A new guest trying your restaurant? Great. That guest turning into a repeat customer? Even better. 

Converting one-time visitors into devotees is *chef’s kiss* for restaurant marketers, but these days you might need more than just delicious food to make that happen. A loyalty program can be the boost needed to make this happen. According to a Popmenu study, 72% of restaurants will provide more special offers and rewards in the coming year, and 68% will invite guests to join their VIP list.

If you’re looking for a straightforward way to increase repeat visits and boost guest spending, all while capturing that ever-important customer data, consider implementing a loyalty program at your restaurant. 

Here, we answer all of your questions about loyalty program basics, the benefits of points-based systems specifically, and how to get started at your establishment. 

What are restaurant loyalty systems?

‍Simply put, a loyalty program is a structured way to incentivize guests to repeatedly visit your restaurant and reward them for their continued business. Often these systems offer points, credits, or “stamps” based on an amount spent or quantity ordered. After a certain threshold is met, the guest receives discounts, perks, or free items. 

What’s a points-based system and how does it work? 

A points-based program is the most common type of loyalty system, which rewards a guest with points when they spend money at your restaurant. Once a specifically defined number of points are earned, they then convert into a reward. 

Here’s an example of how that could work: A guest earns 1 point for each $1 spent. After spending $500, that guest would earn 500 points, which translates to $20 in rewards. In this example, you’re giving guests 4% back, which then encourages them to return to your restaurant to redeem their reward, thus spending more money and starting the loyalty cycle. 

How do loyalty systems work for restaurants?

A restaurant loyalty system needs to operate across all ordering channels. So whether a guest is placing an online order via your website, standing in line at the register for takeout, or paying for their dine-in check at their table, the reward system works the same and is equally weighted no matter the ordering method.

A typical system is set up so that points are tied to a unique guest identifier, such as their email, phone number, or account ID. When the guest places their order, they are encouraged to submit this information directly, via an app or by using a loyalty card. Once the order is placed, points are calculated based on total spend and added to their account. If the customer has reached the point of earning a reward, that reward can be applied while completing the transaction. 

What are the benefits of a restaurant loyalty system?

The main perk of a loyalty program is literally in the name: it creates guest loyalty by giving them an additional incentive to come back to your restaurant, try new things, and spend more money. If a customer is choosing between your restaurant and the competitor down the street, but they know they’re just $5 away from a reward, that’ll be the extra push they need to choose you. 

What’s more, once you’ve gotten them back through your door (virtual or real), they’ll be more likely to spend a little extra dough if that helps them reach their next reward goal. Or they may bring a friend or two who sign up for your loyalty system, bringing a new set of loyal guests into the mix. 

The cherry on top of the loyalty system sundae is that these programs serve as yet another way to collect valuable contact information from your guests, which is data that can then be used to inform your future marketing efforts. And that’s exactly what you want to do to stay competitive: Popmenu’s study found that On average, restaurants are adding more than 100 new guest contacts to their email lists every month to fuel ongoing marketing. 

What features should a restaurant loyalty system have?

If you want a top-tier loyalty system, you need to seek out software that offers three specific features. 

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1. The ability to adjust points earned per dollar spent, so you have the flexibility to increase or decrease earn rates as needed, run promotions that change the value of points, or give more points when premium items are purchased. 
2. The power to export and import members from other loyalty systems without losing any earned points. If your restaurant switches platforms, you’ll still be able to export all guest accounts, retain their point balances, and seamlessly import them into your new system without any downtime or reboot.
3. Capabilities to connect online and in-person orders, so guests can earn and redeem points the same way no matter how they choose to patronize your restaurant.

The goal is to create a frictionless experience for your guests while giving your team the freedom to make adjustments without any disruption to the system. 

How do you get the most out of your restaurant’s loyalty system? 

You can’t create a program and assume it’ll be a success without creating a personalized marketing strategy to both promote it and keep it top of mind. This could include marketing texts and emails to your existing customer database announcing the system’s implementation and encouraging participation. Or use the data you’ve garnered from current loyalty program guests to deliver personalized communications celebrating birthdays, thanking them for their loyalty, or sharing a “we miss you” message. 

You can also put your staff to work by training them to tease the program in person either by inviting guests to sign up as they’re paying their bill or reminding them it exists and the value of redeeming points. Consider incentivizing staff to garner sign-ups by awarding them gift cards or bonuses if they secure a certain number of enrollments. 

The gold standard in restaurant ROI

A good restaurant loyalty system not only provides short-term rewards, but also creates a long-term relationship between the restaurant and its guests. And when putting the power of smart, personalized marketing behind your loyalty program, you’ll turn what could be a simple promotion into one of the most impactful investments you can make in your restaurant. 

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