Using Multi-Restaurant Gift Cards to Grow Your Business

TL;DR: Multi-restaurant gift cards allow guests to choose between several dining brands. These gift cards deliver value to restaurants because 74% of customers prefer buying multi-brand options, which means restaurant operators may be able to sell more cards.

• Why it matters: As acquisition costs and third-party delivery fees rise, restaurants can ensure profitability by owning more of the guest relationship.
• Who this is for: Multi-unit restaurant operators and marketing leads who want to increase the value of their gift card programs and connect with more customers.
• Who can skip this: Single-location operators who are getting started, as well as established operators who don't want to partner with other restaurants.
• What you'll walk away with: A clear framework for choosing restaurant partners, tips to sell more gift cards, and platforms to help facilitate the process.
• Best next step to take: Audit your current gift card strategy to see whether multi-restaurant gift cards are a viable option for your establishment.

Multi-restaurant gift cards are a powerful tool you can use to attract customers who want both variety and flexibility when it comes to buying a gift. Instead of purchasing a gift card that’s valid for a single restaurant, customers can buy a multi-restaurant gift card that recipients can use at their choice of several restaurants.  

Recent market trends show that there’s an increased consumer interest in gift cards that offer broader options. 74% of customers prefer to buy a multi-brand gift card. Participating in a multi-restaurant gift card program helps set your restaurant apart in an ever-more-crowded marketplace.  

Benefits of Multi-Restaurant Gift Cards 

There are many benefits of offering multi-restaurant gift cards in a competitive market. Multi-restaurant gift cards attract a wider customer base, as customers are more likely to buy gift cards that recipients can use at a variety of locations. Gift givers do not need to know the exact preferences of the recipient since they use them at several different places. This makes them ideal for gifts, program rewards, and personal use. 

Many of these customers may never have even heard of or visited your restaurant. This is an effortless way to introduce patrons to new dining experiences they may not have considered otherwise. Such multi-restaurant gift cards expand the buyer base and increase the likelihood of customer retention for all participating restaurants. 

Strategies for Partnering with Other Restaurants 

Starting a multi-restaurant gift card program requires partnering with other restaurants that are willing to participate. Instead of reaching out to competitors, choose multiple restaurants that complement yours in cuisine, price point, and/or dining style.  

For example, a farm-to-table restaurant that emphasizes fresh, local ingredients could partner with a local craft brewery. There’s no real competition there, as customers look for different menu items and experiences when visiting either of these businesses. In addition, and perhaps more importantly, customers who like one likely enjoy the other. 

Be upfront and clear with the logistical aspects of the proposed partnership. Detail how you plan to share revenue and brand the multi-restaurant gift card. Provide information on how you propose to promote it, but always be open-minded. Your partners may bring some great ideas on other promotional efforts. 

Selling Multi-Restaurant EGift Cards 

In addition to physical gift cards, it’s also possible to sell multi-restaurant eGift cards digitally. It’s an easy way for customers to purchase last-minute gifts. With instant delivery, it’s possible to remotely send a gift anywhere at any time. Many tech-savvy consumers prefer digital gift cards over physical ones. 

From a business standpoint, there are many advantages for restaurants that decide to offer digital gift cards. You’ll benefit from improved tracking and analytics across multiple venues, which provides valuable insights into customer preferences and spending habits, especially as far as consumer inflation affects them.

Technology Platforms to Facilitate eGift Card Management 

There are several platforms that equip you to manage electronic or automated gift cards, from issuing to redeeming eGift cards across multiple restaurants. Prioritize a platform that’s easy to integrate with your existing POS system, as you don’t want to select one that isn’t compatible.  

Aim for a solution that’s user-friendly for both employees and customers. You want to make the process of buying a gift card as easy and straightforward as possible. The wrong kind of friction in the checkout process could hurt sales.  

It’s also a good idea to ensure that any technology you introduce into your business has robust security measures. It must protect against fraud and unauthorized access. Otherwise, your entire multi-restaurant gift card program could be in jeopardy.  

