How to Set Up a Loyalty and Referral Program for Your Restaurant

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Set up Loyalty and Referral Program for Restaurants

Restaurant business owners often face many challenges and factors in running their restaurants. Many problems exist for them such as competition from other owners, framing better and affordable offers plus marketing themselves to the right people.

To have an extra edge over their competitors, restaurant owners should leverage loyalty programs to retain existing and regular customers. It has been proven again and again that loyal customers tend to generate 5x more revenue than new ones and it is 5x more economical than trying to acquire new customers. Restaurants fail to implement and run loyalty and referral programs properly since they do not customize them accordingly.


1.Decide who you want to target from your present customer base


Once your restaurant is up and running and you are clear as to who your regular customers are (from your target customer base) and how much sales is generated from them you can start getting an idea of how to structure and implement your loyalty programs. They should be fully customizable.



2.Curate a special loyalty program for them


 Now with traditional loyalty programs, that utilizes cards and physical stamps your options of being flexible with the program may be limited. A digital loyalty program is often recommended as they offer numerous advantages over the traditional. With more people having access to smart phones these days it is only wise to go the digital way. (Click here to read more about the advantages of digital loyalty programs.) Decide your budget and start curating your special loyalty program.


Loyalty programs are different and each may appeal differently to the demographic. You can have a point based rewards program that rewards both new as loyal customers according to their orders.

A visit based program can build true loyalty as it focuses more on gaining the customer’s frequency than purchasing power. Special Seasonal or Commemorative Offers work best when the schemes provide more than the other competitors.

Surprise Rewards. A free beverage or a lunch package can help one get a lot of free word of mouth marketing.

These programs should not be limited to offer information only but also be coupled with other digital marketing initiatives to make full impact.

A key factor to keep in mind is that all these offers should be attainable as the customers will chase the rewards only if they feel it is valuable after repeat purchases.

Set up Loyalty and Referral Program for Restaurants



3.Execute your loyalty program


 Once you are clear as to what your objective and plans are, execute the program. If you have chosen the digital way you already can monitor your progress via your own digital dashboard.

Do not expect any immediate returns as larger schemes take a minimum of two to three months to be properly effective. Customers also have to get the idea imbibed among themselves that your restaurant has these offers regularly and it is indeed profitable for them to be loyal.



4.See what works, take feedback and revamp your offers


 With you having the digital advantage, you have the power of data analysis. See what has worked and what can be improved. If all the factors are properly taken care of the programs should show an increase in sales as a result of the loyalty of your customers.


Staying consistent with new offers and schemes is also a contributing factor. Customers should always feel something new and exciting is waiting for them.

Most restaurants these days utilize digital loyalty and referral programs. Click here to know how you can curate such a program for your business using Loyalie. Loyalie’s advanced marketing platform allows you to run you both your loyalty as well as referral programs from a single dashboard. Your customers also can access all your offers and referrals directly through their phones using Loyalie.

One thought on “How to Set Up a Loyalty and Referral Program for Your Restaurant

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