Loyalty in restaurants: how to stop giving discounts and start making money

Loyalty programs for restaurants can increase profits by up to 40% if built on the right principles – we explain how to create a system that generates real revenue instead of just handing out discounts.

Business optimization

“We’re not a charity — why give away food?” — I’ve heard this dozens of times. Usually said by the restaurant owner.

Let’s call him Oleksandr. Like you, he calculates food cost down to the last penny every day, and the idea of “giving something away for free” sounded like shooting himself in the foot. The skepticism is understandable: when you count margin to the penny every day, “giving away” feels like a loss. Until we showed him he was looking at the problem from the wrong angle.

Your most valuable asset is the kitchen, not the dining room

Oleksandr’s main problem was that on a Friday evening his dining room was full. He couldn’t seat any more guests. But his kitchen, according to the chef, could handle an additional third of orders. That “invisible” capacity became our growth point.

The digital loyalty program taps into that invisible capacity. An online guest doesn’t take up a table or need a server. But more importantly: when we sent a push notification at 6 PM on Tuesday with an offer to use accumulated bonuses, the guest placed an order without even opening Google Maps for alternatives. We didn’t “poach” a guest from a competitor — we created a sale where there wouldn’t have been one.

Five rules that turned “losses” into 40% profit growth

We sat down with Oleksandr and designed a simple system that transformed his loyalty program from a cost center into a profit machine.

1. Instead of money — emotions. First, we banned direct discounts and replaced them with points. A dessert costing 15 UAH, received “as a gift,” feels like an 80 UAH value to the customer. Pure psychology.
2. Strategic generosity. We analyzed his sales and chose reward items that guests love but have low food costs: signature lemonades, house desserts, appetizers.
3. The “endowed progress” effect. In the new app, we clearly showed a progress bar toward the reward. When only one order remained to earn a free panna cotta, people felt that “game quest” urge — “gotta finish it.”
4. Reciprocity magic. When a guest claimed a bonus, for example a free coffee, the app immediately suggested a croissant at 25% off. Having received a gift, people are psychologically inclined to “give back.” The average check of such orders rose by 25%.
5. Quiet but constant contact. Once a week the system automatically reminded guests whose bonuses were about to expire. It’s not intrusive advertising but a caring reminder that forms a habit.

Tools that made it possible

Of course, Oleksandr needed the right tools to implement this strategy. He couldn’t do it manually. That’s when the Eatery Club ecosystem came on stage. Our ready website and mobile app already had all this logic built in. The flexible bonus system allowed setup in a few clicks; the points wallet propelled the dishes you want to promote.

Bonus math is flexibly configurable: percentages, “happy hours,” personal offers — everything changes in a few clicks.

The points wallet lets guests save up specifically for the dishes you want to push, and the marketing hub automatically segments audiences and sends relevant offers.

The system integrates with self-service kiosks and POS accounting, so bonuses apply both online and offline.