You should take advantage of dining loyalty programs
In one way or another, we are all members of loyalty programs. Restaurants, hotels, airlines, rideshares, grocery stores, drug stores and even Pampers.
Most fast-food restaurants offer loyalty programs, and the trend is expanding among sit-down establishments. According to industry research, the use of restaurant loyalty programs doubled between 2019 and 2024, now accounting for more than half the transactions in some cases.
By offering incentives for repeat visits, restaurants are getting exactly what they want and need: steady, reliable repeat customers.
Loyalty programs that drive frequency
The best programs are easy to join, easy to understand and easy to use. They offer a reward almost immediately after a customer joins, and keep them informed of their progress toward more rewards.
But, in order for a guest loyalty program to really work, the restaurant must be consistent in both food and service, so loyalty points are a bonus. Why would you want to frequent a restaurant where you don’t enjoy the food or the experience?
The best programs keep the guest involved, meaning that the restaurants run different loyalty specials each month. Guest engagement is the key to a successful loyalty program. Members should be coming into that restaurant 25% to 50% more frequently. If you came twice a month before, the loyalty program should entice you in at least one more time each month.
Great loyalty programs work hard to personalize the program. A free dessert or cocktail on your birthday. Invitations to events that aren’t offered to the general public. One of our microbreweries offers private tastings of their new beers to loyalty members. Other places will do special dinners and discounts to top-tier guests.
Getting you to join is only the beginning
In order for you to be motivated to join a loyalty program, it should be explained by knowledgeable service staff. If the staff doesn’t understand the program, the guest won’t either. The front-of-house staff should be offering the program to every guest, particularly if the guest indicates they had a great experience.
Once you join, you should hear from the restaurant on a regular basis. They need to remind the you that you are participating in a great program that offers special opportunities, like an exclusive club with lots of perks.
The most important part of the success of any program is constantly recognizing and thanking you for being a member. This means that the server and management should make a big deal of everyone who pulls out that loyalty card or enters an email or phone number. Appreciation, in addition to great food and service, is what brings you back.
AI plays a role
Artificial intelligence will shape loyalty programs over the next several years. Rewards will be curated based on a guest’s behavior — what you order, how often you come in — and then creating enticements specifically for you.
For example, if you typically dine once a month and then miss a month, you can expect a personal email from the restaurant telling you they miss you and giving you a personalized offer, such as a two-for-one deal, your favorite cocktail on the house or even making sure you get your favorite server.
We’re still dining out, but we’re more budget-conscious. Make sure you feel good about the loyalty programs you join. You should be getting not just discounts and freebies, but customer appreciation as well.
• Izzy Kharasch is the founder of Hospitality Works, a consulting firm that has worked with 700+ restaurants and small businesses nationwide. He is offering Daily Herald restaurant owners a free consultation by contacting him at Izzy@HospitalityWorks.com.