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A great loyalty programme can turn casual diners into steadfast regulars. It’s like having a secret sauce that keeps people coming back for more—provided you’ve blended the right ingredients. Yet too many restaurant owners invest in loyalty initiatives that don’t live up to expectations. They see minimal uptake, poor redemption rates, and customers who shrug off the very perks intended to delight them.
How can something so promising falter? Often, it’s because a handful of common, avoidable mistakes creep in. According to some industry analysts, up to 45% of new loyalty members never redeem even a single reward—a staggering statistic that highlights the need for well-designed programmes. In this article, we’ll look at the frequent missteps restaurants make and offer practical fixes. Consider it your guide to creating a loyalty scheme that consistently attracts new fans and keeps your regulars feeling appreciated.
One frequent blunder is jumping into a loyalty programme without a clear objective. Do you want to increase weekday footfall? Boost average spend on desserts and drinks? Encourage takeaway orders? Vague intentions—like “we want more loyal customers”—often lead to uninspired perks that don’t resonate.
For instance, if your aim is to attract more families on a Tuesday night, a specific reward such as “free kid’s dessert on Tuesdays with any adult main” might do the trick. Or perhaps you’re keen to boost sales of a new plant-based dish, so you reward guests every time they order it. The key is to pinpoint your goals and ensure your rewards directly support them. A targeted approach often feels more relevant to your customers, increasing the odds they’ll join and stay engaged.
Sometimes, restaurateurs assume the more elaborate the loyalty structure, the better. But if your customers need a manual just to figure out how to earn and redeem rewards, you risk losing them at the outset. Loyalty programmes flourish when they are intuitive—something a busy diner can understand at a glance.
A convoluted points system can feel like deciphering a mystery: “Earn 17 points for every £12 spent on starters, but only on weekdays after 4pm.” While that might look clever on paper, it can cause confusion at the table. If you’re noticing blank stares from guests when you explain how it all works, it’s time to simplify. Think straightforward thresholds or easy stamp-based concepts in digital form. For example, “Collect 10 stamps, get one main meal free” is about as user-friendly as it gets—especially if the ‘stamps’ are tracked via smartphone instead of a flimsy punch card.
In an era where diners book tables with apps, check menus online, and share restaurant experiences on social media, ignoring digital tools for your loyalty programme can be a fatal oversight. According to a 2022 report from Mintel (source), 70% of UK consumers prefer using digital or mobile-based loyalty schemes over traditional paper-based methods. That’s a clear indication that convenience and instant access rule the day.
Digital integration can also reduce errors, speed up payments, and sync seamlessly with your existing POS system. For instance, if you use sunday to facilitate QR code payments and encourage Google reviews, it’s a logical step to incorporate your loyalty programme into that same platform. Customers scan, pay, tip, see their points balance, and—if they’re inspired—leave a review, all in one smooth transaction. By making the process effortless, you avoid the dreaded scenario of staff trying to push sign-up forms at an already busy till.
We’ve all received a generic “Thanks for your loyalty” email that doesn’t quite hit the mark. People crave experiences that acknowledge their personal preferences, whether it’s a favourite dish or a consistent dietary choice. A “one-size-fits-all” approach can leave diners feeling unvalued. Even a simple gesture like sending a birthday reward can go a long way—especially if the perk is something the customer loves.
This is where data (and a bit of analysis) becomes your ally. For instance, if you notice that a segment of your customers consistently orders pasta, create a special reward that nudges them to try your newest pasta dish. They’ll feel seen and appreciated, while you get the chance to highlight a menu item you’re proud of. Over time, these touches build a meaningful rapport.
No matter how sleek your loyalty app, your staff members are the ones who’ll introduce it to diners. If they’re lukewarm about the programme—or worse, find it a hassle—your sign-up rate will nosedive. The same goes for redemption: customers who don’t quite understand how to claim their rewards will look to your servers for answers.
Make sure your employees understand the programme inside and out. If that requires a short, fun training session, do it. Show them how a successful loyalty scheme can lead to happier patrons, bigger tips, and a busier restaurant overall. Some restaurants even reward their staff for enrolling the most customers or garnering the highest loyalty-related praise from diners. When your team genuinely believes in the scheme, that enthusiasm becomes contagious.
Ever visit a restaurant that claims to have a loyalty programme, yet there’s no visible sign of it? It’s like baking a beautiful cake and forgetting to tell anyone it’s ready to eat. No matter how good your perks are, people won’t bite if they don’t know the perks exist.
Promotion doesn’t have to be flashy or expensive. A tasteful mention on your menu, a small tabletop sign, or a quick server prompt can do wonders—“By the way, did you know you can earn free starters with our loyalty app?” You can also spread the word through your social media channels, email newsletters, or community events. Let your loyal customers become your ambassadors by encouraging them to share the word with friends. When done well, your loyalists may bring in new faces, drawn by the promise of rewards and a welcoming atmosphere.
Get the “sweet spot” for rewards wrong, and your loyalty scheme may flop. Offer too little (e.g., a 5% discount after spending £200), and people will hardly notice. Go too big (e.g., a free main meal after just one visit), and you might hurt your margins or attract deal-seekers who vanish once they claim the perk.
