Best bets for promoting restaurant gift cards this season

The U.S. gift card market this year is expected to reach an estimated $324.5 billion. About 52% of consumers buy gift cards from restaurants, and consumers often spend more than the value of the gift cards they receive when they use them. Here’s how to take advantage of this huge market during the holiday season. 

Give customers a choice. Offer both physical and digital gift cards. Research indicates younger consumers prefer digital cards, while older diners like having a physical card to use and/or give as gifts. Most POS systems can track either digital or physical gift-card sales, and your card transaction processor can usually provide physical gift cards with your branding on them. You can easily sell digital gift cards online on your website or mobile app.

Offer additional value. Give customers the incentive of an additional gift card (e.g., $10 when you buy $100); a discount price (10-30% off face value); or a bonus such as two free desserts on top of the card’s value. Or give customers who buy gift cards coupons for 20% off their next appetizer order, a complimentary glass of wine, or free delivery on a takeout order. One Colorado restaurant sells a “beer for a year” card for $100 that entitles card holders to one free craft beer every time they stop in, and recently sold 50 in a 1-week promotion.

Sell experiences, not just food. Cash gift cards let guests choose what they want to spend their gift on, but offer gift cards for experiences, too, such as cards for different tasting menus, a chef’s demo and wine-tasting event, holiday dinners such as Valentine’s Day for two, or a date-night package of dinner and tickets to a local movie or show.

Hold a giveaway. With each gift card purchase, enter customers in a giveaway for a prize, such as free appetizers for four or dinner for two. 

Reward loyalty club members. Give loyal customers a reason to buy gift cards by hosting an evening with a special menu and entertainment just for card buyers. Offer them bonus gift cards for reaching certain spending thresholds, or for referring new customers or new gift-card purchasers to your restaurant.

Partner with local businesses. Set up cross promotions with other businesses in town, like hotels and movie theaters, to sell gift cards for packages, like dinner and a movie or dinner and a night’s stay at a hotel. Approach other retailers and offer to promote their gift cards in your restaurant if they’ll display your gift cards in their stores.

Give back to your community. Take advantage of the holiday spirit. Tie in with a local charity or community organization and donate a percentage of your gift-card sales. Give the organization materials, such as posters and gift-card displays, to help promote the fundraiser, and be sure it shares the message with its email list of volunteers and donors.

Incentivize employees. Make sure staff members remind guests you have gift cards available. Offer employees a $10 gift certificate or cash for every $200 in gift cards they sell.

Let people know. Pull out all the stops to tell people about your program. Here are a few of the ways you should communicate with your customers.

• In-house gift-card display (at cash register, in waiting area, at hostess stand, etc.)
• Posters and signage
• Menu callouts and/or inserts
• Email blasts and direct mail
• Messages on receipts, including QR codes to the digital-card purchase site
• Social media posts on Facebook, Instagram, LinkedIn, X, etc.
• Server suggestions
• Table tents
• In-store menu kiosks or video screens
• Your website
• Your restaurant mobile app

Gift cards give back to your restaurant in multiple ways, and the holidays are the very best time to sell them.