These days, getting customers to come back to your restaurant isn't easy. There are more options than ever, and people often order food online or through apps instead of walking in. Advertising is expensive, and it's hard to know if it's even working. But here's something important- it's much cheaper to keep a regular customer than to find a new one.

The numbers behind repeat business are just as stark. Industry data shows that 60 % of a typical restaurant's revenue already comes from guests who have dined with you before. And diners are telling us what it takes to stay loyal- 78 % say they're more likely to choose a restaurant where they can earn points, even if it's less convenient. Put simply, a well-designed dining rewards program is no longer a nice-to-have perk - it's the engine that turns first-timers into profitable regulars.

A good dining rewards program helps build steady business. But setting one up the right way takes a bit of planning. You need to know what you want it to do, what it will cost, and how to make it work smoothly with your current setup. This guide will help you figure all that out - step by step, without the stress.

Before you start picking a dining rewards app or deciding how many points to give out, it's important to take a step back and ask- Why am I doing this? What problem am I trying to fix?

Every restaurant is different, and rewards programs should match your specific needs. Some owners want to bring back more regulars. Others want to increase the average order size. Some might be trying to compete with a new restaurant that just opened nearby. Whatever your reason is, it's important to be clear about it from the beginning.

Here are a few common goals restaurant owners have when setting up a rewards program -

1. Increase repeat visits - Encourage people to return more often.
2. Grow customer spending - Get guests to spend a little more each visit.
3. Collect customer data - Learn who your best customers are and how often they visit.
4. Build a contact list - Use rewards signups to grow your email or text list for promotions.
4. Stand out from competitors - Offer something unique that keeps you top-of-mind.

Knowing your main goal will help you make smarter decisions. For example, if you want more repeat visits, you might set up a buy 5 meals, get 1 free program. But if your focus is on increasing spend, you could offer points for every dollar spent and give rewards at higher spending levels.

Try to pick just one or two goals to focus on. If you try to do everything at once, the program can get too complicated - for you and your customers.

Also, make your goals specific. Instead of saying I want more loyal customers, try something like, I want to increase repeat visits by 20% in the next three months. This makes it easier to measure progress and see if the program is working.

When your goal is clear, every other part of the program - from how it's set up to how it's promoted - gets easier to figure out. Don't skip this step. A clear goal is the foundation for a rewards program that actually works.

It's easy to look at a loyalty program and focus only on the monthly subscription fee. Maybe it's $79, $149, or even free with certain software. But that number doesn't tell the full story. Before you jump in, it's important to understand all the costs involved - because they add up quickly, and you don't want surprises.

Let's break it down

1. Platform or software fees
This is the cost most restaurant owners notice first. It's the price you pay each month to use the loyalty program software. Some providers charge per location, per user, or based on your sales volume. These can range from $50 to several hundred dollars per month, depending on features.

2. Rewards and discounts
These are the actual perks you give your customers. Whether it's a free appetizer, a percentage off, or a buy-one-get-one-free deal, those items still cost you money. You'll want to figure out how much these rewards eat into your profit margins. A $10 free meal might only cost you $3 in food cost, but if you give out 100 of them a month, that's $300 gone from your bottom line.

3. Staff training and time
You'll need to spend time showing your team how the program works and what to say to customers. If your program is confusing or the staff isn't confident explaining it, customers won't use it. That leads to lost opportunities and wasted effort.

4. Integration with your current systems
If your loyalty program doesn't work smoothly with your point-of-sale (POS) system or online ordering tools, you may need to pay extra for custom setup - or worse, you'll end up managing two disconnected systems. That means more time spent tracking rewards manually, which can lead to mistakes and frustrated customers.

5. Marketing and signage
You'll need signs, menus, table tents, or digital promotions to let customers know the program exists. While this cost isn't huge, it's still something to plan for - especially if you want the program to succeed.

Don't just ask, What does the software cost? Ask, What will this program actually cost me each month, all-in? When you look at the full picture, you can make smarter decisions and avoid surprises down the road.

