Loyalty Blogs

Gaining customer loyalty is an essential aspect for every business to grow, and the restaurant industry is no exception! Loyalty programs are one of the most effective ways to reward your customers and retain them. Though some of the restaurant loyalty programs aren’t optimized for long-term engagement, many successful brands that are at the top of the food chain have created their loyalty programs with ease, convenience, several touchpoints, and longevity in mind. To help them thrive better, they do not hesitate in investing on food delivery apps, which encourage customers to try their loyalty programs.  

Building a Restaurant Loyalty Program that is loved by all can be hard work, but it’s not impossible. In today’s blog, we will learn about the essence of restaurant loyalty programs and how you can build a successful one for your business.  

Understanding Loyalty Programs in the Restaurant Sector  

A restaurant loyalty program can be simply defined as a system that is designed to meet the needs of a restaurant or fast-food chain by rewarding customers and retaining them in the long run. These programs offer app-based engagement, freebies, the earn & burn model, and various rewards/incentives such as coupons and branded merchandise. 

Though the restaurant industry is projected to reach $997 billion in sales, there are challenges due to increasing food supply costs and the cost of living crisis, which may affect customer retention. However, with the help of the right restaurant loyalty software, you can create a successful loyalty program that can provide a significant profit, with potential returns of up to 4.8 times.  

One of the best ways to increase the relevance of restaurants is to make use of loyalty programs that enhance the customer experience and personalisation. You can use gamification and experiential rewards that can make each customer visit memorable and tailored to their specific needs.  

Another aspect is to consider the growing rate of smartphone users, which means restaurants must leverage smartphones to enhance customer engagement and communication. For instance, QR codes can be used directly, enabling customers to browse the menu, place orders and make payments. By integrating QR codes or loyalty apps into your loyalty program, your restaurant business can incentivize customers & offer reward points, badges, and other benefits. 

Best Features That Can Be Kept in Mind to Make Your Restaurant Program Unique 

As we know, there is stiff competition in the business market, so it is crucial to integrate the best features and strategies while building a loyalty program for your restaurant business.  

• Go Beyond Points & Tiers 

Brands must invest in loyalty programs that have a hybrid program structure along with earn-and-burn program types and offer instant gratification to customers. Adding gamification elements to the programs by making use of badges and challenges will help to build new habits among customers.  

Traditionally, paper-based loyalty cards work effectively in the restaurant sector, but over time, customers want a digital program that offers a seamless customer experience with fast earning and burning. This will enable customers to get incentives for each interaction and encourage them to come back.   

• Offer Diverse Rewards 

Gone are the days when customers were satisfied with just coupons and freebies from restaurant loyalty programs. It is now time to spice up the experience by adding diverse reward offerings. High-tier restaurants must not offer freebies because it may cheapen their luxurious dining experience. Instead, they may go for a free full dining experience as a premium reward using points.  

• Add Gamification 

Another feature that is important to keep your customers engaged with the program is using gamified loyalty program elements like Spin the Wheel, completing activities, etc. This will help them collect digital rewards after completing certain tasks like the number of visits in a month, spending a certain amount on the latest food menu, etc.  

• Provide Hassle-Free Interactions 

Ensure that you are offering simplified interactions with customers through your loyalty program, making it quick to reserve tables, order in advance, scan QR codes for special treats, etc. You can make use of these systems to keep customers engaged by offering reward points, badges, etc.  

Successful Brands Using Restaurant Loyalty Programs 

1. KFC Rewards  

KFC is a renowned food chain with a presence across multiple locations in the world. KFC UK and Ireland have a loyalty program that is focused exclusively on gamification and instant rewards. For instance, members get in-app invitations to play minigames for every order above 3 euros.  

2. Chick-fil-A Rewards 

This brand has next-gen restaurant loyalty program elements along with its tier system. Customers usually earn 10 points per dollar spent, and higher-level customers earn up to 13 points per dollar. Based on the membership levels, the customers unlock better rewards for enhanced experiences.  

3. Cava Rewards Program 

Built to improve the overall dining experience for members, these rewards programs offer personalised perks, exclusive rewards, and seamless integration within their mobile apps. Members get 1 point per $1 spent, and upon reaching 100 points, they get a $10 reward.  

4. Dunkin’ Donuts 

Another big brand that has over 8 million customers across the globe is Dunkin’ Donuts. Their loyalty program is focused on priority services where members can place orders easily through the app and instantly claim their orders after arriving at the store. The program enables members to earn 5 points on $1 spent, and the points earned can be used for gift cards.  

Final Thoughts 

As we can see, restaurant loyalty programs are on the rise, and they are helping food industry leaders drive more growth and repeat purchases. However, most of the brands are already offering good loyalty programs, making it difficult to outshine them in the competitive market. Ensure that you offer a simplified loyalty program that is focused on personalisation, instant gratification, hassle-free experience and relevant freebies. This will make the program members feel valued rather than just earning rewards for their spending.  

If you are planning to build a head-turning restaurant loyalty program, Novus is the right choice, as it offers a wide range of custom rewards program for businesses in the food and beverage industry. Book a demo for Novus today and elevate your customer loyalty experience to make them come back to your store again and again.