Loyalty Programs for Restaurants: Stats and Trends 2024

In today's restaurant-filled world, it's important to have loyalty programs to build a group of loyal customers. These programs reward guests for returning and staying engaged with your brand, ultimately generating more revenue. Loyalty programs that reward and incentivize frequent guests have come a long way from their analog beginnings. Historically, loyalty programs started as simple actions like Betty Crocker’s box top collection during the Great Depression. Today, they use technology and data analytics to reward customers while making the experience personalized and engaging. 

In the restaurant industry, these programs often include point-based systems, discounts, free items, and exclusive offers. Well-designed loyalty programs get guests to buy and spend more, making them a must-have for business growth. 

Based on the data we've analyzed at Deliverect, we've found that offering promotions or cashback as part of loyalty programs can lead to customers spending up to 24% more. 

Reaching out regularly via emails, texts, or notifications can help double customer retention. The best part is that Deliverect has marketing and loyalty tools that restaurants can use immediately.

Customer loyalty programs have been growing year over year and are highly valued by restaurants and other businesses. But what are the key stats and trends driving these programs' success in the restaurant industry today? This article digs into the latest data and info to help you optimize your loyalty programs and possibly develop restaurant loyalty program ideas.

Key Statistics on Restaurant Loyalty Programs

Adoption Rates

Loyalty programs have become popular in the restaurant industry over the past 10 years. Now, use their memberships several times a month.

Post-pandemic, the growth has accelerated even more as restaurants seek ways to re-engage with their customer base and drive sales. This growth can be attributed to the recognition of the benefits of loyalty programs for customer retention and repeat business, which is part of a broader trend towards customer centricity.

Customer Participation

Customer participation in loyalty programs is high, with strong enrollment and engagement across all demographics, especially millennials. 

In 2021 alone, 54.7% of millennials were active in restaurant loyalty programs, making them the largest user group. Millennials (24-39) are known for being digitally savvy and wanting personalized experiences, and they see huge value in the tailored rewards and offers in loyalty programs. 

Impact on Revenue

Besides, data shows that about money on each transaction to maximize point earnings. Additionally, Loyalty programs have a measurable impact on restaurant revenue. 

On average, loyalty program members generate 12-18% more incremental revenue growth annually than non-members. These stats prove loyalty programs work not only to attract and retain key customer segments but can also increase the amount of dollars spent on your business's menu items. 

These financial benefits show the importance of effective loyalty programs to drive growth and stay competitive in the restaurant industry. However, it is essential to explore the emerging trends shaping restaurant loyalty programs today to understand how these programs continue to evolve and adapt and how restaurants can fully take advantage of their benefits.

Trends Shaping Restaurant Loyalty Programs

Personalization and Customization 

Personalization is dramatically changing the restaurant industry. Restaurants are using data analytics to track customer behavior and preferences and deliver rewards and offers that resonate individually. 

Personalized reward programs and offers are key to getting and keeping customers. This personalized approach enhances the customer experience builds a stronger emotional connection with the brand, and gets repeat business and loyalty.

• Subway MVP Rewards has been designed to offer a personalized discount system to its guests. Guests earn points for purchases, receive freebies on their birthdays, and receive even more additional benefits as they move through the ranks, as they use the rewards program more.

Technology Integration

Technology integration has changed how customers manage and interact with loyalty programs. The adoption of mobile apps and digital platforms has made it easier for customers to access and interact with them. These platforms not only allow customers to track their rewards and receive personalized offers but also to engage with the brand in a more convenient and streamlined way. 

• Chipotle has seamlessly integrated its mobile app and rewards program, allowing customers to earn 10 points for every dollar spent on purchases made in-store, online, or through the app, bringing them closer to rewards with each transaction.

• Costa Club is a loyalty program for Costa Coffee fans that offers a free drink for every 8 beverages bought, plus a free birthday cake and exclusive rewards via the app. The program also uses customer data to offer personalized deals and extra yearly rewards.

For restaurants and dark kitchens, technology provides valuable insights into customer behavior and preferences so they can better manage and optimize loyalty programs. However, having aseamlessexperienceacrossmultiplechannelsisalsokey to modern loyalty programs. Restaurants are now focusing on integrating online, mobile, and in-store interactions to create a cohesive customer experience.

• For example, . You can use the app to scan a QR code at checkout to earn points for every dollar spent. If you forget to scan at the register, you can scan your receipt later through the app to still receive your points.

This seamless loyalty program integration increases customer satisfaction and maximizes the rewards program's reach and effectiveness by engaging guests at their preferred channel. Looking forward to understanding the future direction of loyalty programs is essential to grasp what trends will drive customer engagement and program success.

Future Directions of Loyalty Programs

As loyalty programs evolve, two main trends are shaping their future. On one hand, AI and Machine Learning will transform loyalty programs by delivering super personal experiences. On the other hand, sustainability and social responsibility are becoming a greater part of loyalty programs as consumers value ethical practices more and more.

AI and Machine Learning

AI and machine-learning restaurants can analyze data to predict behavior and preferences so restaurants can reward and communicate with guests more precisely.

• IHOP is already experimenting with offering guests personalized menu item recommendations using AI’s advanced data analytics capabilities. The 6 additional menu options that match the order someone has already added to the cart are displayed.

• AI-driven micro-segmentation , enhancing targeting and effectiveness beyond generic offers, drawing consumers in, and increasing the number of dollars spent. 

Sustainability and Social Responsibility

Establishments are to match customer values. Some examples are discounts for using reusable containers or eco-conscious packaging. These businesses also align their loyalty programs with broader corporate social responsibility goals.

• For example, that allows customers to use their own or borrow reusable cups, places collection bins in-store, and offers a chance to win prizes or rewards for the returned cups.

• Grill’d, an Australian burger chain, has incorporated a feature called "8 and Donate" into its Relish loyalty program. After purchasing eight burgers, customers can redeem a free burger or donate one to a homeless individual through St Vincent De Paul. 

The future of restaurant loyalty programs is combining AI-driven personalization with a focus on sustainability and social responsibility. Together, these trends set the new standard for how loyalty programs can drive customer satisfaction and long-term business success. 

As restaurants use technology to become more precise with their menu items and loyalty programs, they improve the customer experience and build a deeper connection with their audience. By aligning their loyalty programs with ethical practices and broader social goals, they will resonate more with the values of today’s consumers.

Conclusion

As the percentage of establishments implementing loyalty programs grows, they become a must-have for restaurants to drive customer retention and revenue. The rise in loyalty program participation and revenue growth is a testament to how important these are in today’s competitive world. 

These programs increase customer satisfaction, spending, and repeat visits by rewarding frequent customers with points, discounts, and exclusive offers. Businesses that understand this will build deeper customer loyalty, stand out in a crowded market, and remain relevant for years to come.

In the future, loyalty programs will become more technology-driven and aligned with social and environmental goals. 

New trends like personalized rewards powered by AI and sustainability are shaping the future of loyalty programs. Personalized marketing enabled by data analytics allows restaurants to offer exactly what customers want, increasing engagement and loyalty. Promoting eco-friendly rewards and social responsibility aligns with customer values and strengthens the brand. Restaurants that get ahead of the curve and innovate will win customers' loyalty and have long-term growth and a competitive edge in the restaurant industry.

Is your restaurant ready to evolve its loyalty program to satisfy the demands of savvy and conscious consumers?