Untapped Profit Potential in Restaurant Gift & Loyalty Programs

Never underestimate the power of a good loyalty program. 

What made customers suddenly crave restaurant rewards? 

According to PYMNTS, “Consumers’ interest in loyalty programs skyrockets after signing up for one. Fifty-seven percent of restaurant customers who use one such program say they would spend more on food orders from other restaurants if those restaurants provided their own programs.”

Many chain restaurants and retailers ramped up their restaurant reward programs during the 2020 pandemic to encourage customers to keep shopping. Therefore, we can conclude that customers were looking for their favorite local restaurants to follow suit. And if they didn’t, customers were more inclined to place orders that would be rewarded.

This brings us to another compelling statistic from a PYMNTS study.

“Fifty-four percent of table-service restaurant customers who are not signed up for at least one loyalty program say it is because their restaurants do not offer them, as do 40 percent of quick-service restaurant (QSR) customers who are not signed up. This works out to roughly 53 million table-service restaurant customers and 30 million QSR customers whom restaurants could add to their loyalty lists if they only had one.”

And there it is – our untapped profit potential.

There are quite literally millions of customers out there who want to be loyal customers to their favorite restaurants. They want to know about menu changes, receive invitations to special events, take advantage of 2-for-1 deals, and much more. But they can’t because their restaurant doesn’t offer a loyalty program.

These customers might keep supporting the restaurant anyways, or they might choose to switch to one that offers a similar concept AND rewards loyal customers.

Here are three things you can do right now to retain these customers and attract new ones!

Get to Know Customer Personas

An early 2021 restaurant rewards study offers a closer look at typical restaurant consumers and how their demographics affect their ordering habits.

A census-balanced panel of 2,079 United States restaurant consumers were surveyed and three key personas were identified from the study: Restaurant Enthusiasts, Convenience Diners, and Occasional Diners. To offer your customers a loyalty program that will suit their needs, you first need to pinpoint where they are on this persona spectrum.

Restaurant Enthusiasts are customers who order from sit-down restaurants or quick-service restaurants (QSRs) at least twice per week. In the study, millennials and bridge millennials (born between 1978 and 1988) were found most likely to be Restaurant Enthusiasts.

Convenience Diners are customers who order from all types of restaurants but are most likely to place quick-service orders twice per week. In the study, 19% of these diners said online ordering options would convince them to increase their meal budgets.

Occasional Diners are customers who order from either sit-down or quick-service restaurants infrequently. In the study, 21% of these diners said the availability of loyalty and rewards programs would convince them to increase their meal budgets.

Keep in mind these aren’t the only options. You may find other personas related to your specific restaurant concept, and that’s okay! Just make sure you identify what your customer personas are, and what is most important to them. This will help you determine what your restaurant can do to encourage them to dine with you more often.

Develop a Custom Loyalty Program

This doesn’t have to be complicated, if you partner with the right provider.

We always recommend Electronic Merchant Systems (EMS) for your restaurant loyalty program needs! EMS offers many different software options and configurations to help you engage and grow your current customer base. Plus, their loyalty cards can double as gift cards!

The in-house creative professionals at EMS will work with you to design a card that is consistent with your brand. To learn more about a gift & loyalty program with EMS, click here. 

Market Your New Loyalty Program

Once your program is in place, spread the word! Here are a handful of ideas to help you create more effective restaurant marketing to inform customers about your new offering:

1. Add head-turning signage to your front window.
2. Announce the new program on your website.
3. If you have customer email addresses, send them an announcement email.
4. Create promotional table tents to place on each dining table.
5. Design a menu insert or card that your host staff can hand to each customer when seating.
6. Encourage staff members to ask customers if they have signed up for your new loyalty program.

These are just a few of the simple ways to grow awareness of your new loyalty program. Don’t forget, you can also use social media and other free online tools to post frequent reminders and updates. 

Tap Into New Profit Potential

Are you ready to grow your restaurant business by offering a unique loyalty program? New customers and revenue-boosting opportunities await you! To get started, head over to Electronic Merchant Systems’ website and read about their custom gift & loyalty card options or request more information. 



Sources: PYMNTS, PYMNTS