The fight for restaurant loyalty has never been tougher. With budgets stretched and expectations rising, diners are scrutinizing every point, perk, and promise.
Rising prices are also top of mind, and unpredictable increases only add to the pressure. For restaurants, the challenge isn’t just getting guests through the door. It’s about getting customers to come back sooner and more often.
The encouraging news? Loyalty problems have proven successful for restaurant brands across the world... as long as they deliver consistent, meaningful value.
Too often, frustration comes not from the lack of a program, but from how it’s executed. Clunky apps, rewards that feel too small or hard to earn, limited offers, and poor communication can quickly turn customers away. When those barriers stack up, adoption slows and engagement drops.
To dig into how restaurants can overcome these hurdles, SMG surveyed 947 consumers in the UK about loyalty program usage and retention. The results highlight what customers value most and offer a roadmap for building programs that earn lasting loyalty.
Note: For this study, we focused on limited service restaurants in the UK—quick service (fast food) and fast casual.
Loyalty overload: Standing out in a crowded field
Ironically, for something named after loyalty, most diners aren’t sticking to just one program—they’re juggling several. In fact, two-thirds of respondents say they’re members of at least two programs, while only 14% say they’re not enrolled in any at all.
So, what keeps people coming back? Simple, tangible rewards. Points they can redeem for menu items, free items with purchase, and straightforward coupons continue to be the top picks. These perks are easy to understand and immediately feel valuable, which is why they consistently rise to the top across consumer segments.
But there’s another side to the story: barriers. For many, the hesitation comes down to lack of interest, not seeing the value, or feeling like the program is too complicated. These pain points are especially common among baby boomers and Gen X, who are less likely to be enrolled in more than two programs.
The takeaway? To win new members, restaurants need to double down on awareness and keep the focus on clear, meaningful value. When a program is easy to join, easy to use, and clearly rewarding, it’s much more likely to stand out in a crowded loyalty landscape.
Loyalty programs drive more visits
It’s no surprise that the right loyalty program can change customer habits. In fact, 82% of consumers say these programs encourage them to visit more often—34% say they visit two additional times, but 60% say it encourages them to visit two or more times. For younger diners, the pull is even stronger. Gen Z and millennials are the most likely to let loyalty memberships shape where and how often they eat out.
One brand that consistently rises to the top? McDonald’s. Its program stands out thanks to easy-to-earn points, a straightforward app, and generous offers. By keeping it simple—quick to earn, easy to redeem, and consistently rewarding—McDonald’s has a model that makes members want to return again and again.
But success isn’t just about the size of the rewards pool. Research shows 4 in 5 consumers prefer brands that give them more control over how they earn and use their rewards, and 93% say they’ve used or would use features that let them customize rewards. The takeaway: personalization matters.
More often than not, it’s not about piling on perks but making them relevant. A program that offers flexible, personalized rewards will always feel more valuable—and will be more likely to keep customers coming back.
Keeping members hooked with lasting value
While 57% of consumers say a sign-up bonus motivates them to join, the real appeal lies in the benefits they can count on every time they visit. Points, discounts, and birthday perks top the list of what makes programs feel valuable.
Nearly 8 in 10 consumers (79%) prefer points they can redeem for menu items, while 64% love getting a free item with purchase, and 61% want discount coupons. Non-food merchandise rewards? That trails far behind at just 28%.
When it comes to sign-up drivers, the picture is clear: 74% say earning points for every pound spent is the most attractive benefit, 70% want discounts on menu items, and 63% enjoy birthday rewards. Put all three together and you’ve got a winning combo; these three benefits resonate with 82% of respondents.
Loyalty programs don’t need to reinvent the wheel. The key is keeping rewards simple, consistent, and easy to use. When members see ongoing value through points, discounts, and small personal touches, they’re far more likely to stay engaged.
Turning loyalty insights into action
Make the app seamless
If earning and redeeming rewards feels complicated, members won’t stay engaged. Customers expect to track points, redeem offers, and browse rewards without hassle. Too often, glitches, confusing layouts, or poorly designed features make the process frustrating and discourage repeat use.
A smooth, intuitive experience goes a long way in keeping people active and invested in your program.
Pro tip: Incorporate experience design to create loyalty programs with the customer in mind.
Use time-bound offers
A steady stream of rewards matters, but limited-time perks—like double-point days—can add excitement and give customers a reason to come back sooner. These promotions are simple to run and highly effective at creating urgency.
The key is balance: keep the program easy to manage while offering enough variety and relevance to keep members engaged. Test different promotions, listen to customer feedback, and refine offers so they feel fresh, valuable, and aligned with what your audience actually wants.
Pro tip: Using Bulbshare from SMG is a great way to connect to your community and get the insights you need, fast.
Leverage easy wins
The first step is getting people in the door. Easy tactics like QR codes, instant rewards, and one-time bonuses make it simple for customers to join and see immediate value. Highlighting core benefits early and making them easy to claim helps remove those barriers and builds momentum for long-term engagement.
Pro tip: Use quick surveys or insight communities to test your messaging early. You’ll see what resonates, fix what doesn’t, and boost sign-ups from day one.
Build loyalty that lasts
Restaurant loyalty programs need more than flashy sign-up perks. They also should deliver consistent, meaningful value that makes every visit feel rewarding.
At SMG, we bring together real consumer feedback to help brands design programs that truly resonate. By understanding what keeps members engaged—and where drop-offs happen—we give you the tools to boost repeat visits, increase spend, and strengthen long-term loyalty.
It’s not just about having a program; it’s about building one that members can’t imagine leaving.
Want to turn loyalty into lasting growth? Let’s design a program that delivers value your guests will crave again and again.
Interested in seeing how these results compare in the U.S.? Click here to learn more.
