Repeat customers are estimated to generate up to 40% of a business’s revenue and, on average, spend more than first-time buyers.
As a restaurant expert, I’ve seen firsthand how powerful customer loyalty programs can drive repeat business and increase revenue.
In this guide, I’ll explore the best restaurant loyalty programs, offering successful examples and ideas to help you implement an effective strategy for your own restaurant.
Key Takeaways
- Choose a Loyalty Program Type: There are several types of loyalty programs. In most cases, it’s recommended to pick Points-Based Rewards or Item-Based Rewards, where customers earn points and redeem them for discounts or items.
- Boost Customer Retention: Based on our customer data, loyalty programs boost repeat visits, increasing customer retention by up to 34%.
- Focus on Simplicity: Keep the restaurant loyalty program simple and clearly show customer progress to maintain their engagement.
- Increase Average Order Value: Customers who join a loyalty program often increase their average check per visit to earn points and take advantage of program benefits.
- Make Customers Your Advocates: Loyal customers frequently become advocates, recommending the restaurant to others, which can bring new customers.
- Collect Valuable Data: Restaurant rewards programs provide important customer data, enabling you to customize restaurant marketing strategies and menu offerings.
- Save Money on Marketing: Effectively designed loyalty programs serve as budget-friendly marketing tools that strengthen customer relationships and boost restaurant revenue.
What are Restaurant Loyalty Programs?
Restaurant loyalty programs are strategies that reward customers for coming back.
When you join, you earn rewards, points, or stamps for each visit, purchase, or each dollar spent.
The primary goal of dining reward programs is to build strong, long-term relationships with customers, boost customer retention, increase the frequency of visits, and increase restaurant revenue.
Nearly half (47%) of loyalty program members use their memberships several times a month, while almost a third (32%) use them several times a week.
Restaurant loyalty rewards program usually includes the following components:
- Joining: Customers become loyalty program members, usually through a mobile app, website, or a physical card.
- Earning rewards: Customers get bonus points or rewards for each purchase or visit.
- Different tiers or levels: Some programs have tiered structures, where customers can unlock higher levels with more significant benefits as they accumulate points.
- Incentives: Loyalty members get incentives like restaurant discounts, free food (like a free coffee or a free beverage), or special offers as a “thank you” for loyalty.
- Personal touch: Many programs use data to personalize offers and recommendations.
- Staying in touch: Restaurants often send messages through email, text messages, or their app to tell members about cool deals and bonus rewards, such as free meals.
Learn how to increase customer loyalty in restaurant.
10 Best Restaurant Loyalty Programs Examples That Work
Studies show that acquiring a new customer can be anywhere from five to 25 times more expensive than retaining an existing one, depending on the industry and the data you refer to. This makes customer retention through loyalty programs even more crucial for restaurants looking to grow and sustain their business.
In this section, I’ll walk you through 10 restaurant loyalty program examples that have proven to drive repeat business and increased customer loyalty. These real-world examples can inspire you to create a loyalty program tailored to your restaurant’s needs.
1. Chipotle Rewards
Chipotle Rewards is a popular loyalty program that offers customers points for every purchase, which can be redeemed for free food.
New members receive a free guacamole reward on their next order. Members also enjoy exclusive offers, birthday rewards, and early access to promotions.
The program is simple to use, with points accumulating through both in-store and online orders, helping to drive repeat business and increase customer loyalty.
Program type: Points-based
Our Insights on Chipotle Reward Program
- Maximize the App-Centric Experience: Encourage customers to download and engage with your app to track their points, redeem rewards, and receive free food. Promote app usage through in-store signage and digital marketing.
- Leverage Challenges for Extra Points: Create and promote engaging challenges within the app to encourage customers to earn bonus points and badges, driving more frequent visits and interaction with your rewards program.
- Celebrate Customers’ Birthdays: Ensure your rewards program includes a birthday reward feature like in the Chipotle Reward Program, and promote it through the app.
- Promote Exclusive Offers: Use your app to send members-only offers and promotions. Regularly update these exclusive deals to incentivize repeat visits.
