Thanks to well-designed loyalty programs, restaurant brands from a range of market segments have found success in enhancing customer retention, boosting repeat business, and increasing average check levels.
Though they may take different forms, restaurant loyalty programs are a fantastic way to gain an edge in a competitive market and add to margins that are always under pressure.
Here's a breakdown of what loyalty tools can do, how they work, some popular examples, and tips for creating your own.
What a Business Has to Gain from Increased Loyalty
Before we dive into the details, here’s a quick reminder of how loyalty programs directly impact the bottom line of any business and restaurants in particular.
Increased Customer Retention
Loyalty programs incentivize repeat visits, fostering a dedicated customer base. In a sector that offers customers so many options, even a modest increase in retention can pay major dividends.
Higher Spending
Loyalty program members often spend more per visit to earn rewards, boosting average transaction values. Their more frequent visits create more opportunities for upselling and discovering higher-margin menu items.
Customer Data
Digital insights into customer behavior and preferences can be leveraged into customized offers with a greater chance of redemption.
Enhanced Customer Experience
Personalized rewards and recognition make customers feel valued, improving overall satisfaction.
Types of Restaurant Loyalty Programs
A restaurant loyalty program rewards customers for their repeat patronage, encouraging them to return more frequently than they otherwise would. These programs can take various forms, each tailored to fit the restaurant's unique brand and customer base. Common program formats include:
- Point-Based Programs
How it works: Customers earn points for every dollar spent and redeem them for rewards
Best for: Restaurants with frequent visitors or high transaction volumes
Example: Earn 1 point per $1 spent, redeem 50 points for a free drink
- Punch / Stamp Card Programs
How it works: A physical or digital card is marked after each purchase. After a set number of purchases, customers get a free or discounted item
Best for: Quick-service restaurants, coffee shops
Example: Buy 10 coffees, get 1 free
- Tiered Programs
How it works: Rewards increase as customers spend more or reach higher tiers
Best for: Full-service restaurants with varying customer spending levels
Example: Spend $50 for 5% off, spend $100 for 10% off and exclusive offers
- Subscription-based Programs
How it works: Customers pay a recurring fee to access exclusive benefits like free delivery, special discounts, or complimentary items
Best for: Chains with high-frequency users
Example: Monthly coffee subscriptions offering unlimited refills
- Gamified Programs
How it works: Customers engage with games, challenges, or contests to earn rewards
Best for: Restaurants with younger, tech-savvy audiences
Example: Spin a digital wheel to win prizes, participate in Trivia Night for loyalty points
- Casback Programs
How it works: Customers receive a percentage of their spending back as credits for future visits
Best for: Restaurants with high competition or price-sensitive customers
Example: Spend $100 and get $10 back in rewards
- Partner Programs
How it works: Collaborate with other businesses to offer joint rewards or benefits
Best for: Restaurants in urban or high-traffic areas
Example: Redeem points for discounts at a local gym or cinema, etc.
- Social Media-Based Rewards
How it works: Customers earn rewards by engaging with the restaurant on social media (likes, shares, reviews)
Best for: Trendy, Instagram-friendly restaurants
Example: Post a photo tagging the restaurant and get 10% off.
Each of these has unique strengths and is best suited for different types of restaurants and customer bases. The ability of loyalty programs to easily adapt to different formats and implementations is among their many benefits.
Designing Your Own Custom Loyalty Program
Loyalty platforms like TRIFFT offer a high degree of customization when designing programs to fit a range of restaurants and market segments. The better the personalization, the better the results and the ability to create tailored loyalty solutions is at the top of the list of features that any restaurant marketer should look for.
Here are some of the most important things to consider when designing the ideal loyalty solution for a restaurant and its clientele:
Keep it simple
Keep the concept and path to rewards easy to understand. A straightforward program encourages participation and reduces confusion. Make it easy for customers to understand how to earn and redeem rewards.
Offer valuable rewards
Give customers a reason to be interested in what they have to gain. Provide incentives that are meaningful to them, such as exclusive menu items or significant discounts. A program that lacks incentives that truly appeal to your target audience will not get the results you want.
Promote your program
If they don’t know about it, they can’t join. Make sure customers are aware of your loyalty program through in-store signage, your website, social media, and email marketing. Use staff engagement to inform customers about the program and its benefits.
Use Technology
Customers expect and are comfortable with tech-based brand interactions. Leverage mobile apps and online ordering platforms to streamline enrollment and reward redemption. Implement digital platforms for easy tracking and redemption of rewards, enhancing the customer experience.
When developing your own restaurant loyalty program, always be guided by the need to align it with your brand’s identity. Ensure the program reflects the way your customers feel about your restaurants and always keep the needs and preferences of your target audience in mind.
Get Inspired By These Successful Loyalty Programs
The biggest brands in the business recognize the value of loyalty programs but you don’t need to operate on the same scale to join in. Some or all of these might be familiar to you and you can start your own version with TRIFFT today!
- Starbucks Rewards
Why it works: Easy to understand and offers tangible rewards (free drinks, food). The app integration makes earning and redeeming points seamless.
Key takeaway:Make your program accessible and user-friendly with a strong digital component.
- Chick-fil-A One
Why it works: A tiered system that rewards frequent customers with increasingly better perks. The app experience is top-notch, with personalized offers and easy ordering.
Key takeaway:Reward your most loyal customers with exclusive benefits to keep them coming back.
- Panera Bread’s MyPanera Unlimited Sip Club
Why it works: Caters to their coffee and tea-loving customer base with a subscription model that offers unlimited drinks and other perks for a monthly fee.
Key takeaway: Consider a subscription model if you have a product or service that customers purchase frequently.
- Chipotle Rewards
Why it works: Gamification! Chipotle makes earning points fun with challenges and surprises, keeping customers engaged.
Key takeaway: Don't be afraid to get creative and make your program fun and engaging.
- Domino’s Piece of the Pie Rewards
Why it works: Simple, points-based system with a clear reward structure (earn points towards free pizza). Strong online ordering integration encourages digital engagement.
Key takeaway: Focus on your core offering and make it easy for customers to earn rewards on what they love.
Again, you don’t need thousands of locations like these brands to leverage the power of loyalty programs. Many smaller chains or independent restaurants have successful loyalty programs. Look for those in your area and see what they're doing.
Ultimately, the "best" program depends on your specific restaurant and target audience. Analyze what your customers value most and design a program that rewards their loyalty effectively.
Start Your Restaurant Loyalty Program With TRIFFT
By strategically designing and implementing a loyalty program that resonates with your customers, your restaurant can develop stronger relationships, encourage repeat visit and ultimately drive sustained growth.
TRIFFT empowers you to create a true loyalty program that not only rewards your customers but also enhances your brand while driving more visits from more customers, more often.
With TRIFFT, you get all the powerful, customizable tools you need to get started and build your own loyalty program. No special tech skills needed, no long road to launch and no complex system to manage — just an instant upgrade to your marketing toolbox and an effective, proven method for creating repeat visits in a hyper-competitive market.