A balanced approach is crucial. For example, you might offer a free dessert after three visits and a larger reward, like a complimentary bottle of wine, after ten visits. Tiered structures let you manage costs while still giving customers an incentive to keep returning. If you’re unsure how to price rewards, start small and adapt based on redemption rates. Observe how frequently diners reach each milestone, then tweak the thresholds to align better with your revenue goals.
Some loyalty programmes run quietly in the background, unmonitored and unmeasured. That’s akin to running a kitchen without checking whether your dishes actually taste good. If you’re not tracking sign-ups, redemptions, average spend, or customer feedback, you’re operating in the dark.
Implement regular check-ins—monthly, quarterly, or whatever fits your restaurant’s rhythm. Study how many new members you gain, how many come back, and how often they redeem rewards. Compare the average spend of loyalty members versus non-members. If loyalty members spend 15% more on drinks or are more likely to try specials, that’s valuable info you can leverage. Keep refining your scheme based on hard evidence, rather than guesswork.
No programme is perfect. Even the most sophisticated platforms occasionally have hiccups, or some rewards that flop. The essential thing is to hear out customer grievances. Whether it’s confusion over how to claim a reward or annoyance at too many promotional emails, feedback points you toward improvements. Encourage diners to speak up, offer them a straightforward channel to do so, and show you’re listening by making real changes.
Sometimes negative feedback can highlight deeper issues. If multiple customers complain that your discount code rarely works online, it’s not just about fixing a technical bug—it’s also an opportunity to build trust by responding swiftly. An occasional apology or a bonus reward for inconvenience can turn a frustrated guest into a loyal advocate.
Remember when certain dishes were all the rage, only for them to vanish after a season? Tastes evolve, and so do customer expectations. Loyalty programmes can suffer the same fate if they remain static for too long. What works brilliantly this year might fall flat the next, especially if you’re not updating rewards to suit new trends or shifting dining habits.
Consider weaving in seasonal offers or special perks tied to limited-time menu items. Keep an eye on broader dining trends—like the rising popularity of plant-based options or zero-waste cooking—and incorporate them into your rewards strategy. Refreshing your programme every so often also gives you an excuse to promote it anew, catching the attention of both new and returning patrons.
A loyalty programme isn’t just a mechanism for discounts. Done well, it can be a pillar of your restaurant’s brand experience. When guests feel part of an inner circle or an exclusive club, that emotional connection often extends beyond the dining room. They’re more likely to engage with your content on social media, recommend you to friends, and share glowing reviews.
To create this deeper bond, you can inject some of your restaurant’s personality into the rewards. For instance, if you run a family-friendly Italian eatery, consider offering a “cook with the chef” experience once members hit a certain milestone. It’s a unique perk that resonates with the heart of your brand—love of food, family, and community—and goes far beyond generic discounts or loyalty points. Emphasising these personal touches can differentiate your loyalty scheme from the generic programmes offered elsewhere.
Digital payment solutions such as sunday enable customers to scan a QR code, split the bill with their table, leave a tip, and even post a Google review in just a few taps. By embedding your loyalty scheme into that flow, you minimise the friction of enrolment and reward tracking. You can also quickly gather data about which items people order most, when they tend to redeem rewards, and how often they tip.
This direct integration means fewer missed opportunities. After all, if a diner is already scanning a code to settle up, they’re far more likely to opt in to your loyalty programme then and there—particularly if the sign-up is effortless. That data can then feed back into your marketing efforts, helping you tailor promotions and target specific customer segments more effectively.
A loyalty programme can be a game-changer, offering benefits that go well beyond steady revenue. It can deepen your bond with the community, make your restaurant stand out from the competition, and offer valuable insights into what your customers crave.
Yet common mistakes—unclear objectives, overly complex structures, poor promotion, lack of personalisation, neglected staff training—can undermine your best intentions. By tackling these pitfalls head-on, you position your restaurant for long-term success. Below are a few simple reminders to guide you forward:
Successful loyalty schemes are rarely accidental. They blend thoughtful strategy, clever technology, and a dash of creativity to keep diners engaged. It’s a process—one that evolves as your restaurant grows, your menu changes, and new dining habits emerge.
If you’re curious about what industry experts say on the topic, take a look at Big Hospitality UK (source) for the latest trends and insights. You might also explore Allegra Strategies (source) to see how consumer behaviours in the foodservice sector are shifting.
Armed with the right understanding of what works and what to avoid, you can shape a loyalty programme that not only rewards your customers but also reinforces the essence of your brand. After all, nurturing genuine loyalty is about so much more than points and freebies—it’s about creating experiences people love, remember, and want to share with others.
By steering clear of the pitfalls discussed, your restaurant can transform a simple loyalty scheme into a strategic asset that delights diners, builds trust, and keeps your business thriving—even in a fiercely competitive market. The next time a guest walks through your door, they won’t just be another paying customer. They’ll be part of your extended restaurant family, eager for the next delightful reward you have in store.
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