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.
Why Ordering and Loyalty Build a Database of High-Value Guests
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.
- Ordering Fuels Loyalty: We have found that digital guests adopt loyalty at a rate of approximately 50%, which is around 20% higher than our in-store adoption rates. This isn't accidental. We rely on Olo to deliver a seamless experience for online ordering and loyalty. By implementing features like passwordless login, we removed the friction of remembering credentials. Guests are far more likely to opt in when we make it easy for them.
- Loyalty Fuels Ordering: Once a guest crosses that threshold and joins the program, the economics of that relationship change fundamentally. Our data proves that a loyalty member is 5-6x more valuable (in terms of guest lifetime value or GLV) than a non-member. They order more frequently, they respond to incentives, and they drive repeat volume back into the ordering system.
By treating these two functions as a single relationship, we stop chasing individual transactions and start building a database of high-value, recurring guests.
An Existing Network to Accelerate Adoption
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.
- Network Fuels Acquisition: The power of this shared network became undeniably clear when we onboarded Wetzel’s Pretzels. Upon launching, we discovered around a 40% overlap in guests with our existing network (Cold Stone Creamery, etc.). Because these guests were already part of the Olo Loyalty ecosystem, they didn’t need to sign up again. They were "instantly" acquired as known loyalty members for Wetzel's without us spending a single dollar on advertising.
- The right data fuels advertising: This shared identity allows us to be smarter with our marketing. Even if a guest is just a "Starter Member," capturing their phone number allows us to target them more effectively. We can serve ads based on that known identity, driving them back into our ordering funnel. Instead of casting a wide net to unknown audiences, we are engaging people who have already raised their hand, keeping the momentum going across our entire portfolio of brands.
Frictionless Signup to Start the Conversation
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.
- Starter Members Fuel SMS: Because we know that guests who opt-in to SMS have an even higher frequency or GLV, we are focused on initiatives to grow this channel. The simple in-store phone entry will include an SMS opt-in checkbox powered by our partner Infobip. We have added an SMS opt-in screen to our Olo ordering experience and see high acquisition—this year alone we saw a 23% growth in SMS adoption. We aren’t asking for everything up front; we are just asking for a connection.
- SMS Fuels Loyalty Registration: Once we have the phone number and the opt-in, we can nurture that relationship outside the store. Utilizing Infobip’s messaging capabilities, we send automated SMS journeys to these "Starter Members," reminding them that they are earning points and have rewards waiting. This nudges them to fully register their account to redeem those rewards, effectively moving them from passive guests to active, registered users. We also have specific advertising messages targeting these members to encourage them to take the next step to fully register their accounts.
- SMS Fuels GLV: This conversion is critical because the data shows that guests who opted into SMS are estimated to have a GLV 7-8x higher than non-members. By reducing the friction at the start, we open the door to our most valuable communication channel.
Continuing to Innovate with Rich Communication
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.
