Loyalty programs are not a thing of the past. In fact, increasing technology integration, like apps, is making loyalty programs not only a norm, but an expectation. And growing research shows that it is hugely beneficial for restaurant businesses.
“Data agency Circana LLC released new research [most recently] that found restaurant loyalty traffic doubled from 2019 to 2024, and loyalty members now represent 39% of total restaurant visits,” reported Ron Ruggless for Nation’s Restaurant News (NRN) this week.
In days past, loyalty programs might look like phone number-linked accounts or plastic cards to scan—and rewards that ensured customer loyalty to the point of exclusivity. Now, with apps, email capture, and opt-in text messages, restaurants have been for many years utilizing loyalty programs. In the current realm of reviewing the positive impacts a loyalty program can create, these programs can build loyalty with operators customer base, offering perks and community without the expectation of exclusivity. Not only does the current tech make it easier, consumers who today are opting-in to loyalty programs have proven to be busier diners and shoppers. They may be loyal to more than one brand—and they are spending at both.
““These consumers are heavier users of restaurants overall, making 22% more visits per year than nonmembers,” the Circana report said. “While they don’t visit single brands exclusively, they frequent brands they’re enrolled in at twice the rate of nonmembers, allocating 8% of their total restaurant visits to that brand, compared to just 4% among nonmembers.”
As with other more modern customer communication options, like social media, the trick is engagement. Enrollment in a loyalty program doesn’t guarantee success; but creating opportunity within the loyalty program will build participation and loyalty among users. Tim Fires, Circana’s president of global foodservice, said in a statement, “Enrollment gains alone do not guarantee success. Restaurants must make meaningful personal connections and create moments of surprise throughout the year.”
Whether your restaurant uses an app to build a loyalty program or has some other means of inviting guests to opt-in to your brand, this is the tactic. Perks like birthday freebies, monthly discounts, and exclusive deals or menu items build loyalty by making members feel a part of something. You create a “club” that people want to be a part of.
Creating and enhancing a loyalty program can be an easy way to entice repeat customers to your restaurant and a great way to build rapport with new and returning guests. Our restaurant consultants can provide additional information as to how you can create loyalty programs and brand perks that work with your restaurant’s menu, business model, and client base. Whether you have the bandwidth to create an app or you invent something more homegrown, the opportunity is about building client loyalty by inviting people into something valuable.