5 Best Restaurant Loyalty Programs & What Other Restaurants Should Adopt -

In today’s hyper-competitive restaurant landscape, customer loyalty isn’t just a nice-to-have—it’s essential for driving repeat business and boosting revenue. The most successful brands know this and have crafted loyalty programs that not only reward frequent diners but also significantly impact their bottom line.

From Yogurtland’s point-based system that has driven an 18.4% increase in membership, to Starbucks’ Rewards program that keeps customers coming back daily, these initiatives are more than just perks – they’re strategic tools for growth. In this article, we’ll dive into the five best restaurant loyalty programs, explore what makes them so effective, and highlight key takeaways other restaurants can adopt to keep their guests engaged and coming back for more.

Yogurtland

Yogurtland’s Real Rewards program offers a simple yet effective structure that keeps customers coming back for more. Members earn 2 points for every dollar spent, with a $5 reward for every 100 points accumulated. The program includes three reward tiers, a 50-point bonus just for signing up, and special birthday treats, making it easy for customers to feel valued and engaged. This tiered approach not only incentivizes repeat visits but also encourages customers to spend more to unlock higher rewards.

The impact of this program has been significant. From October 2023 to October 2024, Yogurtland saw an 18.4% growth in loyalty membership. Loyalty members spent $5.6 million more than non-members, and overall loyalty spending jumped nearly 30%, from $19.1 million to $24.7 million. Additionally, loyalty member traffic grew by 23%, proving that a well-designed rewards program doesn’t just retain customers – it drives revenue and foot traffic.

Starbucks

Starbucks Rewards is one of the most recognized loyalty programs in the world, offering customers a flexible way to earn and redeem points – called Stars. Members earn 1 star per dollar spent through scans or linked payments, and up to 2 stars per dollar when using a preloaded card. With five reward tiers ranging from 25 to 400 stars, customers can redeem rewards for anything from a simple drink customization to a full meal. Perks like birthday treats, free refills on tea and coffee, order-ahead options, and exclusive offers keep members engaged, while limited-time promotions like Double Star Days encourage frequent visits.

The results speak for themselves: Starbucks Rewards members are 5.6 times more likely to visit a Starbucks every day compared to non-members. Additionally, 71% of Starbucks app users – who are typically enrolled in the program – visit a store at least once a week. This loyalty program not only boosts daily traffic but also strengthens customer relationships, making it a prime example of how to turn casual customers into dedicated regulars.

Panera

Panera’s MyPanera loyalty program is designed to reward customers with simple, consistent perks that keep them coming back. Signing up is free, and new members are welcomed with a complimentary pastry. Members earn a free item for every six transactions, along with special birthday treats, and have up to 60 days to redeem their rewards. For frequent beverage lovers, the Panera Unlimited Sip Club offers unlimited refills on coffee, teas, sodas, and Charged Lemonades for $10.99 per month, making it an attractive option for regular visitors who love their daily drinks.

The impact of these programs has been impressive. During the first half of 2022, over half of all Panera transactions were made by rewards members, highlighting the program’s strong influence on customer behavior. Even more striking, MyPanera guests spend four times more than non-members, proving that consistent, meaningful rewards can significantly boost customer spending and loyalty.

Domino's

Domino’s Rewards program is a straightforward, no-frills system that keeps customers engaged with easy-to-earn points and exclusive deals. Members earn 10 points on every order of $5 or more, with rewards tiers set at 20, 40, and 60 points, allowing customers to quickly accumulate and redeem their points for free menu items. The simplicity of the program, combined with frequent promotions and exclusive offers, makes it easy for both new and returning customers to participate without feeling overwhelmed.

This approach has paid off significantly for Domino’s. In the second quarter of 2023, same-store sales saw a 7.9% increase for carryout customers and a 2.7% bump for delivery orders. By the fourth quarter, the company’s revenue had grown by $10.7 million, reaching $1.4 billion. These numbers highlight how an accessible, user-friendly loyalty program can drive both in-store and delivery growth, boosting overall revenue while keeping customers satisfied.