- Drive Engagement with Special Food Drops: Introduce limited-time menu items or food drops and advertise them through the app, email, and social media to keep customers engaged.
2. Domino’s Rewards
Domino’s Rewards is a simple yet effective loyalty program that rewards customers with points for every $10 order.
Once you accumulate 60 points, you can redeem them for a free medium two-topping pizza.
The program is available across multiple ordering channels, including phone, in-person, online, and the app, making it accessible for all customers.
Program type: Points-based
Our Insights on Domino’s Rewards Program
- Enable Flexible Ordering: Promote the flexibility of earning points through phone, in-person, online, or app orders.
- Streamline Checkout for Convenience: Highlight the quick and easy checkout process by encouraging customers to save their orders, addresses, and payment details in their profiles to speed up their next order and increase the likelihood of repeat purchases.
- Maximize Multiple Rewards: Promote the ability for customers to redeem more free prizes. For example, Domino’s lets customers redeem up to 5 free pizzas in a 24-hour period, encouraging frequent orders.
- Make Tracking Easy: Simplify the rewards process for customers by ensuring they can easily track their points and redeem rewards through the app.
3. Starbucks Rewards
Starbucks’ loyalty program, known as Starbucks Rewards, allows customers to earn Stars with every purchase, which can be redeemed for free food, drinks, and other exciting rewards.
The best way to experience the program is through the Starbucks app, where customers can customize their orders, save favorites, and pay seamlessly.
They can redeem rewards with just 25 Stars and enjoy special perks like birthday treats and exclusive promotions.
The app also lets them take advantage of Bonus Star challenges, Double Star Days, and engaging member-only games.
In 2023, Starbucks Rewards members accounted for a record 56% of total sales, proving that a customer loyalty program is effective in driving repeat business and increasing overall revenue.
Program type: Points-based
Our Insights on Starbucks Rewards Program
- Promote Personalized Experience via the App: Like Starbucks, encourage customers to save favorite orders, customize drinks, and track rewards through the app, while offering in-store promotions for a more personalized experience.
- Boost Engagement with Bonus Stars & Challenges: Create excitement by running your own bonus challenges, like Starbucks is promoting Starbucks’ Double Star Days.
- Drive App-Only Deals & Games: Promote exclusive app-only deals and fun in-app games that give customers the chance to win free drinks, food, and prizes. Use these features to increase app usage and customer retention.
- Simplify Ordering and Payment: Encourage customers to order ahead through the app, save their payment methods, and streamline the ordering process. Promote the convenience of ordering on-the-go, especially during busy periods.
4. Subway MVP Rewards
Subway’s MVP Rewards program features three levels—PRO, Captain, and All-Star—that reward customers with more benefits as they spend more.
Members earn points with every dollar spent, with 10 points for PRO, 11 for Captain, and 12 for All-Star. Customers can redeem points for free menu items, including sandwiches, drinks, and sides, as they accumulate points.
The program is fully integrated with the Subway app, where customers can track their points, place orders, and receive exclusive offers.
New members also receive a free treat just for joining.
Program type: Tier-based
Our Insights on Subway MVP Rewards Program
- Leverage the Sign-Up Bonus: Offer your customers a sign-up bonus and promote it, like Subway does with their 250-point bonus for new members, to encourage sign-ups. Highlight this offer both in-store and online.
- Promote App Integration: Actively encourage customers to download and use the app to track their points, place orders ahead, and access special offers. Make the app experience central to your loyalty program by offering exclusive promotions and deals.
- Highlight Exclusive Perks for Higher Tiers: Create marketing campaigns around the rewards of advancing through the tiers, such as exclusive member deals. Consider offering tier-based incentives that encourage customers to reach higher levels.
- Simplify Ordering with Customizable Orders: Encourage customers to save their favorite orders in the app, streamlining their experience and increasing convenience.
5. Hut Rewards
Hut Rewards allows customers to earn 2 points for every $1 spent on food and drinks through online orders. These points can be redeemed for free items like breadsticks, pizza, and more.
Members also enjoy exclusive offers such as early access to new products, free or discounted items, and birthday rewards.
