Restaurant Loyalty Programs: a complete Guide to engage Guests

Transforming a casual visitor into a loyal guest is a complex process. Every dish, smile, and interaction matters when building long-lasting connections with your clientele. For restaurant owners and managers, understanding and implementing effective guest loyalty initiatives can be a game-changer.

This guide will walk you through what restaurant loyalty programs are, why they're crucial for your business, and how you can create and leverage them to turn passing guests into steadfast regulars.

What is guest loyalty in the restaurant industry?

In the restaurant industry, customer loyalty is about building a trust-based relationship that encourages people to visit your restaurant regularly. Achieving this loyalty goes beyond delivering excellent quality food and service; it's also about providing a consistent, memorable, and remarkable dining experience every time. It’s about making your guests feel valued and connected to your brand on a more personal level.

Why are loyalty programs important for your restaurant?

Fostering guest loyalty through a well-structured restaurant loyalty program is a strategic investment that pays off on multiple levels. It's not just about rewarding repeat business; it's about investing in your restaurant's reputation and creating a community-focused brand image. Understanding how to increase guest loyalty in your restaurant is fundamental for long-term success.

By putting loyalty at the top of your agenda, your establishment has the opportunity to maximise the lifetime value of each guest. Consider Gaucho, a restaurant chain operating in 20 locations across the UK. They reward guests for each visit when they also subscribe to TheFork’s Yums loyalty program. Guests benefit twice: first, they are rewarded by Gaucho for returning, and second, they earn ‘Yums’ points through TheFork that can be spent at hundreds of other restaurants.

Here’s why loyalty programs are so important:

• Increased sales and revenue: Loyal guests tend to visit more frequently and spend more per visit. Every additional visit from a returning guest not only guarantees a sale but also increases the chance that they will explore more of the menu, including signature dishes or special items.
• Valuable guest data: These programs help you gather information about your guests' preferences and spending habits, allowing for more personalised offers and communication.
• Improved operational efficiency: A predictable stream of loyal guests can help with better inventory management and cash flow planning.
• Competitive advantage: Offering a loyalty program can set you apart from competitors who don't have similar initiatives.
• Brand advocacy and community building: Happy, loyal guests often become your best advocates, recommending your restaurant to friends and family.

By strengthening guests’ loyalty, you will build a solid foundation for your restaurant, ensuring a stable and growing source of income.

Key steps to create a successful restaurant loyalty program

Creating a successful restaurant loyalty program requires careful planning. Here are some key steps to guide you:

1. Define your objectives: What do you want to achieve? Are you aiming to increase visit frequency, boost the average spend, attract new guests, or a combination of these? Clear goals will shape your program.
2. Understand your guests: What kind of rewards would they genuinely appreciate? Simple discounts, exclusive experiences, free items, or early access to new menus? Tailor your program to their desires.
3. Choose the right type of program: There are several models for customer loyalty programs for restaurants:
   • Points-based: Guests earn points for money spent, which can be redeemed for rewards (like TheFork Yums). This is a popular and straightforward approach.
   • Tiered programs: Offer increasing benefits as guests reach higher spending levels or visit frequency. This encourages greater loyalty.
   • VIP/Paid programs: Guests pay a fee for exclusive benefits. This model suits establishments with a highly engaged guest base.
   • Visit-based or spend-based: Reward guests after a certain number of visits or when they reach a specific spending threshold. Consider which model best fits your restaurant type and guest base.
4. Set attractive and attainable rewards: The rewards must be perceived as valuable and achievable. If rewards are too difficult to earn, guests may lose interest.
5. Select the right tools: Utilise your POS system's loyalty features, consider dedicated loyalty apps, or leverage platforms like TheFork Manager that offer integrated loyalty solutions.
6. Promote your program effectively: Make sure your guests know about it. Announce it in your restaurant, on your website, via social media, and through email newsletters. Train your staff to mention it.
7. Monitor, analyse, and adapt: Track your program's performance. Are guests signing up? Are they redeeming rewards? Don't be afraid to make adjustments to improve its effectiveness. For more strategies for guest loyalty, continuous learning and adaptation are key.

Leveraging word-of-mouth and your online reputation

Your restaurant's reputation is one of your greatest assets. Through word-of-mouth recommendations, satisfied guests share their positive experiences, attracting new visitors. Loyal guests are often the best testimonials, as personal recommendations are perceived as more sincere and reliable than traditional advertising.

With the rise of digital marketing, word-of-mouth extends to online reviews and social media. Many diners share snaps of great food as part of their experience. Encourage this by:

• Gently prompting for reviews or feedback after a meal.
• Making it easy for guests to share their experiences on social media (e.g., by having a unique hashtag or an "Instagrammable" spot).
• Actively managing and responding to online reviews, both positive and negative.

Loyalty programs can fuel this: rewarded and appreciated guests are more likely to become vocal advocates for your brand, reinforcing your reach and reputation.

Examples of effective restaurant loyalty ideas

Looking for inspiration? Here are a few simple yet effective restaurant loyalty ideas that can be adapted by various types of eateries, not just large chains:

• The classic coffee card: A local café could offer a free coffee after a guest purchases a certain number (e.g., eight) of drinks. This is simple to manage, either with a physical stamp card or a digital app.
• Birthday treats: A restaurant could offer a special discount, a complimentary dessert, or a free drink to members of its loyalty club on their birthday. This personal touch makes guests feel special.
• Tiered access to experiences: A fine-dining restaurant might offer a tiered program where "gold" level members get exclusive access to new menu tasting events, chef's table bookings, or priority reservations during peak times.

The key is to offer something that your specific clientele will find valuable and that aligns with your brand.

Using TheFork Manager to enhance guest loyalty

TheFork Manager provides several tools designed to help you build and nurture guest loyalty effectively.

Offer rewards with TheFork’s Yums loyalty program 

When you join TheFork's Yums loyalty program, guests who reserve a table in your restaurant through the app automatically earn 100 points – or ‘Yums’. Once they reach 1,000 Yums, these points can be redeemed for discounts on future visits. This simple system adds value to every visit. Guests feel rewarded, strengthening their bond with your restaurant, and you can discover surprising benefits of the Yums program for your business, too. Campaigns like Double Yums can help accommodate more guests during specific periods.

Special offers: the personal touch that makes a difference 

TheFork Manager allows you to set up special offers during your preferred time slots. A guest benefiting from a discount (e.g., 20% to 50% off) is often a happy diner who will return, even when the promotion has ended. These offers boost your visibility on TheFork platform and increase guest satisfaction. The Real Greek, for example, experienced a significant uplift in bookings during TheFork Festival by offering appealing discounts, and many of whom became regular guests thanks to their high-quality food and service.

Ensure the guest experience is central with a smart database

An exceptional experience, from booking to billing, is fundamental. TheFork Manager's database functionality helps you turn casual diners into regulars. When a guest reserves online, the software automatically creates a profile with their details, regardless of the booking channel (TheFork, TripAdvisor, Google, your website, social media). You can easily add profiles for phone reservations or walk-ins.

This private database allows you to record valuable information:

• The guest's birthday
• Allergies or dietary habits
• Preferences (e.g., favourite table, wine choice)

Having this information allows you to anticipate needs and personalise their experience, making them feel truly valued. By taking administrative tasks off your hands, TheFork Manager frees you up to offer guests the best possible service.

Transforming one-off visitors into loyal patrons is an ongoing effort, but implementing a thoughtful restaurant loyalty program as part of your overall strategy makes it an achievable and highly rewarding goal for any restaurant.