Two popular platforms to consider include: 

• Paytronix offers efficient gift card and comp card creation and management for fast food, quick-service, and full-service restaurants. We also offer industry-leading AI, marketing automation, and strategy and analytics services to maximize your available data and drive more top-line and bottom-line growth. 
• Square is a restaurant POS and hardware solutions provider that simplifies your gift card sales process in your brand's physical locations.

Frequently Asked Questions About Multi-Restaurant Gift Cards

To develop an effective gift card strategy for your restaurant, you need answers to important questions. Here are the most common queries we see.

What is a multi-restaurant gift card, and how does it work across locations?

A multi-restaurant gift card is a single payment method that recipients redeem at any participating brand. Guests purchase the card from one establishment, and the unified gift card processor tracks the balance as they use it across locations and concepts.

How do multilocation restaurant groups manage gift card redemption and fund reconciliation?

Multilocation restaurant groups use centralized gift card processors to track redemptions and settle funds between different business entities. When a guest purchases a gift card at one location, but spends the funds at another, the system flags the transaction for intercompany settlement. Platforms like Paytronix support this process via efficient gift card management that streamlines accounting.

What is the difference between a restaurant-specific gift card and a multi-restaurant gift card?

Restaurant-specific gift cards restrict spending to a single brand. Multi-restaurant gift cards allow recipients to spend their balance across multiple brands. Single-brand cards work well for established fan bases, but multi-brand cards reduce the gift-giving risk for the purchaser by providing more options. This variety makes them ideal for corporate rewards and personal gifts where the recipient’s exact preferences are unknown.

How do digital and e-gift card programs compare to physical gift cards for restaurant operators?

Digital cards eliminate the logistics of physical card production and provide instant delivery. Operators also gain access to analytics, which allows them to see how guests interact with their brand across multiple venues. Many tech-savvy consumers prefer digital options too as they offer the convenience of mobile storage.

How can a restaurant gift card program drive new customer acquisition and increase average check size?

Multi-restaurant gift cards expose your brand to new customers. A potential guest might purchase one with the intent of spending it at a partner location but spend it at your location instead. As such, multi-restaurant gift cards are often a low-cost acquisition channel. Just as importantly, gift cards, whether multi- restaurant or single-restaurant cards, encourage spending. 61% of diners spend more than the original value of their cards. This behavior directly boosts average check size and creates upfront cash flow for your business.

The Bottom Line 

Multi-restaurant gift cards have tremendous potential for helping your restaurant grow by reaching new diners who may not have otherwise visited. Customers who regularly frequent the other restaurants participating in your multi-restaurant gift card may decide to try out your restaurant because of this increased visibility and brand exposure.  

An estimated 21% of gift cards purchased are redeemable at multiple businesses. If your restaurant doesn’t participate in a multi-restaurant gift card, you could miss out on these sales. 

These gift card software programs tend to encourage repeat business. Customers may grab something to eat when they come in to purchase a physical gift card. When gift card recipients have a great time at your restaurant, they are more likely to return to eat and to let other people know about their positive experiences.  

All gift card programs help to generate upfront profit, as the gift giver pays the total value of the gift when they buy it. This upfront cash value occurs despite the fact gift card revenue is considered deferred revenue once the card is redeemed. This is an important detail to know when doing gift card accounting and gift card taxes.

Regardless of whether the recipient ever redeems the gift card, the purchase will immediately help with your restaurant’s cash flow. According to Capital One, 61% of gift card recipients spend more than the gift card value when they redeem it.

Launch Your First or Next Gift Card Program

To launch a multi-gift card program, you first need to find other restaurant partners willing to participate. Once you find the right partners, ensure that all partners are aligned with the program’s goals and agree on the terms and conditions associated with the gift card. Make sure that all terms and conditions are clearly outlined for customers, too.  

Utilize targeted gift card marketing strategies to reach potential buyers. You can use limited time offers or bonus card promotions as part of your marketing strategy. Selling multi-restaurant gift cards at local events and festivals can boost visibility for all restaurants that participate.  

If you don’t know where to start with your restaurant’s gift card strategy, check out Paytronix’s Marketer’s Guide to Gift Card Strategy. It’s one of the many resources that we have available online to help restaurant owners and marketing managers learn how to use technology to grow their businesses.