Restaurant loyalty programs are under more pressure than ever to deliver. This means restaurants must focus on smarter ways to keep guests coming back—and spending more when they do.
The good news? Loyalty programs work. In fact, according to Nation’s Restaurant News (NRN), 60% of operators say that loyalty programs encourage members to return more often, while 37% say they encourage members to spend more. The challenge is building a program that actually delivers value. For many operators, budget (26%) and lack of staff expertise (23%) are the biggest roadblocks.
Though most of the leading restaurant brands have adopted a loyalty program, one thing in particular irks far too many customers: some programs simply aren't good. Frustrations like confusing redemption rules, clunky apps, or low-value rewards leave customers disengaged. When these barriers stack up, adoption and engagement suffer.
To better understand how restaurants can overcome these challenges, SMG sponsored an NRN survey of restaurant operators about their loyalty programs and paired the results with SMG consumer insights on membership usage and retention. Together, the findings reveal what customers value most—and how restaurants can design smarter programs that build lasting loyalty.
Note: For this study, we looked only at limited service restaurants—quick service (fast food) and fast casual.
Loyalty is common. Value is what sets programs apart.
Loyalty programs are everywhere, and most consumers already belong to more than one. In fact, 64% of respondents say they belong to three or more, while only 9% aren’t enrolled in any. That means your customers are likely already signed up for multiple programs. The challenge isn’t getting them to join something new—it’s convincing them yours is worth it.
For many consumers, the hesitation comes down to interest and value. If the program doesn’t feel exciting or rewarding, they’re unlikely to sign up. When asked why they don’t sign up for loyalty programs, consumers cited reasons ranging from lack of awareness to preferring home cooking or questioning the value. Others said they just don’t visit fast food restaurants often enough to make it worthwhile.
But for those who do sign up, the real differentiator is clear: the rewards. Points, free items with purchase, and coupons remain the top perks because they’re simple, tangible, and easy for members to understand and use. When brands spread the word effectively, awareness rises and rewards feel more accessible.
Loyalty programs fuel more frequent visits
Strong loyalty programs drive customers to visit more frequently. For many customers, membership doesn’t just add value—it changes their habits. In fact, 84% of consumers say loyalty programs encourage them to visit more often, and a third report stopping by at least two extra times a month because of their membership.
McDonald’s continues to stand out as a preferred program, thanks to its user-friendly app, easy-to-earn points, and valuable rewards. By keeping the system simple and the benefits clear, they’ve made it easy for members to see the value in coming back again and again.
This trend is especially strong among Gen Z and millennial consumers, who are more likely than older generations to let loyalty memberships guide their choices on where and how often they eat out. And operators agree—NRN data shows many believe well-designed loyalty programs drive more visits and boost spend per visit, making them a powerful driver of growth.
Ongoing rewards keep members engaged
A flashy sign-up bonus can grab attention, but it’s the ongoing rewards that keep members loyal. While 66% of consumers say a bonus motivates them to join, the benefits that last—like earning points (81%) and getting discounts (77%)—are what truly drive engagement. These perks are consistent, easy to understand, and deliver value every time.
Consumers are clear about which rewards matter most, and the winning formula is simple. Points redeemable for menu items top the list, with 86% preferring this type of perk, while 75% enjoy the bonus of a free item with purchase.
Also, 81% percent say earning points for every dollar spent is the most appealing benefit, while 77% are motivated by straightforward discounts on menu items. Birthday rewards add a personal touch, resonating with 69% of respondents. Together, these three benefits resonate with 96% of respondents.
It doesn’t have to be complicated—points, discounts, and little personal touches go a long way in keeping members engaged and loyal.
Turn insight into action
When it comes to loyalty programs, consumers want two things above all else: value and convenience. One NRN study found that 60% of customers say discounts, special deals, and other offers are what resonate most, while 38% point to convenience—things like seamless apps, easy digital ordering, and quick payment.
That means the best loyalty programs strike a balance between being rewarding and being effortless. If earning and redeeming points feels clunky, even the best discounts won’t drive long-term engagement.
So how can restaurants deliver both?
Make apps seamless and rewarding
A loyalty program lives or dies by its user-friendliness. Consumers expect to earn and redeem rewards without friction. When rewards are simple to track and easy to redeem, members are more likely to engage regularly and see value in the program.
Use time-bound offers to drive urgency
Limited-time perks, like double-point days, give customers an extra reason to visit without overcomplicating the program. These offers create excitement, spark urgency, and help increase traffic in the short term—while still keeping the structure of the program simple and easy to manage.
Leverage easy wins to boost sign-ups
Discounts and points-based rewards remain the most effective drivers of engagement, with 30% of operators pointing to discounts and 34% to points as the features that lead to more redemptions, repeat visits, and revenue. To get more people enrolled, operators are leaning on easy wins like QR codes, one-time bonuses, and instant rewards. These quick hits not only encourage sign-ups but also highlight the core benefits that keep members coming back.
Creating loyalty programs that deliver real value
Restaurant loyalty programs can’t just be flashy. They have to deliver ongoing value that makes every visit feel worthwhile.
That’s where SMG helps. By pairing consumer feedback with operator insights, we make it easier to see what’s working, uncover where members are disengaging, and focus on the strategies that drive repeat visits, higher spend, and stronger loyalty.
Ready to turn loyalty into growth? Let us help you build a program that delivers value members can’t ignore.
