How to Whip Up a Winning Loyalty Program for Your Local Restaurant

If you’re the owner of a small local restaurant, you already know just how much every repeat customer matters and how important a great loyalty program is in bringing those customers back. However, you might think that you don’t have the time or budget to run a loyalty program right now, but we’re here to tell you that you can!

It is possible to build an engaging loyalty program on a small business budget. In fact, you have the power to make your customer rewards way more personal than the big players like Panera or Chipotle. All it takes is a little creativity and heart, which small business owners like you have in abundance.

Here are 8 loyalty program ideas that you can use to inspire your restaurant’s loyalty program and keep your customers rushing back for seconds (and thirds, and fourths…).

1. VIP Rewards Program

Creating a VIP rewards program can give your most loyal customers a sense of exclusivity. Offer special perks like a free dessert on their birthday, early access to new menu items, or a reserved table on a busy night.

This type of incentive makes your customers feel special and appreciated, creating meaningful moments each time they visit your business. And the more meaningful interactions they have, the more likely they’ll be to think of your restaurant when they want to have a nice meal.

2. Referral Program

Referral programs are a fantastic way to bring in new customers while rewarding your current ones. But why not add a little twist? Instead of just offering a discount in exchange for a successful referral, consider giving both the referrer and the new customer a unique experience like an exclusive cooking class or an invitation to a food tasting. This not only incentivizes the referral, but also deepens both customers’ connections to your business.

3. Tiered Loyalty Program

The Starbucks reward program has seen huge success using a tiered loyalty system. Basically, the more a customer spends, the higher they climb on the loyalty ladder, unlocking better and better rewards at each level. For example, at level one, they might earn a free drink after five visits, while at level three, they could enjoy 10% off their bill when they dine in.

This kind of program encourages repeat visits and even increases customer lifetime value by incentivizing higher spending at different levels. It also gives you a chance to personalize your offers for your most loyal customers so they never get bored of earning the same old rewards over and over.

4. Seasonal Promotions

Time to mix things up with some seasonal flair! Cook up some limited-time rewards that will only be available during holidays, special events, or the change of seasons. This keeps your loyalty program fresh and exciting and aligns with the basic principles of customer lifestyle marketing. Think of it as a way to re-engage customers who might not have visited in a while and to keep things lively for your regulars.

Many customers can’t resist a limited-time reward either, so consider using in-season ingredients to offer a seasonal dish or drink and allow customers who order your seasonal items to earn extra rewards during that time period.

5. Point-Based System

Point-based systems are a staple in loyalty marketing, but you can make yours stand out by adding some fun surprises. For example, offer double points on slower days to encourage visits when you need the business most or introduce surprise “double point hours” to draw in customers who might be on the fence about where to stop for a bite.

It’s also important to let customers earn points through actions other than just spending, like leaving a review or tagging your restaurant on social media. This keeps your rewards program spicy while also broadcasting how great your food is to the rest of the local community.

6. Birthdays and Anniversary Specials

Nothing says “we appreciate you” quite like a personalized gift on your customer’s special day. Implement a loyalty program that sends out birthday and anniversary discounts or freebies to let customers know you care about them as an individual person, not just another table. This approach helps you build more meaningful customer relationships by creating memorable experiences that actually feel natural and personal.

7. Social Media Rewards

A strong social media presence is now essential for any business, so why not tie your customer rewards program to your social media channels? For instance, try offering rewards for customers who check in at your restaurant, share a photo of their meal, or tag your business. You can even use hashtags to track and reward your most active customers.

8. Budget-Friendly Loyalty Programs

If your budget is tight right now, don’t worry. There are still plenty of ways to create a meaningful loyalty program without breaking the bank. Discount codes and freebies might be too much of a loss at the moment, but consider partnering up with other local businesses to design more creative promotions. For example, you could work with a local theater or bowling alley to cook up a date night special that brings in more couples to both businesses.

Don’t be afraid to let your creativity shine with your customer rewards! Lean into the quirky aspects of your business to charm customers and show how much fun it can be to eat at a local restaurant instead of ordering from a big chain again.

Ostana: Your Recipe for Success

Creating a restaurant loyalty program doesn’t have to be complicated or expensive. By focusing on what matters most to your business and demonstrating your unique personality to customers, you can build a program that will help you create deeper connections. The goal is to design something that resonates with your customers and keeps them coming back for more.

That’s where Ostana comes in. Our loyalty & engagement software gives you the power to easily implement all your greatest loyalty program ideas with minimal cost and minimal effort. Remember, loyalty isn’t just about points and rewards. It’s about building lasting relationships that turn one-time visitors into lifelong customers.

Drop us a line today to unlock the secret ingredient to a successful loyalty program with Ostana!