Bloom Café Case Study
GiftAMeal conducted a 17 month case study with Bloom Café from September 1, 2018 to January 31, 2020. To measure GiftAMeal’s impact on customer behavior, transactions from Bloom Café were split into two groups: customers that used GiftAMeal and customers that did not.
Square, the point-of-sale system for Bloom Café, collected detailed transaction data for each customer that paid with a credit card including: date/time of transaction, gross revenue, tip size, and customer name on the credit card used.
The names on the credit cards were then matched to the names of GiftAMeal user accounts, and the transactions were validated using the date/time of the credit card transactions and the date/time the photos were taken on GiftAMeal.
Check Size, Visit Frequency, and Tip Size
The 424 customers that used GiftAMeal, on average: spent 25% more per transaction, returned 20% more frequently, and tipped 34% more than their counterparts who had not used GiftAMeal.
Incremental Revenue and ROI
The 424 customers using GiftAMeal in total spent $15,673.32 at Bloom Café during the 17 months of transaction data available for analysis. On average, that’s $921.96 in revenue from GiftAMeal customers per month.
To calculate incremental revenue created by GiftAMeal, the 25% increase in check size and 20% increase in visit frequency was applied to the typical customer. Results showed an average of $284.36/month in incremental revenue created by GiftAMeal, for a total of $4,834.13 in incremental revenue over 17 months.
To calculate return on investment (ROI), the incremental revenue was divided by the cost of participating in GiftAMeal’s program ($49/month), producing a 5.8x ROI.
Finally, transactions by customers that used GiftAMeal were segmented into two new groups: transactions before each customer’s first use of GiftAMeal at Bloom Café and those after. Once a customer used GiftAMeal, on average, check size grew 6%, tip size grew 25%, and visit frequency grew 42%.
This indicated that the simple act of using GiftAMeal to 'give back' by taking a photo was actually a catalyst for growth in check size, tip size, and visit frequency.
“We have had a great experience with GiftAMeal. Bloom Café is happy to join in the fight against food insecurity. Moreover, this partnership has paid dividends for our business. Our customers like supporting a good cause. Thanks, GiftAMeal!”
Senior Director of Bloom Café
Delicious brunch, drinks a plenty, and a great cause, what more could you ask for?
Good latte while waiting for soup on a fall day
Lovely lunch with new friends!
Enjoying a delicious breakfast at Bloom Cafe and donating a meal
to someone in need!
Brunching at bloom!!! So fun and friendly... ps those peach turnovers....omg.
pounds of food
*Data analysis led by Eric Failes, Washington University in St. Louis PhD in Cognitive Psychology