Restaurant owners are constantly looking for ways to improve customer loyalty. It’s well known that the cost of retaining an existing customer is significantly less than acquiring a new one, and loyal customers can have a huge impact on overall profitability.
For decades, successful loyalty programs have been keeping customers coming back to hospitality businesses. However, many now find themselves asking whether loyalty card programs still deliver results in today’s competitive market.
The simple answer is a resounding yes. Yet, not all programs are created equal and modern diners expect more than just a chance to collect stamps, they want meaningful rewards and tailored experiences that create a genuine sense of belonging. When designed well, loyalty rewards programs for restaurants will not only boost repeat visits but turn first-time guests into regulars, driving business growth.
In an industry where diners have endless choices, restaurant loyalty schemes remain one of the most effective ways to increase the likelihood of return visits. In fact, over half of global customers considered loyalty programs important to keep them connected to their favorite brands. They remain a valuable tool for encouraging repeated purchases and continue to be a staple in nearly every marketing plan.
Here are some of reasons why loyalty card programs still work for restaurants:
Loyalty card programs help create an ongoing relationship between restaurants and diners. They’re designed to encourage repeat visits and there is a psychological incentive for customers to return, as they know they’re working towards their next reward. As well as providing tangible rewards for patronage, they can also create a sense of belonging and build a connection between a brand and its customers.
Ultimately, members aren’t just returning for rewards, they’re coming back because they feel recognised and valued. When customers feel appreciated, they’re more likely to become regulars and choose your restaurant over competitors. They are also more likely to be ambassadors who recommend your restaurant to others, helping drive new business through word-of-mouth and positive reviews. This translates into more frequent visits, higher average spend, and a more reliable revenue base, even during off-peak periods.
Restaurant loyalty schemes don’t just reward transactions, they provide another way to gather valuable information about your customer base. You can learn more about menu preferences, ordering habits and visit patterns, enabling you to tailor your offerings to what your guests really want. Whether it’s a free drink on birthdays, mid-week special offers or exclusive tasting event invites, you can use the data collected to create more personalised experiences. This approach helps to improve the engagement of your rewards program, encouraging customers to return not only for value but for a bespoke experience that feels special.
Data-driven insights also allow you to measure what’s working and what needs to be improved by tracking repeat order rates, average spend increases, reward redemptions, and more. With this information on hand, you can improve your programs and confidently invest in rewarding the loyal guests who matter most to future growth.
Over time, restaurant loyalty schemes have evolved, largely driven by advancements in technology. Traditional punch cards have been replaced by sophisticated mobile apps and online platforms. This evolution has also been impacted by how different generations interact with brands. In 2024, Millennials showed the highest level of brand loyalty and younger consumers put higher value into personalisation in comparison to Baby Boomers.
Restaurant loyalty schemes now go beyond providing discounts to creating experiences, from VIP nights to early access to new menus. By tapping into customer motivations with well-structured rewards programs, restaurants can boost brand loyalty, collect valuable data, and stay at the forefront of a crowded market.
There are lots of different loyalty schemes for restaurants, and there’s a solution available for every type of restaurant, regardless of size or style. However, before choosing a platform, it’s best to decide which type of loyalty program you want to offer. Some of the most popular include:
Although times are changing, it’s still possible to create successful loyalty programs for restaurants. When you’re developing a loyalty card scheme, there are a few important points to remember to boost the likelihood of customer engagement:
For restaurant owners, loyalty card programs remain a powerful tool. They’re not outdated, but they can be improved by implementing new technology and more enticing rewards. Whether it’s through points collection or subscription perks, loyalty rewards programs for restaurants can drive repeat business and nurture lasting guest relationships. By choosing the right type of restaurant loyalty program, you can turn everyday guests into loyal advocates.
If you’re interested in creating a loyalty scheme or updating your current program, our team at NFS Hospitality can help. We offer a range of software solutions that can help boost retention, and will be happy to discuss the benefits of different options with you in more detail.