The app-based program offers faster checkout by saving payment and address preferences, streamlining the ordering process.
Program type: Points-based
Our Insights on Hut Rewards Program
- Encourage Online Orders: Offer rewards for every purchase, like Pizza Hut does, by promoting the fact that members earn 2 points for every $1 spent through online orders.
- Streamline Online Checkout: Encourage customers to save their payment and address preferences in the app, making the online checkout process faster and more convenient.
- Maximize Special Promotions: Take advantage of special promotions and offers exclusive to loyalty program members.
6. MyPanera Rewards
MyPanera is a rewards program that provides customers with free bakery items, coffee, and discounts for every in-store and online visit. In addition, new members can enjoy 30 days of free delivery upon sign-up.
For beverage lovers, MyPanera offers the Sip Club, a subscription-based service that provides unlimited coffee, tea, iced coffee, lemonade, and fountain drinks for just $14.99/month. Plus, new Sip Club members can enjoy 2 months free before the subscription starts.
Program type: Subscription-based
Our Insights on MyPanera Rewards Program
- Pair Restaurant Loyalty Program with Subscription Perks: Combine your loyalty program with subscription-based offers to provide additional value for your customers. For example, Panera pairs their MyPanera program with the Sip Club, offering unlimited beverages for $14.99/month, including free refills during bakery-café hours. It encourages more frequent visits and increases recurring revenue.
- Encourage Sign-Ups with a Strong Bonus: Promote the extra bonus that loyalty members receive upon joining. For example, Panera offers 30 days of free delivery to new MyPanera members, attracting new customers and encouraging immediate sign-ups for added value.
- Personalize Communication for Higher Engagement: Personal communication keeps members informed and engaged. Panera leverages text messages and emails to notify members about new offers, rewards, and their progress toward free items.
7. Chick-fil-A
Chick-fil-A One is a loyalty program that rewards customers for every purchase. Members earn loyalty points for every dollar spent, which can be redeemed for free food and exclusive rewards.
The program is available through the Chick-fil-A app, where members can track their points, place orders, and receive personalized offers based on their preferences.
This rewards program has tiered membership levels—Chick-fil-A One, Silver, Red, and Signature—each offering increasing benefits such as more points per dollar spent, the ability to gift rewards, and exclusive experiences like Chick-fil-A Backstage Tours.
Members also enjoy birthday rewards and personalized offers, all managed through the convenient Chick-fil-A app.
Program type: Tier-based
Our Insights on Chick-fil-A Program
- Leverage Tiered Membership to Foster Loyalty: Use tiered memberships to reward frequent customers and increase engagement. Chick-fil-A’s program includes four levels, each offering more points per dollar spent and better rewards, such as the ability to gift rewards to family and friends.
- Maximize Points and Reward Gifting: Allow higher-tier members to gift rewards to others, as Chick-fil-A does with its Red and Signature members. This creates an additional level of engagement, as customers can share their rewards with friends.
- Provide Exclusive Experiences for Top-Tier Members: Create unique experiences for your most loyal customers, like the Chick-fil-A Backstage Tour for Red and Signature members. Offering exclusive, memorable perks will deepen customer loyalty and increase program engagement.
8. MyMcDonald’s Rewards
MyMcDonald’s Rewards is a loyalty program designed to reward customers for every purchase. Members earn 100 points for every dollar spent on eligible items, and once they reach 1,500 points, they can start redeeming rewards such as free menu items.
The program is fully integrated into the McDonald’s app, where customers can easily track points, place orders, and redeem rewards in-store, via the Drive Thru, or through kiosks.
New users are also incentivized with 1,500 bonus points when they link a payment card to the app, offering an immediate reward.
Program type: Points-based
Our Insights on MyMcDonald’s Rewards Program
- Encourage Sign-Ups with Bonus Points: Promote the extra points offered for linking a payment card to the app. For example, McDonald’s gives 1,500 bonus points when a customer links their card to the app and makes their first payment.
- Simplify Earning Points: Make it easy for customers to earn points by integrating the rewards system into the ordering process. McDonald’s allows customers to earn points by simply selecting the ‘Earn Points’ tab in the app, scanning a code in-store or at the Drive Thru, and placing their order.