When you decide to launch a dining rewards program, one of the most important things to consider is how well it will work with the systems you already use. If your rewards program doesn't fit smoothly with your current setup, it can cause more problems than it solves. That's why seamless integration is absolutely necessary.

Most restaurants rely on a few key tools- a point-of-sale (POS) system, online ordering platforms, payment processing, and sometimes reservation software. If your dining rewards program can't connect with these systems, your staff will have to enter data manually, which wastes time and leads to mistakes. Imagine trying to give customers points or rewards without the system automatically tracking their orders - it quickly becomes confusing for both your team and your guests.

Data integration is the technical term for connecting your loyalty program to your existing software so that everything talks to each other automatically. Good integration means points are added immediately after a purchase, rewards can be redeemed right at checkout, and your customers don't have to wait or jump through hoops. It also means your reports and customer data stay up-to-date without extra work.

Without integration, you risk frustrated customers who can't easily earn or redeem rewards. You also risk staff mistakes that slow down service or lead to disputes. Worse yet, a clunky experience may cause customers to give up on the program entirely.

When evaluating loyalty platforms, check if they support your POS and ordering systems. Ask if the integration happens in real time, or if you'll need to manually sync data later. Some platforms offer built-in integrations with popular POS systems, while others might require additional fees or technical help.

Remember, the goal is to make the rewards program effortless for everyone. If your staff spends less time managing the program, they can focus more on delivering great service. If your customers find it easy to earn and use rewards, they'll keep coming back.

Before launching your dining rewards program, it's important to create rewards that encourage customers to visit more often and spend more. If your rewards don't motivate the right actions, the program won't work as well as you hope.

Keep Rewards Simple and Clear
Customers should understand how to earn and redeem rewards easily. Complex point systems or requiring too many points for a reward can frustrate guests. For example, a buy 10 meals, get 1 free offer is straightforward and easy to remember. Alternatively, offering points for every dollar spent and allowing customers to redeem them for discounts or free items also works well.

Offer Real Value, Without Hurting Profits
Rewards need to feel valuable to customers, or they won't bother earning them. But you also need to balance this with your costs. Calculate how much each reward will cost you and ensure it doesn't eat into your profits too much. For example, a free appetizer might only cost you a few dollars but feels like a meaningful reward to customers.

Use Tiers to Keep Customers Engaged
Adding levels or tiers to your rewards program keeps customers motivated over time. For example, offer a small reward after five visits and a bigger one after 15 visits. This gives customers a goal to work towards and keeps them coming back regularly.

Include Time-Limited Bonuses
Special promotions like double points this weekend or free dessert on your birthday can encourage customers to visit more often, especially during slower times. These limited-time offers create urgency and excitement around your rewards program.

By designing your rewards with these points in mind, you'll build a program that's simple, valuable, and encourages customers to keep coming back. This is the key to turning first-time diners into loyal regulars.

Even the best dining rewards program will struggle if your team doesn't fully support it. Your staff - especially the people working the front of house - are the face of your restaurant and the ones who will explain the program to customers, answer questions, and encourage sign-ups. If they don't understand how the program works or don't believe in its value, your customers won't either.

Why Staff Buy-In Matters
Your team's attitude toward the rewards program affects how customers feel about it. If servers seem unsure or don't mention the program, customers may never hear about it or won't know how to use it. On the other hand, when staff members are confident and enthusiastic, customers feel more comfortable signing up and using the rewards. This can increase enrollment and participation rates, making the program more successful.

Simple and Clear Training
Keep training straightforward and focused. Explain the goals of the program, how customers earn and redeem rewards, and what your staff's role is in promoting it. Use easy-to-follow guides or cheat sheets they can refer to during shifts. This helps reduce confusion and builds confidence.

Role-Playing and Practice
Consider running quick role-playing exercises during staff meetings. Practicing common questions or situations - like explaining how to sign up or handling a confused customer - helps your team feel ready. The more comfortable they are, the more natural it will feel when they're talking with guests.

