Chances are, you’ve either participated in or ran a loyalty program. The most time-tested one is the buy-X-times, get-something-for-free punch cards. These are great if your customers carry a bunch of punch cards around them all the time. But our guess is that they don’t. Phones and apps rule these days, and if you want to stay in the game to offer your customers a little “thank you” for their continued business, there are several modern ways to do it.
But first, let’s cover the basics: What is a loyalty program? Why does it matter for your business? And how do you choose the right one? Let’s break it down.
What Is a Restaurant Loyalty Program?
At its core, a loyalty program is a system that rewards your guests for repeat visits or spending money with you. It’s a way to say, “Thanks for coming back — we noticed, and we appreciate you.” In return for their loyalty, guests may receive discounts, free items, exclusive perks, or access to special promotions.
Some programs are super simple (like tangible paper punch cards). Others are high-tech, built into your POS system, with customer data tracking and automated email marketing. Either way, the goal is the same: to turn occasional guests into regulars.
Think of loyalty programs as a two-way street. Your customer gets rewarded for choosing you, and you get something just as valuable in return: a deeper relationship, more frequent visits, and often, higher average tickets.
Why Should My Restaurant Bother With a Loyalty Program?
Restaurant loyalty programs have been proven to drive repeat business. But it’s not just about frequency. Loyalty programs can also increase how much people spend. If your rewards are tied to purchase totals, such as earning a point per dollar, customers will often add that extra side or drink to reach the next milestone. That $10 reward at 100 points suddenly motivates someone to go big today.
Beyond dollars and visits, loyalty programs help you build stronger relationships with your guests. When you collect customer data, like their name, birthday, or favorite menu item, you can create more personalized experiences and marketing. Imagine sending a guest a coupon on their birthday or a thank-you for their 10th visit. Those touches make people feel known and valued, and that translates to long-term loyalty.
A good loyalty program is also a marketing engine. With the proper setup, you can send targeted offers, reach out to lapsed customers, or promote slow days. It’s like a low-key CRM that lives inside your restaurant’s ecosystem.
The Best Loyalty Programs for Restaurants
There’s no shortage of options available, but a few loyalty platforms consistently stand out, especially for small and mid-sized restaurants that seek practical and easy-to-manage tools.
Toast POS
Their built-in Toast Loyalty system is a no-brainer. It’s fully integrated, so your staff doesn’t have to toggle between systems. Guests earn points per dollar, and you can easily create custom rewards and birthday offers and track redemption rates right from your dashboard.
Square Loyalty
A favorite for quick-service restaurants, cafés, and food trucks already running on Square. Customers check in using their phone number, and the program automatically tracks their visits and rewards them accordingly. You can set rewards by visit count or amount spent, and the interface is clean, simple, and mobile-friendly.
Thanx
For restaurants that want to skip apps and check-ins altogether, Thanx is an excellent solution. Guests don’t need to scan anything; Thanx tracks purchases via linked credit cards. It’s a smooth, low-friction experience for customers, providing access to powerful tools such as automated email campaigns and customer retention analytics.
Paytronix
If you’re ready to go all-in on data and automation, Paytronix is one of the most comprehensive platforms out there. It’s built for restaurants that want omnichannel loyalty, tracking across in-person dining, online orders, and even delivery platforms. It’s robust and feature-rich, but best suited for multi-location brands or restaurant groups with more advanced needs.
The best loyalty program for your restaurant is the one that integrates easily into your existing systems and feels intuitive for both staff and guests.
Not All Loyalty Programs Are Created Equal
Not all loyalty programs look the same, and punch cards shouldn’t be dismissed too fast. As the OG of loyalty, they’re simple, tangible, and familiar. Coffee shops and casual lunch spots love them because they’re easy to set up and require no technology. However, they do have some downsides: they can get lost, they don’t collect any customer data, and they don’t facilitate targeted marketing. If you prefer to keep it analog, however, you can modernize it slightly with digital punch card apps like Stamp Me or Loopy Loyalty.
A super-niche loyalty program is a Mug Club, Whiskey Club, Sauce Club, or something along those lines if they fit your restaurant concept. For example, if you’re a bar or brewery, customers love having personal mugs from which to sip their ales. It makes them feel special, and when they’re looking for the best place for happy hour, they’ll quickly become an establishment regular. Mug Club users get discounts on their orders.
On the other end of the spectrum are loyalty platforms, which we covered above. These programs do require a bit more setup and usually come with a monthly fee, but they offer a serious return on investment, especially if you want to grow or manage multiple locations.
How to Make a Loyalty Program Work
While it doesn’t have to be fancy, your chosen loyalty program should be consistent, valuable, and tailored to your customers. Your guests should understand how it works immediately, and the rewards should feel worthwhile. Clearly communicate it on your menus, at checkout, online, and anywhere else a guest might see it.
You also need to promote it. A lot of restaurants launch a loyalty program and then bury it in the background. Your team should be talking about it to guests, and you should be posting about it on Instagram and in email campaigns.
Loyalty programs are about relationships, which are the bedrock of successful businesses. They’re about creating a sense of belonging. When someone feels like your restaurant sees them, values them, and wants them to come back, you’ve really built loyalty.
Still not sure which program will work with your website and POS and ALSO be loved by your customers? Reach out, we’d love to chat, learn more about your restaurant, and find out how we can help you integrate the perfect loyalty program for your business. Get in touch today.