- Limit Redeemable Rewards to One Per Order: Customers are limited to one reward per order, creating a sense of value and excitement with each transaction. Use this to encourage frequent orders, as customers will be eager to collect enough points for their next free item.
9. Costa Club
Costa Club is Costa Coffee’s loyalty program that rewards customers for each purchase, allowing them to earn points that can be redeemed for free drinks, food, and exclusive offers.
Customers can easily track their points, place orders, and unlock personalized deals through the Costa Club app.
New members get a free birthday drink, extra beans for using reusable cups, and access to other exciting perks.
Additionally, members can earn a free drink faster by buying multiple drinks or visiting Costa Express machines for extra rewards.
Program type: Item-based
Our Insights on Costa Club Program
- Reward Milestones to Encourage Repeat Visits: Make sure the path to rewards is clear and motivating. Costa’s system allows customers to earn one free drink after buying 10, encouraging them to continue purchasing to reach the next reward.
- Encourage Sustainable Practices with Rewards: Reward customers who stick to sustainable practices, like bringing their reusable cups. For example, Costa Club offers extra beans for each use of a reusable cup, promoting eco-friendly habits while enhancing customer loyalty.
- Drive Engagement with Exclusive Promotions: Offer special promotions and rewards to keep customers engaged. Costa Coffee runs “Coffee Club Days,” where members earn double points on specific days, encouraging frequent visits.
10. Dunkin’ Rewards
Dunkin’ Rewards is a new rewards program that replaced DD Perks. It allows members to earn 10 points for every $1 spent on qualifying purchases, whether in-store or through the Dunkin’ App.
Members can unlock additional benefits by achieving Boosted Status, which rewards frequent visits.
The program offers exclusive perks, like an annual 3X points bonus on your birthday, and the opportunity to collect special badges in the app.
Program type: Points-based
Our Insights on Dunkin’ Rewards Program
- Use Badges to Gamify the Experience: Add an element of fun and competition by offering exclusive badges that customers can collect through the app. Dunkin’ Rewards allows members to track and display their badges, increasing the sense of accomplishment and encouraging continued participation.
- Encourage Frequent Visits with Boosted Status: Reward customers who visit frequently by offering extra points. Dunkin’ Rewards gives members 12 points per $1 spent when they visit 12 times in a month, which helps to increase engagement and loyalty.
- Offer Special Perks to Increase Loyalty: Use exclusive offers and discounts. Dunkin’ Rewards provides perks like the annual 3X points bonus on birthdays, which adds value and creates a personal connection with customers.
What Are the Most Common Elements of the Best Loyalty Programs?
Improving customer retention by just 5% can increase ROI by 25-95%. These are the results worth focusing on, as minor improvements in loyalty can lead to significant revenue and customer satisfaction growth.
Below, I’ll break down the most common elements that make the best loyalty programs stand out and drive both customer engagement and profitability. This will help you think of your restaurant’s rewards program and how to tailor it to build stronger customer relationships while boosting your bottom line.
- Simplicity: The loyalty program should be simple and easy to use, allowing customers to launch the app, scan the code, and have their points automatically added to their loyalty account.
- Easy Reward Redemption: The program should make it easy for customers to collect and redeem rewards.
- Exclusive Rewards and Perks: The best loyalty programs offer dedicated rewards, promotions, points, and discounts exclusive for loyalty program members.
- Tiers Visibility: In tiered loyalty programs, customers should easily see their current status and understand what they need to do to reach a higher level.
- Push Notifications: When a restaurant integrates a loyalty program with a restaurant mobile app for ordering, it can send push notifications about the latest discounts and special promotions.
- Program Information Access: Restaurants should provide clear information about the loyalty program on their website and/or app, explaining how it works, the rewards available, and the points or stamps customers have earned.
- Low-Cost Rewards: When offering rewards in the form of menu items, restaurants should focus on providing rewards that have high perceived value but low cost. For example, offering mashed potatoes or a side salad with a main course, or fries, coleslaw, or breadsticks as rewards, gives customers something extra at minimal cost to the restaurant, creating a “win-win” situation.
