How to Build a Restaurant Loyalty Program?
To build a successful restaurant loyalty program: 1) Choose digital over paper punch cards, 2) Offer points or visits-based rewards, 3) Make rewards attainable (5-10 visits), 4) Include birthday and VIP perks, 5) Promote at every touchpoint, and 6) Track results and adjust. Digital loyalty programs increase order frequency by 20-35%.
In This Article
Quick Answer
Types of Restaurant Loyalty Programs
Digital vs Paper: Why Digital Wins
Designing Rewards That Work
Implementation Checklist
Promoting Your Loyalty Program
Measuring Success
Quick Facts
Related Questions
More FAQs
Quick Answer
Loyalty programs are one of the most effective ways to increase customer retention and spending. Done right, they can transform occasional visitors into regulars who order frequently and spend more per visit.
Types of Restaurant Loyalty Programs
Choose the structure that best fits your restaurant:
• Points-based: Earn 1 point per dollar, redeem for rewards
• Visit-based: 10th visit free (classic punch card, digitized)
• Tiered: Bronze/Silver/Gold with increasing perks
• Subscription: Monthly fee for ongoing benefits
• Hybrid: Combine points with tier-based perks
Digital vs Paper: Why Digital Wins
Paper punch cards are outdated. Here's why digital is better:
| Factor | Paper Punch Cards | Digital Loyalty |
|---|---|---|
| Lost/Forgotten | 50%+ loss rate | Always in phone |
| Customer Data | None collected | Full purchase history |
| Marketing | Impossible | Targeted campaigns |
| Fraud Risk | Easy to fake | Secure tracking |
| Engagement | Limited | Push notifications |
Designing Rewards That Work
The right reward structure motivates customers without hurting margins:
• Make rewards attainable: 5-10 visits/orders to first reward
• Offer variety: Free items, discounts, exclusive access
• Include experiential rewards: Chef's table, tasting events
• Create urgency: Limited-time bonus points periods
• Surprise and delight: Random rewards for VIP members
• Birthday rewards: Free dessert or discount (high redemption)
Implementation Checklist
Follow these steps to launch your loyalty program:
• Choose a digital platform (built into RestauNax)
• Define reward structure and point values
• Set up customer signup process (email or phone)
• Train staff on enrollment pitch
• Create promotional materials (table cards, signage)
• Add signup prompts to online ordering
• Plan launch promotion (double points first week)
• Set up automated communications (welcome, reward alerts)
Promoting Your Loyalty Program
A loyalty program only works if customers join and use it:
• Train staff to mention it with every order
• Add signup prompt during online checkout
• Include signup cards with receipts
• Promote on social media with join incentives
• Display signage at register and tables
• Email existing customers about the new program
Measuring Success
Track these metrics to optimize your program:
• Enrollment rate: % of customers who join
• Active members: % who earn/redeem in 90 days
• Order frequency: Increase in visits per member
• Average check: Spending increase for members
• Redemption rate: % of earned rewards claimed
• Lifetime value: Revenue per customer over time
Quick Facts
+20-35%
Order Frequency Boost
+12-18%
Average Check Increase
2-3x higher
Member Retention
30%+ of customers
Enrollment Goal
More Frequently Asked Questions
How much should loyalty rewards be worth?
Aim for 5-10% back on purchases. Example: 1 point per dollar, 100 points = $10 reward (10% back). This is enough to motivate without hurting margins significantly.
Should I require customers to create an account?
For loyalty, yes. But make it simple—phone number or email only. Avoid long forms. RestauNax allows one-tap signup with just a phone number.
How do I prevent loyalty program fraud?
Digital programs with phone/email verification prevent fraud. Customers can only earn points on their own purchases. Avoid paper punch cards which are easily duplicated.
Launch Your Loyalty Program Today
RestauNax includes a built-in digital loyalty program with points, tiers, and automated marketing. No extra fees, just more repeat customers.