As the winter months draw near, restaurants across the country are gearing up for the biggest time of year for gift card sales. According to a recent study from Patronix, 45% of all gift cards were purchased during the holiday season, with quick-service restaurants capturing up to 60% of the market. Make sure your restaurant is capitalizing on this opportunity to increase revenue this year with the easy implementation of gift cards.
Starbuck’s gift card program is an excellent example of how to boost card sales with loyalty. During last year’s holiday season, Starbucks projected $3 billion in sales from gift card purchases, with an estimated $164.5 million in “breakage,” meaning funds that have yet to be redeemed. In 2019 alone, “the Starbucks Card account[ed] for a whopping 41.4 percent of their business“.
The method of Starbuck’s success comes from incentivizing return visits through its mobile ordering app and loyalty program. A mobile app enables diners to order, pay, and redeem all in a few simple steps. Like Starbucks, you can send out promotions that give customers double loyalty points, for instance, and provide a gift card redemption option. This way, customers feel more incentivized to spend because they feel like they are getting a good deal.
Higher Check Amount
Gift cards are great for your bottom line since an estimated 59% of consumers who use them as a payment method end up spending beyond the gift card’s value. The other half who do not use the entire card amount on their first visit are sure to return. Gift cards keep diners coming back, giving you an additional opportunity to win them over as loyal customers. With a 5% increase in customer loyalty leading to an average profit increase of 25%-100%, the more chances to gain a loyal customer, the better.
Fast & Secure Payment Method
Unlike paper gift certificates, which can be replicated easily, gift cards are a safe and secure way to increase your profit. With e-gift cards, your customers can quickly order and pay online or through mobile, streamlining the entire process.
Whether you are a one-location restaurant, or a franchise continuing to grow, adding gift cards to your repertoire will increase overall sales and encourage repeat visits from new and returning customers. Check out our link below to learn more about LINGA’s custom gift card options for this holiday season. https://shop.lingaros.com/collections/gift-cards