Benefits of Restaurant Loyalty Programs
Below, I outlined the key benefits of restaurant loyalty programs and how they can positively impact your business.
1. Loyalty programs foster customer retention
As data shows, 83% of people are more likely to stick with companies that have loyalty programs, making it a smart move for restaurants.
Loyalty programs are key to keeping customers coming back. Restaurants can increase customer retention by turning their spending into points and offering rewards once they hit certain milestones.
2. Restaurant rewards programs encourage larger orders
Restaurant rewards programs encourage customers to place larger orders by offering points for every purchase, which motivates them to buy more menu items.
Customer loyalty programs also help increase revenue through suggestive selling, encouraging guests to add extra items and boost their total order value.
Focusing on the most profitable food to sell, restaurants can further maximize their earnings from loyal customers.
3. Loyalty programs provide valuable customer data
With a restaurant Customer Data Platform (CDP), these programs can collect customer information like order preferences, age, and location.
Combining this with sales data helps identify trends and make menu adjustments to boost sales.
4. Loyal customers act as advocates and refer new customers
Loyal customers can bring in new guests through word-of-mouth recommendations to friends and family. Their positive experiences often lead to positive online reviews, encouraging others to try your restaurant.
5. Loyalty programs have the potential to drive sales growth
Around 20% of your customer base consists of loyal customers, yet this relatively small group generates a significant impact. They contribute to 80% of your overall revenue.
The more loyal customers you have, the more repeat business is generated, which leads to increased restaurant sales.
How to Select the Right Restaurant Rewards Program?
Choosing the right restaurant rewards program can enhance the dining experience and save money.
Below, I prepared a list of criteria to help you select the best rewards program for your restaurant.
- Dining frequency: Frequent diners may prefer visit-based rewards, while occasional diners might prefer long-term rewards, so select a program accordingly.
- Reward type and structure: Choose a program with rewards that match your customers’ preferences, like discounts or free items.
- Membership requirements: Check if any membership fees or spending thresholds are needed to use the program in your restaurant before selecting a food loyalty program.
- Technology and convenience: Consider whether the program offers a user-friendly mobile app or online platform for tracking rewards and making reservations. Convenient restaurant technology can enhance the overall customer experience.
- Expiration and restrictions: Familiarize yourself with the program’s policies on points or rewards expiration and any usage restrictions before choosing a restaurant loyalty program.
5 Recommended Restaurant Loyalty Software
There are many loyalty programs available in the market. While writing this article, I conducted research to find loyalty programs that would work well for restaurants.
I considered information from company websites offering these programs and restaurateurs’ feedback. Below, you can read my conclusions
- UpMenu offers an easy-to-integrate loyalty program with an online ordering system. It’s ideal for restaurants looking for a low-cost, straightforward solution, with a 7-day free trial. The program is an add-on for an additional $19 to the monthly subscription fee.
- Toast integrates its loyalty program with its POS system, which is excellent for restaurants already using Toast’s platform. However, the $50/month add-on and additional POS costs might be too high for small restaurants.
- Beam Impact focuses on socially responsible loyalty by allowing customers to donate rewards to causes, making it a unique choice for businesses that want to combine commerce with philanthropy, though pricing details are not disclosed.
- Punchh provides a highly customizable, data-driven loyalty program. Restaurants appreciate the ability to send emails, track customer activity, and gain insights into customer behavior, although pricing details are not disclosed.
- Glue Loyalty offers a versatile platform with customizable loyalty options, and the free plan makes it a good starting point for small businesses, while larger businesses can opt for the paid plans starting at $88/month.
When choosing a loyalty program for a restaurant, opt for one that is affordable and easy to use. UpMenu is an online ordering system offering an intuitive restaurant loyalty program as a paid add-on. You pay a fixed monthly fee, so you don’t have to worry about additional costs.
Restaurants appreciate this loyalty program because they can customize it, deciding whether customers will collect points or stamps, what the rewards will be, and having access to reports with customer data.
On the other hand, customers are happy because the program doesn’t require physical loyalty cards, they can check all their data in the app, and the rewards encourage them to make more frequent and larger purchases.
