Loyalty Apps for Restaurants: 18 Insights for More Revenue and Growth

Your customers live on their phones (the average American spends a whopping 4.5 hours on their phone daily). Why not put your restaurant in their hands with a top-tier loyalty app? 

Allowing your customers to make reservations, view menus, order, and pay for meals from the palm of their hands isn’t the future anymore—it's an everyday given. If you aren’t offering this to your own audience, you’re quickly falling behind. 

Not only that, restaurant loyalty apps give you additional benefits like:  

• More spending: Restaurant loyalty apps that gamify the rewards experience often get customers to spend more. This is because spending is based on specific actions to take or challenges to overcome, giving customers emotionally rewarding and memorable ways to unlock rewards. Nation’s Restaurant News reports that when given a gamified rewards option, restaurant customers spend 39% more than non-loyalty members.  
• Easy word-of-mouth marketing and loyalty advertising: Customers who actively use a restaurant’s rewards app are more likely to recommend that restaurant and its loyalty app to their friends and family.  
• Easier customer retention: It’s less costly to retain customers than it is to acquire new ones. A loyalty program and app makes more likely the customers you have will continue to do business with you.

Effective loyalty apps provide a memorable experience through superior loyalty program design, therefore increasing guest engagement and becoming “sticky.” Let's look at how to build a sticky experience with these tips.

What Is a Restaurant Loyalty App?  

A restaurant loyalty app is a mobile platform that rewards customers for their visits, purchases, and engagement with your brand. It typically lets guests earn points, unlock rewards, receive personalized offers, and access conveniences like mobile ordering, reservations, and contactless payment, all from their phones. 

The best loyalty apps go beyond simple points programs. They integrate with your POS, online ordering, and marketing tools to deliver real-time, personalized experiences that keep guests coming back. For restaurant operators, they also provide valuable data on customer behavior, enabling smarter promotions and higher return on marketing spend.

The Foundations of a Winning Loyalty App

For your loyalty app to be effective, it has to be usable. Ensure your loyalty app has a user-friendly design and is easy to navigate. Don’t make your text or images too small, either; customers don’t want to pinch or scroll to get the information they need.  

Integrate your app with other technology like social media or digital wallets. These integrations allow customers to easily pay for their purchases in the app and share offers and programs with their online social circles. 

Consider The Original ChopShop as an example. This salad and sandwich restaurant focused on convenience for its customers by building a way to pay ahead through its loyalty app. As a result, The Original ChopShop’s customers saved time, and the restaurant chain saw over 60,000 app downloads during a four-week holiday campaign.  

Personalization also plays a significant role in the use of loyalty apps. Consumers want offers and contests based on their individual interests. Use your loyalty data to segment your customers by behavior or interest, and don’t just do this once—make it a regular activity driven by your growing business. 

Consider this example: you’re an ice cream retailer with a segment of customers who haven’t purchased in 30 days. Use personalization like a limited-time discount based on the last item they bought to encourage this segment to come back and make a purchase.  

Don’t overlook these three important loyalty app actions that can increase “stickiness” too: 

1. Rewards for signing up: Offer the guest a reward for simply signing up. TGI Friday’s gives guests a free appetizer or free dessert for signing up for its loyalty program. This offer also makes it more convenient for TGI Friday’s guests to sign up while they’re in the restaurant. You could also offer a coupon they could use on their next visit for signing up. 
2. Don’t forget about birthdays: Birthday rewards are a great way to offer your guests personalized experiences. When they sign up, ask your customer for their birthdate. When their birthdate rolls around, offer them a free product or a few free appetizers when they dine at your restaurant on their birthday. Not only do free appetizers get your loyalty member in the door, they also incentivize them to bring other guests with them.  
3. Consider friends: Loyalty members are more likely to do word-of-mouth marketing for your restaurant, why not offer them a discount they can provide their friends? Offering a $10 reward or free appetizer or dessert for friends of loyalty program members creates an unforgettable experience, lets you create a steady stream of new program members and customers and can create a community.

