Loyalty schemes can enable businesses to build strong relationships with existing and new customers, encourage repeat custom and a higher spend. They can also help with the issue of ‘no shows’. The key is to ensure that the offer is easy to understand and delivers rewards your target consumer value.

Research shows that customers, especially Generation Z and Millennials, value restaurant loyalty schemes. A survey from RSM UK found that 58% of Generation Z and 48% of Millennials are more likely to visit a restaurant with a loyalty programme.

Jane Pendlebuisy, CEO of The Hospitality Professionals Association Says

As Jane Pendlebuisy, CEO of The Hospitality Professionals Association (HOSPA) says “While the ‘points make prizes’ element is a great hook, the real effectiveness lies in the data. A well-run scheme allows an operator to understand their guest’s habits what they eat, when they visit and how much they spend. The days of stamping a cardboard card are fading as they don’t provide the operator with insights.”

“Loyalty schemes create a psychological contract. If you’re a “member” of a restaurant’s club, you feel a greater sense of belonging and responsibility toward that business, making you less likely to “ghost” them. You don’t stand up a friend, and loyalty schemes help turn a business into more of a friendship, rather than a buyer-supplier one,” notes Jane.

If you’re introducing a loyalty scheme, Jane’s advice is to keep it simple and digital. “The barrier to entry must be low for the customer though. If they have to fill out a long paper form, they won’t bother. A QR code scan or a simple email sign-up at the point of payment is the best way to launch.”

Several pub chains have introduced or revamped loyalty programmes as a way to bring back customers. The new app from Greene King, which owns Chef & Brewer and Hungry Horse chains, lets customers earn perks, unlock surprises and access exclusive offers whether they order at the bar or through the app. The app enables them to take part in interactive challenges like Spin to Win and Pub Match, with the incentive of winning free food and drink.

The Lounge all day restaurant group has taken a different approach. With the Lounge Passport, customers are encouraged to visit different establishments within the group rather than return to their favourite restaurant again and again. By collecting stickers from each Lounge, they earn rewards from free tapas to prosecco and exclusive merchandise.

The key to a successful loyalty scheme is consistency and communication. “You need to actively manage the communication flow”, says Jane. “Don’t spam your customers but let them know when they are close to a reward. From an operational perspective, buy-in from your staff is critical. If your front-of-house team doesn’t understand the scheme or forgets to ask guests if they are members, the system falls apart. They are your greatest ambassadors, so incentivise them to sign people up.”

“The key to a successful loyalty scheme is consistency and communication.”

Tips to Reduce No Shows

  • If customers are part of a loyalty scheme, you can confirm notifications and send personalised reminders
  • Consider rewarding attendance – points given if the guest attends, bonus points for
    attending several reservations in a row Make it easy to cancel
  • Take credit card details for peak times
  • Some restaurants issue cancellation fees and take deposits