Kura Sushi has updated its loyalty program, introducing a three-tier membership structure to replace its legacy point-based program. The chain joins other brands, such as Charleys, Panera, and Tropical Smoothie Cafe, in adopting this model.
The new tiers offer members more flexibility in redeeming rewards, with options including a $5 reward or free side for 500 points, and free select noodles for 1,000 points. Customers earn points on dine-in purchases and orders placed in the app or online, with the amount of points earned ranging from 10 to 12 depending on the tier.
Charlie Nguyen, digital marketing and strategy manager at Kura Sushi USA, stated that the updated program aims to put the power of choice in guests’ hands. Nguyen said, “By introducing dynamic, competitive tiers and giving members total flexibility over their points, we’re delivering real value based directly on what our superfans told us they wanted, while adding an raised aesthetic to the interface that makes navigation more enjoyable.”
Kura Sushi has faced significant impacts from tariffs, which have increased costs. During the fiscal third quarter, costs of goods sold as a percentage of sales was 200 basis points higher than last year, according to Hajime Uba, president and CEO of Kura Sushi. However, they maintained operational discipline, which helped offset much of this impact and improved restaurant-level margins by 90 basis points compared to the prior year.
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Kura Sushi’s average checks are growing faster among members versus non-members, executives said during a July earnings call. The updated loyalty program could help boost these checks further, as well as improve traffic and sales. They are working toward improving margins and returning to their historical 20% restaurant-level operating margins.
Outside of the new tiers, Kura Sushi also updated its legacy welcome offer, replacing 300 bonus points with an instant free soft drink reward for new member signups. This change, along with the updated loyalty program, aims to increase customer engagement and drive sales.
Hajime Uba noted that the chain’s efforts to improve margins are ongoing. Kura Sushi will continue to focus on operational discipline and improving sales to achieve its goals.