5 Must-Have Loyalty App Features  

To keep guests returning and spending more over time, a loyalty app must combine convenience, personalization, and engagement. Each of the following features can increase repeat visits and customer lifetime value (CLV) in the restaurant industry, and Paytronix offers unique ways to maximize their impact. 

1. User-Friendly, Intuitive Design 

A loyalty app should be simple enough for a first-time user to place an order or redeem rewards without confusion. Clear menus, large touch targets, and smooth navigation reduce friction, leading to more completed orders and higher satisfaction.

For example, chains that simplify their checkout flow often see double-digit increases in completed transactions. 

2. Seamless Integrations with Payment & Social Channels 

Modern diners expect to pay via digital wallets and share deals with friends instantly. Integrating Apple Pay, Google Pay, and social media not only speeds up transactions but also extends your marketing reach. Restaurants that enable in-app payment and sharing can drive both impulse purchases and organic referrals. 

3. Hyperpersonalized Offers 

Generic discounts often fail to motivate customers. Personalized rewards, based on purchase history and behavior, have much higher redemption rates. For instance, sending a targeted “comeback” coupon to customers who haven’t visited in 30 days can reengage dormant guests. 

4. Instant Rewards for Key Moments 

Rewarding customers at important moments, such as sign-up, birthdays, or referrals, builds emotional loyalty and encourages repeat visits. Many restaurants find that offering a small sign-up bonus increases first-month retention while birthday perks often bring in larger party sizes. 

5. Built-in Gamification 

Gamified experiences, such as challenges, badges, or instant-win games, keep customers engaged between purchases. These mechanics encourage more frequent app interactions, which in turn lead to more transactions.

How Much Does a Loyalty App Cost? (Price Ranges and ROI Explained)  

One of the first questions restaurant operators ask when evaluating a loyalty app is, “How much will this cost me, and will it pay off?” The truth is that the right loyalty platform is not just an expense; it’s a revenue generator.  

When executed well, a loyalty app can increase monthly sales by 10%–20%, boost customer lifetime value by up to 4X, and lower marketing costs by making every campaign more targeted and effective. 

Pricing varies depending on the platform’s capabilities, your number of locations, and the depth of features you need. Here’s a realistic breakdown. 

Starter Tier: For Small Operators or Single Locations 

Expect to pay $150–$300 per month for a basic loyalty program that includes a branded app, standard point-based rewards, and basic reporting. This is a great entry point if your goal is to start collecting customer data and encouraging repeat visits without complex integrations. 

Mid-Tier: For Growing Brands with Multiple Locations 

A mid-range loyalty app with advanced segmentation, integration with online ordering, and marketing automation typically costs $500–$1,000 per month. At this level, restaurants often see faster ROI because personalized offers and multi-channel engagement drive higher ticket sizes and repeat orders. 

Enterprise Tier: For Large Chains or Highly Customized Programs 

Enterprise-grade loyalty apps, often including AI-driven personalization, full POS integration, gamification, and robust API access, can range from $1,500–$5,000 per month. While the investment is higher, the potential returns are substantial. Large brands using advanced loyalty strategies often generate millions in incremental annual revenue thanks to deeper customer engagement and retention. 

ROI Perspective 

A well-structured loyalty app can pay for itself quickly. For example, if your average ticket is $25 and the app drives just 400 additional transactions per month, that’s $10,000 in extra revenue, far exceeding even enterprise-level costs.  

With platforms like Paytronix, you can accelerate ROI with features that increase participation rates, redemption frequency, and order size. 

6 Benefits of Paytronix Apps 

Paytronix puts your restaurant in the palm of your guests’ hands. Expand your customer outreach and grow your loyalty program with prompt promotions, responsive features, and an integrated all-in-one platform. 

Let’s break down the main benefits and how they can contribute to growing your business. 

1. Personalized Customer Engagement 

A major advantage of using Paytronix apps is the ability to send targeted and personalized 1:1 messages to customers. We use customer data to engage your local guests through SMS, push notifications, and geofencing.  