Ongoing Support and Feedback
Training doesn't stop after the first day. Check in regularly with your team to see how things are going. Encourage them to share feedback or challenges they face with the program. This helps you spot issues early and make adjustments before they become bigger problems.

Incentivize Your Team
To motivate your staff, consider offering small rewards or bonuses for those who sign up the most customers or who handle redemptions smoothly. This creates a positive feedback loop where your team feels rewarded for supporting the program.

By preparing your team well and getting their buy-in, you make it easier for customers to understand and use your dining rewards program. When staff and guests are on the same page, your program has a much better chance of boosting repeat visits and building loyalty.

Launching a dining rewards program is just the beginning. To know if it's actually helping your restaurant, you need to track the right numbers - your key performance indicators (KPIs) - from the very start. Without this data, you're flying blind and won't know if the program is working or needs adjustments.

Important KPIs to Focus On
Here are the most important KPIs to measure for your dining rewards program -

1. Enrollment Rate - How many of your customers are signing up for the rewards program? A low enrollment rate could mean customers don't understand the program or aren't interested.
2. Redemption Rate - How often are customers using their rewards? If this number is low, it might mean rewards aren't appealing or it's too hard to redeem them.
3. Repeat Visit Frequency - Are customers coming back more often after joining the program? This is one of the strongest indicators that your program is driving loyalty.
4. Average Ticket Size - Are rewards members spending more per visit than non-members? Increased spending helps justify the cost of your rewards.
5. Customer Retention Rate - What percentage of customers keep returning over time? This metric helps show if the program is building long-term loyalty.

To accurately measure success, you need to know where you started. Track these KPIs for a few weeks or months before launching your program so you have baseline data to compare against. This will help you see real improvements rather than just guessing.

Many loyalty programs come with built-in dashboards showing these KPIs. If not, work with your POS or data provider to get reports. Even a simple spreadsheet can help you keep an eye on progress as long as it's updated regularly.

Avoid Vanity Metrics
It's easy to get distracted by numbers like total sign-ups or social media likes. While they might feel good, they don't tell you if your program is actually bringing more repeat business or higher sales. Focus on metrics that impact your bottom line.

Review and Adjust Regularly
Set a schedule to review these KPIs - weekly or monthly. If certain numbers aren't improving, use that information to make changes. Maybe you need better staff training, clearer rewards, or more promotion.

Measuring the right KPIs from day one lets you see what's working and what's not, so your dining rewards program grows stronger over time.

Launching a dining rewards program is only the first step - getting your customers to actually join and use it is just as important. If customers don't know about your program or don't see the value, it won't make a difference. Promotion is key to driving participation.

Use In-House Signage and Materials
Place signs where customers can easily see them - at the entrance, on tables, and at the checkout counter. Table tents, posters, and flyers can explain the rewards program clearly and highlight key benefits. Keep the message simple - tell customers how to sign up, what rewards they can earn, and why it's worth their time.

Train Your Staff to Mention It
Your servers and cashiers should mention the program to every guest when appropriate. A friendly reminder like, Have you signed up for our rewards program? You can earn free meals and discounts, can make a big difference. Staff enthusiasm helps build trust and encourages sign-ups.

Leverage Digital Channels
Use your website, email newsletters, and social media to spread the word. Share easy steps to join the program, announce special rewards or promotions, and remind customers to use their points. If you have an app or online ordering system, include prompts there as well.

Offer a Sign-Up Incentive
To jump-start enrollment, consider giving customers a small reward just for signing up - like a free drink or dessert on their next visit. This immediate value helps overcome hesitation and encourages more people to join.

Keep Reminding Customers
Don't just promote the program once and forget it. Regular reminders through your marketing channels and in-person at your restaurant keep the program top of mind and encourage ongoing participation.

Strong promotion makes your dining rewards program visible and appealing. The more customers who join and use it, the better the results for your restaurant.