Loyalty Programs That Actually Work (and Why Most Don’t)

Marketing

Loyalty programs are everywhere, but very few actually move the needle. In this post, we dive into why most restaurant loyalty efforts fail—and how you can build one that keeps guests coming back, spending more, and turning into long-term advocates for your brand.

Jack Hendrix

CEO, OpenTab

May 4, 2025

6 min read

Why Most Loyalty Programs Don’t Deliver

Guests don’t join loyalty programs just for the points—they join for a sense of recognition, reward, and relationship. Unfortunately, many programs are too generic, too complicated, or too disconnected from the guest experience. A punch card isn’t loyalty. Neither is an email blast with no personalization. To drive repeat visits, your program needs to feel seamless, easy, and valuable from day one.

1. Make Enrollment Frictionless

If it takes more than 30 seconds to join, you’re losing people. Use QR codes at tables, mobile prompts, or POS-integrated solutions to enroll guests instantly. OpenTab, for instance, gives users a branded mobile experience that makes loyalty feel like a natural part of the payment flow—not a separate app to download or card to carry.

“Loyalty isn’t about transactions—it’s about relationships. The best programs reward frequency, not just spend.”

2. Offer Meaningful Rewards (Not Just Discounts)

While 10% off is nice, guests want rewards that actually excite them. Think VIP-only items, birthday surprises, early access to events, or even the ability to skip the line. The best loyalty programs feel exclusive—not just promotional.

3. Personalize the Experience

The more your program can remember and respond to guest behavior, the more effective it becomes. Use ordering data, visit history, and preferences to tailor offers. A well-timed drink comp or “we miss you” message can be more powerful than a generic coupon blast.

4. Integrate with the Rest of Your Guest Experience

Your loyalty program should be baked into every part of the guest journey—from the moment they open a check to the moment they leave a review. If you’re using tools like OpenTab, loyalty becomes part of the tab management experience, not a separate system your staff has to remember.

5. Keep It Simple and Trackable

If your team can’t explain how your loyalty program works in one sentence, it’s too complex. Simple rules + clear rewards = better adoption. And make sure you’re tracking results. Use metrics like repeat visit rate, average spend per visit, and redemption rate to measure ROI and optimize over time.