Restaurant Loyalty Programs Drive Repeat Visits
Industry expert Izzy Kharasch details how effective restaurant loyalty programs, now used in over half of transactions at some brands, increase customer
Restaurant loyalty program usage doubled between 2019 and 2024, now accounting for more than half of transactions at some establishments, according to industry research cited by consultant Izzy Kharasch. Fast-food chains widely offer them, and the trend is expanding into full-service, sit-down restaurants.
By offering incentives for repeat visits, these programs secure steady, reliable customers for the business. The core goal is frequency. Kharasch, writing for Modern Restaurant Management, states that members should be visiting 25 to 50 percent more often. A customer who dined twice a month before joining should be enticed to come at least one additional time.
What Makes a Program Work
The best programs are easy to join, understand, and use. They deliver an initial reward quickly and keep members informed of their progress toward further benefits. However, Kharasch emphasizes that points and perks are merely a bonus. The foundation must be consistent food and service. A guest will not frequent a restaurant they dislike just for loyalty rewards.
Engagement is critical. Successful programs run different specials each month to keep guests involved. They also work to personalize offers. Examples include a free dessert or cocktail for a birthday, invitations to exclusive events, private beer tastings at microbreweries, or special dinners and discounts for top-tier members.
From Sign-Up to Sustained Engagement
Getting a customer to join is only the first step. Front-of-house staff must understand the program thoroughly to explain it effectively. Servers should offer it to every guest, especially those who indicate a positive experience.
Once enrolled, members need regular communication. Restaurants must remind participants they are in an exclusive club with perks. The most important factor for success, according to Kharasch, is constant recognition. Servers and management should make a point of thanking every customer who uses a loyalty card or enters their details. This appreciation, alongside good food and service, build return visits.
The Future Role of AI
Artificial intelligence is set to shape loyalty programs in the coming years. AI will curate rewards based on individual guest behavior-tracking order history and visit frequency-to create personalized enticements.
For instance, if a regular diner skips their usual monthly visit, they might receive a personalized email saying they are missed, accompanied by a tailored offer. This could be a two-for-one deal, a complimentary favorite cocktail, or even an effort to schedule their preferred server. Kharasch notes that today's budget-conscious diners need to feel good about the programs they join, valuing customer appreciation as much as discounts and freebies.