Whether for birthday rewards or a limited-time offer, these personalized marketing messages create meaningful connections that make customers feel like they’re valued.

2. Seamless Integration with Your Systems 

Paytronix works with your existing third-party delivery apps so your customers can order, pay, and pick up food all within one single platform. It simplifies restaurant operations and the customer experience, working with restaurants of all sizes. Paytronix makes it simple and easy to connect to your existing systems for fast, easy online ordering and payment solutions. 

3. Insights and Data Analysis Driven by AI 

To truly understand your customer’s behavior, preferences, and spending patterns, we offer real-time AI-driven insights. This data lets you create a successful personalized loyalty program that encourages repeat customers and guest engagement. Using these insights, your restaurant can fine-tune its marketing strategies (including app marketing) and create smart campaigns that resonate with only your most valuable customers. 

4. Scalable Solutions for Restaurants of All Sizes 

Paytronix scales to accommodate growing restaurant businesses of all sizes. Whether it’s your first restaurant loyalty program or you’re looking to expand your existing one alongside your restaurant, Paytronix provides everything you need for customer engagement. Small businesses benefit from simplified loyalty features, while larger brands harness omnichannel marketing and advanced segmentation. 

5. Subscription Models to Drive Recurring Revenue 

Complementing traditional customer loyalty programs, Paytronix offers the option to create subscription models. These programs reward your most loyal customers and encourage multiple return visits. Subscriptions help normalize revenue streams and are useful for businesses looking to foster deeper engagement with existing customers and increase customer lifetime value. 

6. Integrating a Loyalty App 

Choosing an app that integrates with your existing systems and helps you meet your goals is critical. Once you’ve selected an app, plan your integration strategy. Decide how to connect your apps to your existing business systems and note that this choice may require the use of one or more application programming interfaces (APIs) or reconfiguring your entire system.  

Before you begin the integration process, test the app to ensure it does what you need it to. Once you’ve integrated your app with your existing systems, monitor it to ensure that it’s still working as intended.  

Prioritize training your staff during the integration process. You won't meet your goals if your staff doesn’t know how to use the technology.  

Properly train your staff by: 

• Giving Them Enough Time to Learn the Tech: Rushing through the loyalty software setup causes unnecessary mistakes and stress. Give your team plenty of time—ideally a few weeks—to get comfortable with the app. For example, if you run a small cafe, plan training sessions during your quieter hours so staff can explore the app before it goes live with customers. Larger businesses might roll out training in phases across different locations, making sure everyone gets a good understanding of the system. 
• Catering to Different Learning Styles: Not everyone learns the same way. Some love to read and others are more visual and like hands-on learning. Cater to everyone by providing blended learning material. For example, provide a detailed manual for those who prefer reading step-by-step instructions and back it up with video or an in-person demonstration. If you’re training staff in a multi-store or chain environment, conduct group training sessions followed by hands-on practice so every employee gets to learn the new system in a way that works for them. 
• Picking “Staff Champions” to Help Others Get Comfortable: Have staff volunteer or choose those who are genuinely excited about new customer loyalty software to fast-track their learning and then offer to get everyone else up to speed. These will be your staff’s go-to champions for asking questions on the job or training new staff. You can tap into your more tech-aware employees so they become authorities in the new technology, making them approachable and knowledgeable enough to provide peer-to-peer training. This speeds up overall success and makes sure everyone feels comfortable enough to ask questions. 
• Making Support Easy to Find: There are always going to be hiccups, especially once the app is live. To avoid any disruptions, make sure your staff knows exactly how to get help if they run into issues. In a busy restaurant, keeping a quick-reference FAQ sheet or a hotline for tech support on hand can make all the difference, minimizing downtime and keeping things running smoothly so revenue doesn’t take a hit. Give your team the time and resources they need to learn and you’ll make sure your restaurant loyalty software rollout is adopted smoothly by both employees and customers.

