal operational impact at the store level.
Continue to evolve your menus and think outside of the box. Adding items that allow you to partake in different dayparts, ensuring your menu meets guest demand and having digital technology that helps you solve a guest need will give you the ammunition to remain relevant.
Build a loyal following
Customers want to be recognized by the brands they frequent. Rewarding your guests for their allegiance can help separate your brand from competitors, while also making your guests feel valued. Guests that feel a sense of loyalty to a brand are no longer just influenced by price or accessibility, but rather by the level of service and product quality.
Digital platforms and mobile ordering have also enabled us to personalize our communication with each loyal customer, while making it easier and more convenient to earn and recoup rewards. A quick one or two-touch process with a friendly interface can increase the likelihood of loyal guests and help ensure digital success with repeat ordering. We have a guest segmentation approach that is getting smarter month over month; we can reach our guests with relevant offers and rewards that get them to try new products or consider coming one more time per week or month.
Making digital interaction more personalized and learning guest preferences, as well as how they want to interact with your brand will build your loyal customer base. Use digital to your advantage and get creative on ways to customize the experience. Your loyal guests will thank you.
The importance of convenience and accessibility
As we continue to maneuver through the pandemic and forecast the future of foodservice, we'll need to consider how we use fast-tracked digital processes to benefit us even as in-person guest interaction returns. We know that contactless ordering and touchless payments have become an option guests expect and we'll need to continue to invest in the right platforms, including the continued evolution of our My Jamba Rewards app, online ordering processes and both first and third party delivery options.
The majority of our first party order ahead transactions are for in-store pick up. In the months ahead, we will be putting even more emphasis on driving awareness that guests can order from the Jamba app and pick up in store OR have it delivered. We have a lot of upside growth in first party delivery and will be launching a number of initiatives to drive awareness and trial of this convenience.
How do we move forward?
Guests desire for convenience and accessibility is going to increase. Most younger guests are looking for frictionless transactions. Some of our guests want this experience now, and some don't. Some want to walk up to the counter and engage with a team member at the register (even if they are a regular and come multiple times a week). And that is great! We need to meet our guests where they are and deliver a positive experience—whether that is leaning in to digital or superior in-person service.
The digital space is constantly changing and evolving, and we are committed to making timely and relevant changes to our experience to better serve our guests, wherever they are on their wellness journey.
