In the crowded foodservice marketplace, one great meal may not be enough to get customers coming back, and that’s why loyalty is crucial for restaurant success. Restaurant loyalty programs have evolved from a transactional value proposition to building connection, and it’s a way for operators to foster long term, profitable, meaningful relationships with their customers. Research shows that 60 per cent of restaurants now offer some sort of loyalty program, and 47 per cent of restaurant guests are members of at least one program.
Competition is fierce for operators to get it right. Diners have raised the bar on loyalty programs, driving change and improvement from their favourite restaurants.
Personalization
Today’s loyalty programs offer detailed user insight allowing operators to really get to know their customers and provide programs that keep them engaged, motivated, and coming back. Personalization allows restaurateurs to offer customized promotions, celebrate customer milestones, simplify operations with order history and preferences, and offer tailored experiences to targeted customers. This type of relationship building turns loyalty that was once built on discounts into long lasting connections with your customers.
Tools
Gone are the days of a simple punch card offer ‘buy 9, get one free’ for most restaurants. Diners are looking for simplicity from their loyalty programs, and that means offering them across various platforms. Consumers spend about five hours a day on their phones, so making it easy and simple for mobile use is a non-negotiable.
Experience
Technology and personalization allow operators to offer an elevated dining experience through their loyalty programs. Rather than a one-size-fits-all marketing program, customers can enjoy an experience that speaks to their habits and preferences, and focusing on the experience gives operations an advantage over the competition. Value is a common these for today’s consumers, but it’s tied to perceived value, rather than simply lower prices. Curating offers that combine financial value with elevated experiences can win the hearts of restaurant customers. Offering loyalty members early access to events, priority seating, a free ‘favourite dish’ based on their history, extra tableside attention, or better delivery options can all help set a restaurant apart, leveraging loyalty to improve the guest experience.
Today’s loyalty programs
Loyalty customers spend about 20 per cent more than non-loyalty customers, so operators can boost the bottom line by creating a program that works for their guests. Two notable companies have recognized the evolution of today’s loyalty programs and have revamped their existing programs to address diner demand. At the end of 2025, Subway re-launched its Sub Club, a loyalty program that allows guests make purchases to earn rewards, and is still working on refining the experience. Starting with offering guests one free 12-inch sandwich with the purchase of three 12-inch or six 6-inch sandwiches, it is being re-vamped again, starting April 1 to include a points system. The program also incorporates personalization, like offering a free birthday cookie to members. This loyalty program also offers exclusive perks available only on the loyalty app.
Starbucks recently announced a new rewards program, launching on March 10, designed to focus on more memorable experiences for members. The program features three tiers (green, gold, and reserve), each offering distinct benefits. The new program offers more appealing benefits for members, such as faster star-earning capabilities, non-expiring stars, free drink modifications, exclusive travel opportunities, and more. The revamped program incorporates customer feedback and seeks to “deepen connection while incentivizing members to stretch for each subsequent level of membership, creating the potential to drive increases in frequency and transactions.”
These examples show the importance of listening to your customers and adjusting your loyalty program to reflect their wants and needs for maximum restaurant return.
As loyalty programs continue to evolve, and diner demand shifts, restaurants will need to look at customer needs and wants to offer a program that focuses on value, personalization, and experience for successful membership transactions.