How Paytronix Helped the Original ChopShop Boost App Engagement 

When The Original ChopShop, a fast-growing salad, sandwich, and protein bowl brand, wanted to deepen customer engagement, they turned to Paytronix to enrich their loyalty app experience. The goal was simple: make it easier for guests to order, pay, and earn rewards while encouraging more frequent visits. 

Using Paytronix’s integrated mobile ordering and loyalty tools, The Original ChopShop launched a holiday campaign that allowed guests to prepay for meals, skip the line, and unlock personalized rewards. The result was impressive: Over 60,000 app downloads in just four weeks, a surge in first-time loyalty sign-ups, and a measurable lift in repeat order frequency during the campaign period. 

By combining frictionless ordering with targeted offers, the brand kept engagement high even after the promotion ended. This campaign proved that when a loyalty app delivers both convenience and value, guests not only download it, but they keep using it. 

How to Launch and Promote Your Loyalty App  

You’ve chosen your loyalty app provider, integrated it with your systems, and trained your staff. Now it’s time to drive adoption and engagement from day one. A strong promotion plan ensures customers not only download your app but also start using it regularly. 

1. Use a dedicated landing page 

Leverage your existing website or create a dedicated landing page to showcase your loyalty app. Outline the benefits, include screenshots, and make the download links prominent. Show customers exactly what they’ll get by joining.

2. Optimize your app store presence

Just like SEO for websites, App Store Optimization (ASO) helps your app rank higher in searches. Use relevant keywords, write compelling descriptions, and include high-quality visuals or short videos to demonstrate the app in action.

3. Promote through social media and influencers

With most consumers spending over two hours per day on social media, these platforms are ideal for spreading the word. Share behind-the-scenes content, reward highlights, and customer stories. Influencer partnerships can also introduce your app to highly engaged local audiences.

4. Announce via email marketing

Send dedicated launch emails to your subscriber list and prioritize VIP or early-access segments. Include a clear download link and an incentive to get started, such as bonus points or an exclusive reward. 

Paytronix Advantage: When launching with Paytronix, restaurants benefit from dedicated onboarding specialists, ready-to-use promotional templates, and campaign strategy support. From pre-launch teasers to post-launch re-engagement campaigns, Paytronix provides the tools and guidance to ensure your app gains traction quickly.

The Future of Digital Loyalty Programs 

Data is already driving the future of digital loyalty programs. Real-time data-driven insights will influence customer engagement strategies. Brands will increase their use of AI to customize campaigns and rewards.  

Customers expect a seamless experience regardless of where they’re interacting with your brand, including interactions with your brand loyalty program. As a result, more loyalty programs will begin to provide omnichannel campaigns that give customers more consistent, rewarding experiences. 

The future of digital loyalty programs will go beyond rewards and points and focus on emotional loyalty, flexible redemption options, and interactive formats.  

Incentivizing Ongoing Adoption 

Incentivize ongoing app adoption by offering discounts on meals or free items for downloading and using the app. Keep users who downloaded your app engaged by providing new features and using in-app messages to communicate the latest offers and rewards.

Frequently Asked Questions About Loyalty Apps for Restaurants 

Do loyalty programs work for restaurants? 

Yes, loyalty programs are effective for restaurants. They encourage your diners to return by providing excellent loyalty program benefits, such as offering discounts on meals or free items after a certain number of visits. This strategy increases repeat business and builds a list of loyal customers who are more likely to choose your restaurant over competitors.  

Loyalty programs also provide valuable insights into your customers’ preferences, allowing your restaurant to tailor your menu and promotions to better meet diners' needs. 

How do I set up a restaurant rewards program? 

