A restaurant loyalty program works when joining takes seconds, the reward is worth chasing and costs less than the extra visits it brings. Pick one mechanic (points, stamps, tiers or cashback), give back 3 to 10% of spend in value, let guests join with a phone number or a wallet card, and track repeat rate and redemption every month.
Most restaurant loyalty programs fail for the same reasons: signing up is slow, the reward is too small to notice, and nobody checks whether it changes behaviour. This guide covers the decisions that matter, in the order you should make them. It is written by TheCoins, which sells loyalty software; the steps apply whichever tool you use.
1. Choose one mechanic
| Mechanic | How it works | Best for |
|---|---|---|
| Points | Guests earn points per pound or riyal spent and redeem them for food or a discount | Restaurants with varied order values |
| Stamps | Every visit or item earns a stamp; a full card earns a free item | Cafés and bakeries with frequent, similar purchases |
| Tiers | Guests unlock better perks as they spend more over a period | Brands with a group of very frequent regulars |
| Cashback | A share of each bill goes back as credit for the next visit | Busy casual dining where speed matters |
| Card-linked | The payment card is recognised at the terminal; no sign-up step | Places where most guests pay by card |
Start with one. Combining points, stamps and tiers on day one confuses staff and guests. You can add tiers once you know who your regulars are.
2. Decide how much to give back
Set the reward value as a share of spend, then check it against your margin. A worked example: a guest spends EGP 400 per visit and your food cost is 30%. If you return 5% of spend, the reward is worth EGP 20 per visit at menu price, but it costs you about EGP 6 in food. If the program moves that guest from two visits a month to three, you gain one EGP 400 visit for EGP 18 of reward cost across the three visits.
- 3 to 5% of spend suits most casual dining and cafés.
- Up to 10% can work for high-margin items such as drinks and desserts.
- Rewards in food (a free coffee or dessert) cost you less than their menu value; discounts cost you the full amount.
- Use your own figures: average bill, food cost and current visits per month.
3. Make joining take seconds
Every extra step loses guests at the counter. The fastest options are a phone number at checkout, a QR code on the receipt or table, or an Apple Wallet card added in one tap. Asking guests to download an app before their first reward is the slowest route, and many will not.
4. Connect it to how you already sell
Points should work the same at the counter, on your ordering link and in your app. If guests earn in the branch but not online, or the reverse, they stop trusting the balance. Check that the program connects to your POS and to your online ordering before you launch.
5. Bring guests back with messages
A program nobody remembers does nothing. Send a short message when a reward is close, on birthdays, and when a regular has not visited for a few weeks. In Egypt and the Gulf, WhatsApp usually gets more attention than email; keep messages useful and let guests opt out.
6. Measure four numbers every month
| Metric | What it tells you | How to calculate |
|---|---|---|
| Repeat rate | Whether members come back more than before | Members with 2+ visits in the month ÷ active members |
| Visit frequency | How often members visit | Member visits ÷ active members |
| Redemption rate | Whether the reward is attractive | Points redeemed ÷ points issued |
| Reward cost | What the program costs you | Cost of rewards given ÷ member sales |
A redemption rate close to zero usually means the reward is too far away or too small. Compare members with non-members over the same months to see the real effect.
Common mistakes
- Launching without training the counter team to ask every guest.
- Rewards that take ten or more visits to reach.
- Points that expire too quickly or without warning.
- Running loyalty only on delivery apps, where the platform keeps the customer data.
- Never changing the offer after launch.
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