November 05, 2025
Who doesn’t love getting rewarded? For customers, restaurant loyalty programs are a fun way to treat themselves and get something on the house. Reward programs are a smart way to recognize and reward your repeat customers. Since 41 percent of customers are encouraged to purchase from establishments with loyalty programs, it’s a great way to turn first-time customers into regulars.
Want the best tips on developing a program to ensure customer retention? Read on for all the details.
Why Does Restaurant Loyalty Matter?
Owners know that a happy customer will often become a loyal diner, but why is loyalty important to profitability? Guests can become a restaurant’s best marketing tool through word-of-mouth promotion and user-generated content — both of which help drive new business. In addition, faithful patrons spend as much as 67 percent more on their favorite brands than non-regulars. The goal? Retain your regulars and entice newcomers to come back, again and again.
4 Types of Restaurant Loyalty Programs and How They Work
Customer loyalty programs are an easy way to attract consumers and elevate sales. Nearly 40 percent of restaurant visits can be linked to loyalty rewards. The trick is picking the right type of program that fits your restaurant’s vibe and budget. Here are four of the most common and effective loyalty program models, plus some ideas to help you get started.
1. Point-Based Programs
This is the classic approach, for good reason. Customers earn points for every dollar spent or visit made, and those points add up to rewards. Most restaurants keep it simple: $1 spent = 1 point. You can then set clear redemption goals, like 25 points for a branded mug, 50 points for a free drink, or 100 points for a complimentary appetizer. The key is transparency. Customers should easily understand how they earn and spend their points.
Pro tip: promote bonus point days or “double points” weekends to spark extra excitement.
2. Item-Based Programs
Think “buy 9, get the 10th free.” This punch-card-style system is straightforward and instantly gratifying, which excites customers and motivates them to return. It works exceptionally well for coffee shops, bakeries, or lunch spots with repeat customers. But any establishment can get creative. Maybe a customer who tries every dessert on your menu gets a free slice of their favorite, or a diner who orders lunch every weekday earns a branded T-shirt.
Pro tip: make it fun, attainable, and tied to your signature items.
3. Subscription-Based Reward
Want predictable revenue and steady engagement? A subscription model might be a valuable option. Customers pay a set fee, monthly or annually, for perks. Standard subscriptions are often meal kits, discounted meals, free delivery, or exclusive menu items. This model builds a sense of community and keeps your most loyal customers invested in your brand.
Pro tip: reward milestones, such as a free entrée after three months or a special gift after six.
4. Promotional-Based Rewards
Perfect for boosting business during slower times, these time-sensitive rewards create urgency. For example, you might send a “birthday month” freebie, a midweek drink special, or a limited-time “thank you” reward. The goal is to encourage visits within a specific window, turning occasional diners into more frequent guests.
Pro tip: Personalize your promos by using customer data (like birthdays, anniversaries, or favorite dishes).
Getting Started With Restaurant Rewards Programs
Not sure where to get started? There are several platforms that offer user-friendly solutions tailored for restaurants, allowing you to manage rewards, track customer engagement, and enhance retention. A few options include:
- TouchBistro offers an integrated POS and CRM system that allows you to manage loyalty rewards, track customer data, and engage guests through a branded web app.
- Toast provides a customizable, POS-integrated loyalty program that enables guests to earn points per dollar spent and features like tiered rewards.
- Loopy Loyalty a mobile-first, digital stamp card experience compatible with Apple and Google Wallets.
- Canva offers online templates for item-based punch-cards to quickly and easily get started.
- Marigold offers a comprehensive loyalty platform that supports personalized rewards, tiered memberships, and cross-channel integration.
No matter which approach you choose, keep it simple, consistent, and rewarding. The easier it is for customers to participate, the more likely they will keep coming back. At the same time, make sure your rewards make financial sense. Freebies can be a great incentive, but if they start cutting into your profits, the program may do more harm than good.
Brand Boosting Business Tools from CHEF’STORE
At CHEF’STORE, we offer premium restaurant supplies and products to keep menus innovative, without high food costs. However, we don’t stop there. We also provide our culinary partners with helpful business resources to improve operations and customer satisfaction.
Visit one of our many locations and explore what we have in store!