How to Turn Occasional Diners into Lifetime Regulars with Loyalty Programs

Written by Justine Nightingale
Wednesday, May 14, 2025 at 08:00am CDT

According to Metrobi, “Loyalty program members visit restaurants 20% more frequently than non-members.” Even more compelling, Metrobi also found, “Customers would increase their spending at a restaurant by 35% if it offered a compelling loyalty program.”

Those are some pretty compelling statistics, so you can see how important it is to turn occasional diners into lifetime regulars with loyalty programs. In this article, we look at why rewards matter and how to go about setting a program up.

Customer Loyalty is Key

You already know the restaurant landscape is crowded and competitive. How can you stand out? You stand out and above the competition with good food, amazing service, and a solid customer loyalty program. (tweet this)

While your occasional diners bring in short-term revenue, you want to ramp up and increase your repeat business. Why? It’s the loyal, returning customers who generate consistent cash flow for your restaurant. They are often your brand ambassadors as well, sharing your restaurant with family, friends, and co-workers. Your loyal customers are key to your long-term profitability.

One of the most effective tools to convert your sometimes-diners into lifetime regulars is a well-designed loyalty program.

The days of the punch card are gone. For many restaurants, you have access to a loyalty program right through your point of sale system or digital platforms. With a well-crafted strategy, you can market to your customers on an ongoing basis as well, strengthening the customer relationship.

Ultimately, you’ll increase the rate at which they dine with you, engage your customers, and increase your revenue.

Why Loyalty Programs Matter

According to a report by Bain & Company, if you can raise your customer retention rates by even 5%, you can boost your profits by at least 25%.

Loyal, repeat customers:

• Spend more per visit.
• Return more frequently.
• They are more likely to refer others to your restaurant.

Diners have endless options to choose from in your community. In addition, their attention spans are limited. You can cut through the noise and clutter with your unique loyalty programs. The bonus? You have loyal customers who return again and again.

More than just discounts, effective loyalty programs build emotional engagement. When you reward your customers, they’re more likely to choose your restaurant over competitors. (tweet this)

Step #1: Set Goals

Like all marketing, your successful loyalty program starts with a clear objective. What do you want to achieve?

Some common goals include:

• Increasing customer visit frequency.
• Boosting average ticket size.
• Enhancing customer data collection.
• Promoting new menu items or events.
• Encouraging social media engagement and shares.
• Getting new reviews.

First, you want to define your goals. Then, you can create a rewards program that incentivizes the behaviors that matter most to your restaurant.

Step #2: Choose the Right Loyalty Program Model

There are several types of loyalty programs to choose from. You want to pick the right model based on your restaurant, your goals, and your capacity to take care of your guests.

1. Points-Based Program

Your customers earn points for each dollar they spend. They can redeem their points for rewards like free items, discounts, or exclusive experiences.

This model works well for restaurants that have frequent transactions and repeat customers.

2. Tiered Program

The more your customers spend at your restaurant, the more benefits they get. For example, once they spend $200, they get a coupon for 20% off an appetizer. At $500, they get a free appetizer.

This approach taps into status-driven motivation and is ideal for higher-end or fine-dining establishments.

3. Visit-Based Reward

These programs reward customers based on the number of visits rather than the amount spent.

This can be especially effective for cafés, casual dining spots, or lunch-focused venues.

4. Paid Membership

Some restaurants offer VIP clubs with a monthly or annual fee in exchange for perks like priority reservations, complimentary drinks, or members-only events.

This model generates upfront revenue while appealing to your most dedicated patrons.

5. Gamified Program

Adding an element of fun, like digital scratch-offs or challenges, can boost engagement, especially among younger demographics.

Regardless of the type of loyalty program you pick, do make sure that your program is simple, transparent, and valuable.

Step #3: Leverage Technology

Technology powers modern loyalty programs. This makes them more efficient for restaurants and more convenient for customers.

Several platforms offer robust loyalty management systems. Do a search online, and you’ll find quite a few.

Many platforms also integrate with your POS system so you can:

• Track points in real-time.
• Automate reward distribution.
• Segment customer lists.
• Market to your customers.
• Personalize promotions.
• View your performance analytics.

Mobile apps are especially powerful tools for reward programs. Your customers can enroll in your app and track their progress. You can even send them specials right to their phone.

With a mobile app, you also have access to a goldmine of data to inform your marketing strategy and menu development.

Also, SMS and email-based programs are highly effective and cost-efficient.

Step #4: Personalize the Experience

One-size-fits-all rewards don’t keep customers engaged. Personalize your loyalty program so each customer feels special.

You can start by collecting relevant customer data such as:

• Purchase history
• Visit frequency
• Favorite dishes or beverages
• Birthday or anniversary dates

Use this information to craft tailored offers like:

• A free dessert on their birthday
• Double points on the items they order most
• Early access to new menu items
• Custom thank-you messages after a certain number of visits

Personal offers make your restaurant customers feel seen and appreciated, and in turn, they’re more loyal to you.

Step #5: Train Your Staff

As you train your staff, don’t forget to teach them about your loyalty program. To get their buy-in, consider incentivizing them for every new customer they sign up.

Then, teach your staff how to use the loyalty program so they can help enroll your customers and promote its benefits.

You also want to make sure your staff has visual signage to use. Have information about your loyalty program at your host stand, the bar, checkout area, in a table tent, on receipts, and menus. Do be sure to have a sign-up on your website and info on your social media channels.

Step #6: Measure, Adjust, and Evolve

Like all marketing, you want to regularly track its performance.

Consider the following metrics:

• Enrollment rate
• Repeat visit rate
• Average spend per customer
• Redemption rate of rewards
• Customer lifetime value

Ask your customers how they feel about your rewards program. Refine your rewards structure if needed. Consider the user experience. Think about adding new incentives periodically.

Loyalty Programs are a Long Game

Transforming occasional diners into lifetime regulars doesn’t happen overnight. You must be consistent, offer value, and be genuine.

The overall goal is to get your customers to return, build a relationship with them, and even create brand ambassadors. This way, your success is even more assured.

Make your restaurant the “usual” destination for customers by rewarding them and personalizing their perks. Restaurants are constantly battling for attention, and your strategic loyalty program gives you a competitive edge. You aren’t just rewarding spending. You’re rewarding relationships and loyalty.

Whether you operate a cozy neighborhood café or a multi-location dining brand, investing in a loyalty program is one of the smartest moves you can make to ensure long-term growth. Get started today!

Is your website ready to showcase your loyalty program? Can visitors sign up right on your website? At Restaurant Engine, we can create a website for you that highlights your customer rewards program. Your website is the centerpiece of your online marketing, and it needs to look beautiful and perform well. You can also count on us to create an amazing website that is optimized for SEO and works across all digital platforms. Let us help you make the perfect site that draws customers in, improves customer engagement and your conversion rate, and enables you to grow your new business using website data!  

Are you ready to take your restaurant to the next level with a new website?

Get your free website consultation today!

Images: Jason Leung and Mitili Mitili on Unsplash

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