Innovations in restaurant loyalty programs

As customers become increasingly value-conscious, loyalty programs can turn a casual customer into a frequent visitor. 78% of customers say they are more likely to visit a restaurant where they can earn points, even if it isn’t as convenient, according to the National Restaurant Association’s State of the Restaurant Industry report. It also can turn customers into valuable brand advocates.

With 67% of restaurants offering a loyalty program, there’s healthy competition for customer loyalty.  Winning programs deliver value and build a deeper level of customer loyalty. Let's dive into the ways you can make a loyalty program resonate with customers and drive real business results.

Choose the right technology
If you haven’t already, now is the time to invest in robust, user-friendly loyalty program software. Customers want to easily earn, track, and use their rewards. From an operational and customer experience standpoint, smooth and efficient redemption is critical to successful participation. 

• Starbucks uses a mobile app that integrates seamlessly with its point-of-sale system. This allows for real-time tracking of rewards and easy redemption. When a customer orders a latte, they simply scan their app at checkout to pay. The purchase is instantly recorded, points are added to their account, and any available rewards can be applied immediately. This frictionless experience encourages frequent use and higher customer satisfaction.

Personalize the experience
By leveraging AI and data analytics, brands can offer a level of personalization that feels almost magical to the customer. This approach isn’t just about reacting to customer preferences; it’s about anticipating them. A loyalty member could receive an offer based on their habits such as a deal based on their recent orders or double points when they visit more often. This makes customers feel recognized, creates a deeper connection, and incentivizes their choice of one restaurant over another.

• Chick-fil-A's tiered membership system offers personalized rewards based on a customer's purchase history. If a customer frequently orders breakfast items, the AI might offer a free hash brown with their next breakfast purchase, increasing the likelihood of a morning visit. 

Implement gamification
Whether it’s earning badges, completing challenges, or leveling up within a program, these elements transform the loyalty journey into something that’s not just beneficial, but enjoyable. And when customers are having fun, they’re more likely to stay engaged. 

• Domino's "Piece of the Pie Rewards" program turns ordering pizza into a game. Customers earn points for every order, which they can redeem for free pizza. They can also participate in challenges, like ordering from multiple store locations, to earn bonus points. This gamified approach adds an element of fun and competition, encouraging more frequent orders.

Offer exclusive rewards 
Exclusivity is a powerful motivator. Special perks and offers only accessible through the loyalty program create a sense of privilege and status. Whether it’s early access to new products, VIP events, special discounts, or other incentives, these exclusive rewards make customers feel part of an inner circle, deepening their connection to the brand.

• The Capital Grille's "Concierge" program offers exclusive dining experiences. Members get priority reservations, invitations to special events like wine tastings, and personalized service from a dedicated concierge. These exclusive benefits make members feel like VIPs, strengthening their emotional connection to the restaurant.

Integrate across all channels…
The customer journey is not linear—it’s a web of interactions across multiple touchpoints. Loyalty programs must meet customers wherever they are, offering a seamless experience across online and offline channels. Whether a customer is browsing on their phone, shopping online, or visiting a physical store, their loyalty experience should be consistent and easy to navigate. 

• Panera's MyPanera program integrates across all of its platforms. Whether a customer orders in-store, through the mobile app, or via the website, their rewards are always accessible and can be applied to any purchase. This omnichannel approach provides a consistent experience, making it easy for customers to engage with the program regardless of how they choose to order.

And integrate across all concepts
Updating the company’s mobile app was no mean feat for the marketing team at Lettuce Entertain You Enterprises, Chicago. As a multi-concept operator with 110 restaurants in multiple states, the online app as of 2023 had grown into a mixed bag of legacy platforms in the 9 years since it was first created. The company’s current LettuceEats app is a comprehensive single platform for guests to find and interact with all the company’s brands and locations. It streamlines processes like delivery and carry-out orders, handles reservations, manages loyalty points, enables gift card purchases and stores them in a digital wallet, and keeps users informed about Lettuce’s latest events and offerings. Now all of loyal Lettuce customers’ business with the company is centralized.

Gather and act on feedback
Successful restaurants understand that customer feedback is a goldmine of insights. Using your loyalty program to collect and respond to customer comments creates a continuous feedback loop. This gives brands the input needed to stay aligned with customer wants and needs.

• Sweetgreen's rewards program includes a feedback component. After each purchase, customers are prompted to rate their experience. High ratings can earn bonus points, while constructive feedback is immediately addressed, improving customer satisfaction. This two-way communication shows customers their opinions are valued and gives the restaurant valuable input.

Keep it simple
Although the technology behind a loyalty program may be complex, the program itself must be easy to understand and use. An easy-to-understand structure encourages participation and reduces confusion, leading to higher engagement rates.

• Dunkin' Rewards uses a straightforward points system. Customers earn 10 points per dollar spent. These points can be redeemed for specific menu items, making it easy for customers to understand the value of their points. 

Promote your program
Customers can’t participate in a loyalty program if they aren’t aware it exists so it’s important to market your loyalty offering effectively to drive participation.

• Chipotle promotes its rewards program through targeted email campaigns and in-app notifications. New menu items are introduced to rewards members first, incentivizing program sign-ups and increasing engagement with existing members. This strategy not only boosts loyalty program participation but also creates a sense of exclusivity that can drive word-of-mouth marketing.

Implementing these actionable steps can create a loyalty program that attracts customers and keeps them coming back. The key is to provide value, personalization, and a seamless experience across all touchpoints.