Ordering and loyalty as a guest acquisition engine
A network advantage that jumpstarts growth
Low-friction entry points that open the door
At Kahala Brands, managing the digital ecosystem for 28 different concepts- including Cold Stone Creamery and Wetzel’s Pretzels—requires more than just a collection of software tools. It requires a philosophy of compounding value.
For a long time, the industry treated digital ordering, loyalty programs, and marketing communication as distinct functions. However, we have found that viewing them as separate lanes misses the bigger opportunity. It is not just that these systems feed into one another; they actively play into one another, making each component stronger. Online ordering becomes an acquisition engine, while loyalty data sharpens the ordering experience.
The strategy is simple: we don’t just want orders; we want data. And we don’t just want members; we want active participants. By tightly integrating our ordering foundation with a flexible loyalty network and a robust SMS strategy, we are creating a flywheel where each interaction increases the value of the next. Here is how we are building that momentum.
Online ordering is often viewed strictly as a sales channel—a way to facilitate a transaction. However, we view it as another acquisition engine. When a guest orders digitally, we have a natural opportunity to capture their identity that simply doesn't exist in the same way during a quick, over-the-counter transaction.
This dynamic creates a powerful feedback loop where ordering drives loyalty, and loyalty, in turn, accelerates ordering frequency.
By treating these two functions as a single relationship, we stop chasing individual transactions and start building a database of high-value, recurring guests.
One of the most overlooked advantages of a modern loyalty partner is the power of a shared identity network. Typically, when you launch a loyalty program for a new brand, you are starting from zero. But because we partner with Olo Loyalty, we are not building a database from scratch; we are tapping into an existing ecosystem of 40 million active users.
This network effect dramatically accelerates acquisition, allowing our brands to grow by leveraging each other’s success.
The biggest barrier to loyalty adoption in a physical store is time. Guests want their ice cream or pretzel; they don’t want to fill out a form at the register. We solved this friction with the Olo Loyalty "Starter Member" concept. This allows guests to join at the point of sale (POS) by simply entering a phone number, lowering the barrier to entry and immediately capturing a reachable data point.
This low-friction entry point kicks off a second critical cycle centered on communication and conversion.
While standard SMS has been a powerful driver for us, we are already looking at the next frontier of engagement: rich communication services (RCS). Today, most SMS marketing relies on simple text and shortened links. It works, but it takes the guest out of their native messaging app and forces them into a browser.
We plan to change that dynamic in 2026. The vision is to move beyond static text to create immersive experiences directly in the messaging stream. Imagine a guest receiving a message not just with text, but with high-quality images of our newest flavor, an interactive "Order Now" button, or a carousel that lets them browse menu items—all without leaving their text message inbox.
This isn't just about aesthetics; it is about shortening the path to purchase. By turning SMS into a direct ordering interface, we aim to increase conversion rates, not just open rates. Innovation in this space works to remove steps between the guest’s desire and the completed order.
Building a digital strategy for nearly 30 brands has taught us that technology partners cannot just be vendors; they must be strategic allies. When we evaluate partners like Olo, we aren't just looking for a specific feature set. We are looking for enterprise-level platforms that prioritize innovation and transparency. We need partners who are willing to build roadmaps with us, ensuring that our wins are shared.
The shift from 1% to 25% digital sales didn't happen by accident. It happened because we stopped looking for silver bullets and started building ecosystems. When you integrate your ordering, loyalty, and messaging strategies, you stop fighting for every single transaction. Instead, you build a self-sustaining engine where every input—whether it’s a phone number at the register or a digital order online - compounds the value of the next.
Transform your guest experience today.