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Restaurants face more competition than ever. To keep customers coming back, businesses need a strategy that goes beyond great food and service.
That’s where restaurant loyalty programs help. Rewards programs encourage repeat visits, boost customer retention, and increase customer lifetime value by offering reward points, discounts, and exclusive perks.
With technology advancing, restaurant loyalty software makes it easier to manage digital loyalty programs.
Restaurants can now offer more incentives to customers through a points-based loyalty program, a tiered system, or a mobile app that provides personalized rewards.
In this article, you will learn how restaurant loyalty programs work, discover some of the best options available, and find tips for choosing the right platform for your business.
A restaurant loyalty program is a reward system designed to retain customers and encourage repeat visits.
These programs provide loyal customers with incentives such as loyalty points, free food, birthday rewards, and exclusive discounts in exchange for their continued business.
In the past, restaurants used physical punch cards to track customer visits and purchases.
Today, digital loyalty programs have replaced these outdated systems. Customers can earn points and redeem rewards through a mobile app or website.
These modern systems also collect customer data to help restaurants create smart campaigns that align with customer preferences.
Loyalty programs follow a simple structure: customers earn points when they spend money, then redeem rewards once they earn enough points.
However, the structure varies based on the type of loyalty program:
Below are some of the successful loyalty programs that have transformed customer retention and customer engagement.
The Starbucks rewards program keeps loyal customers engaged by offering loyalty points (Stars) for every dollar spent.
Customers can redeem rewards for free drinks, food, and exclusive items. The mobile app makes it easy to track reward points, order ahead, and receive customized offers.
Personalized rewards keep loyalty program members actively participating. The program tracks customer preferences and sends targeted promotions based on previous purchases.
Starbucks also boosts customer engagement with birthday rewards, bonus Star challenges, and limited-time promotions.
Starbucks’s loyalty program works due to the following:
Subway’s tiered loyalty program rewards customers based on spending levels.
Members start at a base level and move up to Pro, Captain, and All-Star tiers, unlocking better rewards at each stage.
Customers gain points (10 per dollar spent) and gain extra benefits when they place orders through the app. Subway also encourages new customers to engage immediately by giving 250 bonus points upon sign-up.
Customers feel motivated to keep earning because higher tiers unlock exclusive perks, such as free meals, birthday rewards, and discounts.
What makes Subway’s program effective:
Domino’s focuses on customer retention by linking its rewards program to online ordering.
Customers earn points with every digital purchase, bringing them closer to a free pizza after a set number of orders.
Showing customers their progress keeps them engaged and encourages repeat purchases.
Notifications and exclusive online promotions further boost engagement, keeping customers connected to the brand.
Why Domino’s rewards drive loyalty:
Below are 10 top-rated solutions for setting up a restaurant loyalty program that keeps loyal customers engaged.
Many restaurant owners hesitate to invest in a branded app with a loyalty program because custom development often costs over $15,000.
Buildify changes that by offering a user-friendly website and app with built-in loyalty features for just $399 per month.
With no long-term contracts or hidden fees, Buildify provides everything restaurants need to grow, from a loyalty platform to online ordering integration.
The key features include:
For $399/month, you can get a restaurant website, a custom mobile app, and integrated loyalty programs.
UpMenu has a built-in restaurant loyalty program that lets customers gain points or stamps for both in-store and online orders. These loyalty points can be exchanged for discounts, free meals, or other special offers.
Beyond that, UpMenu includes a restaurant website builder that helps businesses create a digital presence without coding skills.
The system also provides a QR code menu for browsing offerings and placing orders digitally.
For restaurants that want deeper customer engagement, UpMenu offers the option of launching a branded mobile app that gives customers direct access to rewards and ordering options.
Pros
Cons
The Basic Plan costs $49 per month for each location. The Standard Plan is priced at $89 per month per location, while the Premium Plan costs $169 per month per location.
Businesses can also add a loyalty program for an additional $19 per month.
Toast offers a restaurant loyalty software solution that integrates with its POS system. With Toast, diners earn points with every purchase and can easily redeem rewards during checkout.
The system simplifies redeeming rewards, making it easier for loyalty program members to enjoy food rewards and discounts.
Since Toast operates as a cloud-based platform, restaurant owners can access data from anywhere, allowing them to monitor customer spending, track points, and analyze customer preferences.
Pros
Cons
The Starter Kit is free and works for small restaurants with one or two terminals. The Point of Sale plan costs $69 per month and includes core features with flat-rate processing. Meanwhile, the Build Your Own plan has custom pricing for businesses that need advanced features.
Punchh focuses on customer engagement and data-driven marketing. It allows customers to collect points, redeem premium rewards, and make payments through a branded app.
The system gathers customer data from multiple sources to help businesses understand spending habits and create targeted marketing campaigns.
Punchh integrates with third-party marketing tools for automated email and SMS promotions. It also includes analytics that help businesses track loyalty program members, monitor campaign success, and adjust the rewards system for better performance.
Pros
Cons
Punchh does not list its pricing publicly.
Glue Loyalty allows restaurants to use an automatic or manual card punch to simplify loyalty tracking.
The platform includes a branded loyalty club app where customers can monitor their reward points and access promotions.
With built-in data tracking and analysis, Glue Loyalty helps businesses categorize loyalty members into different tiers based on spending behavior.
Restaurants can send targeted promotions through multiple channels, including SMS, web, and email. The system also includes content creation tools that help businesses develop marketing campaigns to increase repeat visits.
Pros
Cons
The First Look plan is free, while the Growth plan costs $88 per month.