To set up a restaurant rewards program, follow these steps: 

1. Define your goals and what you want to achieve, such as increasing repeat visits or boosting average spending.  
2. Choose a structure for your program, like a point system where customers earn points for each dollar spent or a punch card system that rewards free items after a certain number of visits.  
3. Decide on your rewards. Ensure the rewards are appealing and relevant to your customers, such as discounts, free dishes, or exclusive events.  
4. Promote your loyalty program. Promote your new program through social media, in-store signage, and email newsletters to raise awareness.  
5. Gather feedback. Regularly gather feedback from participants to improve your loyalty program and keep it fresh and engaging.

What is the best loyalty app for restaurants? 

The best loyalty app for your restaurant is one that aligns with your business goals, integrates seamlessly with your POS and ordering systems, and offers robust personalization tools. Many operators choose Paytronix for its combination of AI-driven targeting, built-in marketing automation, and proven track record of increasing customer engagement and spend.

It’s also highly scalable, making it a strong choice whether you have one location or hundreds. 

How do you create a simple loyalty program? 

To create a simple loyalty program, follow these steps: 

1. Determine your goals. Decide what you want to achieve with the program, such as increasing customer retention or boosting sales. 
2. Decide on a structure. Point-based programs are the simplest—giving users one point for every dollar spent.  
3. Select reward types. Offer easy-to-manage rewards that customers value, such as discounts or free items.  
4. Market and champion your program. The simplest and most effective way to market your program is to place eye-catching posters at the checkout area. If you run an online business, prominently feature the loyalty program on your restaurant website or restaurant website builder. 
5. Track participation. Use basic tools, like straightforward analytical dashboards, to monitor customer engagement and adjust as needed. 

What is the average cost of a loyalty program? 

The cost of creating and running a loyalty program ranges from a few hundred dollars to tens of thousands, depending on the complexity of the system.  

If you're a small business with a limited budget, consider a simple approach like a point system that rewards customers for a specific dollar value of purchases. You’ll need to cover the cost of materials, marketing, and the cost of goods sold (COGS) for any freebies you give out, but it remains an affordable option to run.  

On the other hand, if you manage a larger brand and want to invest in a more advanced program, you might consider loyalty programs with mobile apps and out-of-the-box personalization settings. These systems require a larger initial investment but can accelerate customer engagement and retention. 

What is the best example of a loyalty program? 

The best example of a successful loyalty program is Starbucks Rewards. As of 2024, the program has reached an impressive 34.3 million active members in the US, marking a 13% year-over-year growth. Members earn points on every purchase, which can be redeemed for free drinks and food items.  

Starbucks uses its Deep Brew data analytics platform to customize rewards based on customer preferences, ensuring that incentives are relevant to each member. By focusing on personalized communication, Starbucks converts casual customers into die-hard fans on a regular basis, making its loyalty program one of the most imitated in the entire restaurant/food and beverage industry.  

How do I get people to join my loyalty program? 

Here are five ways to get people to join your loyalty program: 

1. Promote the benefits: Clearly communicate the rewards, discounts, or perks that customers can earn by joining your loyalty program. 
2. Provide incentives for joining: Offer a sign up incentive, such as an immediate discount or free item.
3. Make enrollment easy: Ensure your loyalty app has a simple sign-up process that requires minimal effort.
4. Use social media: Use your social media profiles to promote the program and entice people to join.  
5. Train your staff: Train your team to actively promote the loyalty program to customers during their visits.

How much do loyalty apps cost? 

Costs vary depending on features, customization, and scale. Basic apps may start around $150–$300 per month, mid-tier solutions with more integrations and personalization typically run $500–$1,000 per month, and enterprise platforms with advanced AI and gamification can range from $1,500–$5,000-plus per month.

The right app should deliver a measurable ROI that far outweighs the monthly cost. 

What features should I look for in a loyalty app? 

Look for core features such as a user-friendly design, integration with payment and ordering systems, real-time data analytics, and the ability to run targeted promotions. Advanced platforms like Paytronix add value through AI-powered personalization, gamification, and omnichannel campaign capabilities that keep customers engaged and returning. 

Ready to create a loyalty app for your restaurant that your customers will enjoy using? Book a demo now to learn more or check out our mobile app solutions.