How To Create A Loyalty Program For Your Restaurant

A successful loyalty program can transform your restaurant’s business. It’s not just about giving away discounts — it’s about building long-term relationships with your customers and encouraging repeat visits. When done right, a loyalty program increases customer retention, boosts average order value, and strengthens customer loyalty.

Successful restaurant owners treat loyalty programs like a game. The challenge is the program you design, and the reward is the prize you give. Customers want to feel like they’re winning — and when they do, they come back more often.

Don’t Limit Barriers to Entry

The best loyalty programs are easy to join and simple to understand. According to data from Thanx, customers spend 10-15% more per order when enrolled in a loyalty program. That’s because people are more likely to engage when they know they’re being rewarded.

Make it easy for customers to sign up. Don’t require them to fill out complicated forms or download an app. If a customer can join your loyalty program by simply providing their email or phone number at checkout, they’re more likely to participate.

Avoid restrictions on when or how rewards can be used. If you only allow customers to redeem rewards on specific days or during certain hours, you’re creating unnecessary friction. Let customers redeem rewards whenever they want — that’s how you create a truly engaging experience.

Tear Down Hurdles

Think about how frustrating it is to play a game and not be able to collect your reward. That’s exactly how customers feel when they can’t redeem their loyalty points because of missing information or technical issues.

If a customer forgets their loyalty card or can’t log into their account, make it easy to look them up using their phone number or email. A lot of modern POS systems allow you to store customer information and track loyalty points automatically.

Make the process as seamless as possible. If a customer knows they can count on earning and redeeming rewards without hassle, they’ll keep coming back.

Everyone Likes a Bonus

People love getting unexpected rewards. Just like getting a bonus in a board game, offering surprise rewards creates excitement and builds customer loyalty.

Surprise your customers with extra reward points for ordering specific menu items or visiting on slower days. Offer a free dessert or drink to your most loyal customers — even if they didn’t expect it.

Small gestures like this create a sense of exclusivity and make customers feel valued. When customers feel like VIPs, they’re more likely to keep coming back — and to tell their friends about it.

Incorporate Referrals

Referral programs are one of the easiest ways to grow your customer base while rewarding loyal customers at the same time. If you’re spending money on ads to attract new customers, why not reward your existing customers for bringing in new business?

For example, offer a free appetizer or $5 off for every friend a customer refers. Not only does this encourage referrals, but it also increases customer engagement with your loyalty program. Successful brands like Uber Eats have mastered this strategy — and it works just as well for restaurants.

Keep It Simple and Track Performance

The best loyalty programs are easy to use — for both you and your customers. Track customer behavior, measure redemption rates, and adjust the program based on what’s working.

Get Started With Loyalty and Rewards

We have a built-in loyalty and rewards feature that makes it easy to track customer engagement and redemption rates. If you take this feature, you can monitor and adjust your loyalty program directly from your POS — helping you increase customer retention and grow revenue effortlessly.