The Autonomous Club plan is available for $127 per month. For businesses needing POS integration, the Autonomous Club+POS plan is priced at $159 per month.
Movylo allows restaurants to set up loyalty programs where customers can collect points with every purchase.
By analyzing sales data, Movylo also estimates potential revenue loss from inactive rewards members and provides strategies to re-engage them.
Beyond loyalty management, Movylo includes customer list-building tools to help businesses grow their customer base. Restaurants can also create customized loyalty promotions and manage customer relationships through an integrated CRM system.
These features help businesses attract new customers while keeping existing customers engaged with automated incentives.
Pros
Cons
Movylo does not publicly disclose pricing.
Paytronix supports multiple types of rewards programs for restaurants and convenience stores.
Businesses can choose from various loyalty program models and offer customers multiple ways to sign up, including SMS, in-app registration, and POS-based enrollment.
The platform makes it easy to manage reward points, track spending habits, and send targeted promotions based on valuable customer data.
Patronix also includes an integrated CRM system, online ordering capabilities, and guest payment solutions, giving businesses a full suite of tools to manage their loyalty programs efficiently.
Pros
Cons
Pricing details are not publicly available.
Loyalty Gator is an easy-to-use restaurant loyalty software that allows businesses to create a loyalty program for customers and employees.
Setting up a loyalty program with Loyalty Gator requires minimal effort. The system integrates with existing operations, allowing businesses to launch card-based or cardless campaigns.
Every loyalty campaign is fully customizable, making adjusting rewards and promotions based on customer preferences easy.
The platform also includes client referral programs to attract new buyers while keeping frequent customers engaged.
Pros
Cons
The Bite Plan costs $59 per month, the Snack Plan costs $88 per month, and the Meal Plan costs $179 per month.
Spoonity helps businesses run digital loyalty programs while improving customer satisfaction. The platform customizes loyalty and gift programs to align with a restaurant’s business goals and buyer preferences.
By using business intelligence and analytics, Spoonity helps restaurants track data, measure campaign performance, and optimize rewards for better results.
The platform also supports online ordering, integrating seamlessly with web, app, and in-store experiences.
Pros
Cons
Pricing details are not publicly available.
PosIQ integrates with POS systems to track consumer data and spending patterns.
The platform helps businesses understand purchasing behavior while offering a rewards program that issues loyalty cards and personalized offers based on previous transactions.
By analyzing customer selections, restaurants can create targeted promotions that increase customer engagement and encourage repeat business.
PosIQ goes beyond basic loyalty programs by offering guest tracking, detailed reporting, and deep POS integration. These features allow restaurants to manage customized loyalty programs while gaining insights into customer retention strategies.
Pros
Cons
The price starts at $99 per month.
Selecting the best restaurant loyalty software depends on factors like business size, customer habits, and integration needs.
With so many options available, understanding the following factors can help you make an informed decision:
Every restaurant attracts a different type of customer, and the best loyalty program should match their preferences.
A fast-casual chain may benefit from a simple points-based system, while a fine-dining establishment might see better engagement with a tiered membership program that offers exclusive perks.
Analyzing customer habits, such as order frequency, average spending, and preferred ordering methods, helps determine the most effective rewards system.
Restaurant loyalty software varies in cost from basic subscription-based services to fully customized platforms with advanced features.
Some providers charge flat monthly fees, while others offer tiered pricing based on features, locations, or transaction volume.
Compare pricing plans to ensure the platform fits within your budget without sacrificing essential functionality.
A seamless connection between your loyalty software, POS system, and online ordering platform simplifies program management.
Look for a system that automatically tracks purchases, issues rewards, and updates customer accounts in real time.
Platforms with deep POS integration reduce manual data entry and errors while improving customer experience.
As your restaurant grows, your restaurant loyalty software should be able to expand with it.
Some software solutions offer flexible reward structures, multiple location support, and branded apps.
Customization options allow you to tailor offers, set unique earning rules, and adjust promotions based on business needs.
Some platforms provide 24/7 assistance, while others may have limited availability.
Look for providers that offer onboarding support, troubleshooting help, and resources like training materials or live chat assistance.
Many loyalty apps require expensive custom development or complicated integrations that take months to implement.
Buildify provides a ready-to-use website and app in less than 10 days, complete with a built-in loyalty rewards system that helps restaurants drive repeat business.
Unlike third-party platforms that control buyer data, Buildify lets you maintain direct relationships with your customers.
Buildify also includes automated marketing tools, such as notifications and personalized promotions, to encourage customers to return. Secure payment options ensure a smooth checkout process, so it’s easy for customers to place orders and claim rewards.
Start today and have your loyalty program up and running in just ten days. Book a call now and keep your customers coming back with Buildify!
Loyalty programs reward customers with points, discounts, or exclusive perks, encouraging them to return more often. These programs build long-term loyalty and increase overall spending by offering personalized incentives based on buyer preferences.
Loyalty software tracks a customer’s purchase history, order frequency, and preferences to create personalized promotions. This data helps restaurants optimize their rewards system, run targeted marketing campaigns, and adjust their offerings based on what customers buy most often.
Yes, even small restaurants can benefit from a loyalty program. A well-designed app helps build a loyal customer base and boosts revenue without requiring a large marketing budget. Many affordable loyalty software offer simple, automated solutions that work for businesses of all sizes.
Promote your loyalty program through in-store signage, social media, email marketing, and notifications. Training staff to inform customers at checkout and offering bonus rewards for early sign-ups also increases adoption. For maximum engagement, highlighting the program on your website and online ordering platform ensures customers know about the benefits.