Red Robin

Red Robin’s Royalty loyalty program offers a simple yet effective way to keep guests engaged and spending more. Members earn one point for every dollar spent, and once they hit 100 points, they receive a $10 reward that can be used for either dine-in or online orders. With a 90-day redemption window, the program encourages timely repeat visits without overwhelming customers with short expiration periods. This balance of flexibility and value makes it easy for guests to see the benefits of membership right away.

The results of this program have been impressive. Loyalty guest checks are, on average, $4.40 higher than those of non-members, showing that rewards incentivize higher spending. Additionally, the average time between a customer’s first and second visit has been reduced from 51 days to just 39 days, while the number of members making two or more transactions has increased by 12%. These outcomes demonstrate how a straightforward rewards system can effectively boost both frequency and spending.

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Key Takeaways For Restaurants

Make It Easy to Earn and Redeem Rewards
Programs like Yogurtland Real Rewards and Domino’s Rewards succeed by offering simple, straightforward ways to accumulate points and redeem them for valuable rewards. Customers appreciate low barriers to entry and clear benefits.
Offer Tiered Incentives to Encourage Spending
Starbucks’ five-tier system and Yogurtland’s multi-tier rewards structure show that offering escalating benefits motivates customers to spend more to reach higher levels. This keeps engagement high and incentivizes larger or more frequent purchases.
Incorporate Subscription Models for Consistent Revenue
Panera’s Unlimited Sip Club demonstrates how subscription-based loyalty programs can drive consistent, recurring revenue while enhancing customer loyalty. Offering unlimited access to popular items for a flat monthly fee encourages frequent visits.
Provide Exclusive Perks to Make Members Feel Special
Starbucks and Red Robin reward members with birthday treats, exclusive offers, and special promotions like Double Star Days. These perks create a sense of exclusivity and appreciation that deepens the customer’s connection to the brand.
Use Data to Drive Repeat Visits and Higher Spending
Programs like Red Robin Royalty have shown that loyalty members not only spend more per visit but also return more frequently. By tracking spending patterns, restaurants can tailor offers to encourage repeat business and larger check sizes.
Ensure Flexibility in Rewards Redemption
Offering flexible redemption options, like Red Robin’s ability to use rewards for dine-in or online orders, makes the program more attractive. Flexibility allows customers to use rewards in a way that best fits their dining habits.
Create Urgency with Expiration Dates
Setting a reasonable expiration date for rewards, like Panera’s 60-day window or Starbucks’ six-month star expiration, encourages customers to return sooner rather than later to redeem their benefits, driving more frequent visits.
Leverage Technology for Seamless Participation
Starbucks’ app-based system makes earning and redeeming rewards effortless, while also offering convenient features like mobile ordering. Investing in technology simplifies the process for customers and enhances the overall experience.
Reward Both Small and Large Purchases
By offering points for every dollar spent, regardless of the order size, programs like Red Robin and Domino’s ensure that all customers feel valued, whether they’re making small or large purchases.
Track and Measure Program Impact
The success metrics from these programs – like Yogurtland’s 18.4% membership growth and Domino’s revenue increase – highlight the importance of tracking performance. Regularly analyzing loyalty program data helps refine strategies and maximize ROI.

Conclusion

Loyalty programs are more than just a way to reward repeat customers – they’re powerful tools for driving revenue, increasing customer engagement, and fostering long-term relationships. By studying successful programs from brands like Yogurtland, Starbucks, Panera, Domino’s, and Red Robin, restaurant owners can identify key strategies to implement in their own businesses. Whether it’s simplifying the rewards structure, offering exclusive perks, or leveraging technology for a seamless experience, the right loyalty program can turn occasional diners into loyal regulars and significantly boost your bottom line.

5 Best Restaurant Loyalty Programs & What Other Restaurants Should Adopt

Yogurtland

Starbucks

Panera

Domino's

Red Robin

Key Takeaways For Restaurants

Conclusion

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