How to Encourage Customers to Join a Restaurant Loyalty Program
Below I share some practical strategies to boost sign-ups and engagement with your loyalty program.
- Integrate the Loyalty Program into a Mobile App: Make it easy for customers to track rewards and access exclusive offers through a restaurant mobile app, simplifying the process.
- Offer Initial Rewards and Promote at Checkout: Give new members a sign-up bonus (e.g., points or stamps) and promote the program during checkout to encourage immediate participation.
- Leverage Existing Channels: Use restaurant social media, email, and SMS marketing to promote the program, highlight its benefits, and invite customers to join.
- Learn from Success Stories and Select Low-Cost Rewards: Review successful loyalty programs from other restaurants and choose affordable rewards that won’t impact profit margins, like free add-ons to main dishes.
- Integrate with Online Ordering: Ensure customers can earn rewards through both in-store and online orders, making the program accessible for all types of dining experiences.
- Simplify the Sign-Up Process: Make it easy for customers to join by offering a straightforward sign-up form on your website or app with minimal information required.
- Incentivize Referrals: Encourage existing members to refer new customers by offering rewards for successful referrals, boosting word-of-mouth marketing.
- Create Exclusive Member Benefits and Remind Customers: Offer special restaurant promotions for loyalty members and send reminders to keep them engaged and encourage repeat visits.
Examples of rewards program incentives
Here is the list of examples of incentives you can offer in your restaurant reward program. Use it as an inspiration to create your own unique loyalty scheme.
Free Meals like:
- a free appetizer
- a free drink
- free kids meals
- free birthday reward
Discounts:
- Get a $5 discount on your next visit after spending $50 at the restaurant
- Get a free dessert on your 5th visit
- Receive a 15% discount on your entire order on Wednesdays between 2:00 PM and 5:00 PM
- Buy a pizza and get another 50% cheaper
- Get free delivery on your fifth order placed online
- Buy any 2 pizzas and get a cheaper one for free
Are Restaurant Loyalty Programs Effective?
After 6 years of working with restaurants, I can say that loyalty programs are definitely a win. I’ve talked to many restaurant owners using UpMenu, and when they started offering a loyalty program, they saw a 25% jump in average order value.
“The main reasons customers spend more in restaurants are:
A loyalty program (38.6%)
Online ordering (38.5%)
Online payment or on a cell phone (37.6%)
Express line or in-restaurant pick-up (36.4%)”
Source: Growing popularity of loyalty programs in the restaurant industry
Loyalty programs can also encourage customers to talk about your restaurant to others and provide valuable insights into your customers, helping you improve your restaurant advertising.
Frequently Asked Questions (FAQ)
Do loyalty programs work for restaurants?
Yes, when implemented correctly, loyalty programs can be very effective for restaurants. Our customers say that after implementing an online ordering system with a loyalty program, they’ve seen a 17% increase in repeat orders.
How to make a loyalty program for a restaurant?
To create a loyalty program for a restaurant, follow these steps:
- Choose a Program Type: Decide if you want a points-based, stamps-based, tiered, or visit-based program.
- Select a Platform: Use a dedicated software like UpMenu to integrate the loyalty program with your POS and/or online ordering system.
- Set Clear Rewards: Offer attractive rewards to encourage customer participation.
- Promote the Program: Advertise the loyalty program on your website, social media, and in-store to drive sign-ups.
- Track and Analyze Data: Monitor customer activity to personalize rewards and improve the program based on customer preferences.
How much does it cost to have a loyalty program?
The cost of building a loyalty program from scratch can range from $100 to even $40,000. Instead of developing one yourself, you can use dedicated software like UpMenu, which offers a loyalty program as an add-on for $19, built into the online ordering system for restaurants.
What is the best example of a loyalty program?
One of the best examples of a successful loyalty program is Starbucks Rewards. It’s a simple yet effective system where customers earn points, called ‘Stars,’ every time they make a purchase using the Starbucks app. These Stars can be redeemed for free drinks, food, birthday rewards, and exclusive member benefits.
