How Breadfast, a Leading YC-Backed Grocery App, Built a High-Impact Loyalty Program

Introducing Breadfast

Breadfast is an Egypt-based online grocery delivery service that operates on a vertically integrated supply chain, supplying groceries, baked goods, and household essentials. The company provides a selection of over 7,000 SKUs, including freshly baked bread, coffee, fruits, vegetables, dairy, meat, and consumer packaged goods.
Founded by Mostafa Amin, Muhammad Habib, and Abdallah Nofal in 2017, Breadfast began as a bakery delivery service and has evolved into a full-scale quick-commerce platform delivering products in under 60 minutes. The company operates 30 fulfillment centers and has raised $39.1M from investors including EBRD, Novastar Ventures, Endeavor Catalyst, and Y Combinator.

Challenges

The primary challenge for Breadfast was to utilize their vast customer base to drive two specific, high-value outcomes:

• Ensuring customers returned to the app repeatedly after their initial use. in a highly competitive market
• Build customer loyalty without eroding already thin margins through excessive discounting
• Strategically incentivize purchases of private label products to improve unit economics
• Create a loyalty program that works seamlessly across their native mobile apps (iOS and Android)

Solutions

In July 2022, Breadfast partnered with Gameball to deploy a comprehensive loyalty solution tailored to their unique business model. The implementation went live in November 2022 and has been continuously expanded since.

Strategic Points Earning with 2x Multipliers

One of the most innovative aspects of Breadfast's loyalty program is their use of "2x Points" to strategically drive sales in specific categories—most commonly their private label products. This approach turns the loyalty program into a merchandising tool, steering customers toward higher-margin items without explicit discounting.

Margin-Protecting Redemption Mechanics

Rather than offering straight cashback (which would erode margins), Breadfast controls their points and redemption system to direct customers toward rewards that minimize financial impact. This includes non-financial rewards, experience-based perks, and carefully structured redemption catalogs that maintain profitability.

Native Mobile App Integration

Gameball's rewards program is fully integrated into Breadfast's native iOS and Android apps, creating a seamless experience for users. Customers can see their points balance, track progress toward rewards, and complete challenges directly within the app they're already using to place orders.

Badges & Challenge Board

Breadfast implemented a comprehensive Challenge Board with collectible badges that reward specific behaviors. Each badge awards bonus points and creates a game-like experience that drives engagement beyond simple transactions:

• Breadfaster! (100 pts) - First order milestone
• Breadaversary! (100 pts) - Anniversary celebrations
• Helpful Critic! (200 pts) - Leave product reviews
• Holistic Shopper! (250 pts) - Multi-category orders
• The Explorer! (300 pts) - Try new product categories
• Veteran Bill Payer! (1,000 pts) - Breadfast Pay integration

Frictionless Redemption Methods

Breadfast offers two seamless ways for customers to redeem their points, maximizing convenience while protecting margins through a curated reward catalog:

1. Dedicated Redemption Catalog: Customers browse a rewards catalog featuring free products (chocolates, tissues, bakery items) and free shipping. Redeeming generates a promo code valid for 180 days.

2. In-Checkout Redemption: A "Show Rewards" option appears directly at checkout, allowing one-tap redemption without leaving the purchase flow. This frictionless experience drives higher redemption rates.

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Why it worked

The program worked because it transformed a functional necessity (grocery shopping) into a rewarding game, providing motivation beyond simple discounts:

• Sticky Engagement: Missions and badges created a "sticky" experience, giving customers ongoing goals and reasons to return and check their progress, which directly addressed the core retention challenge.
• Behavioral Nudging: By using 2x points campaigns on private label products, Breadfast turns loyalty into a merchandising tool. Customers feel rewarded while the business improves unit economics—a true win-win.‍
• Tangible Value: The ability to earn points on every order and then redeem them for free shipping, discounts, or free products gave the customer a tangible, evolving benefit that consistently drove repeat purchasing.‍
• Margin Protection: The strategic approach to redemption—controlling cashback, offering Breadfast Coffee Rewards, and directing customers toward non-financial benefits—protects Breadfast's thin margins while still delivering meaningful value to customers.‍
• Seamless Integration: Native mobile integration means the loyalty program feels like a natural part of the Breadfast experience, not a bolted-on afterthought. This drives engagement and reduces friction in the customer journey.

The results

The partnership between Breadfast and Gameball has delivered significant business impact across customer engagement and retention:

Increased Retention and Repeat Purchases

According to Breadfast's Growth Lead, Ingy Hashish, the most valuable outcomes achieved through Gameball have been "retention and increased repeat purchases." The loyalty program has become central to Breadfast's customer experience strategy, supporting their mission of delivering exceptional customer experiences and cultivating long-term loyalty.

Driving Multi-Category and Repeat Purchases

The top-performing campaigns are designed to drive repeat purchases and basket diversification. Challenges like "orders including Bakery items" and "orders including multiple categories" directly increase order frequency and average basket size—key metrics for grocery delivery profitability.

Massive Customer Engagement

Breadfast's loyalty campaigns have driven extraordinary participation. The anniversary challenge and first order challenges have engaged hundreds of thousands of unique customers—demonstrating the program's power in both acquisition and long-term retention.

Digital Payment Adoption

The "Pay by Card" campaign has successfully driven adoption of digital payment methods, supporting Breadfast's fintech ambitions with Breadfast Pay and reducing cash-on-delivery operational costs.

The takeaway

Breadfast's partnership with Gameball demonstrates that loyalty programs in thin-margin businesses don't have to be a race to the bottom. Through strategic design—using gamification to drive behavior, controlling redemption to protect margins, and integrating seamlessly into the customer journey—companies can build genuine customer loyalty while maintaining profitability.
With industry-leading customer retention and a loyal, engaged user base, Breadfast proves that the right loyalty strategy can be a genuine competitive advantage—even in the most challenging markets.