Most restaurants rely on discounts to drive traffic, but broad “blast to everyone” promotions create a problem: they bring in guests who would have visited anyway while draining margin on unnecessary incentives.
That’s the shift happening going into 2026. More restaurant brands (specially multi-unit groups in the 5 to 25 location range) are moving from blanket promotions to smart targeting that sends fewer discounts, but to the right people, at the right time.
It works because it uses real guest behavior to determine who actually needs an offer to come back. Instead of giving away margin across the board, restaurants focus on the guests most likely to respond. The result is cleaner campaigns, stronger ROI, and more frequent return visits.
Below, we break down how this approach works, why it’s outperforming traditional discount strategies, and why it’s becoming the new baseline for growth in 2026.
Why Broad Discounts No Longer Work
General discounts feel simple, but they also:
- give away margin to guests who would have visited without an offer
- train customers to wait for deals
- inflate discount liability without adding more visits
- fail to build long-term loyalty
- make it harder to measure true ROI
Broad promotions create noise, not loyalty.
What Smart Targeting Actually Does
Smart targeting personalizes incentives using real guest data. Instead of guessing who might show up, brands send the right offer to:
- guests who haven’t visited in a while
- low-frequency guests who need a nudge
- high-value guests who deserve tailored recognition
- loyalty members who respond to certain menu items
- first-time digital visitors who need follow-through
This lets teams reduce discount volume while increasing conversions from the offers they do send.
Fewer, smarter incentives. Better results.
How It Cuts Discount Waste
The biggest benefit restaurants see early is more control.
Smart targeting streamlines spend by sending incentives only when the data shows they’re needed. That means:
- fewer unnecessary discounts
- reduced marketing waste
- higher redemption rates
- more profitable campaigns
- clearer visibility into what’s actually working
Campaigns become leaner without sacrificing traffic.
Why Personalized Offers Drive More Repeat Visits
Today’s guests expect restaurants to “remember” them. When incentivized using their actual habits (e.g., favorite items, usual order patterns, visit frequency) the experience feels intentional.
Brands are using smart targeting to:
- re-engage guests before they drift away
- celebrate loyalty moments and milestones
- promote items guests are likely to try
- deliver offers that feel personal, not generic
Personal relevance builds loyalty faster than any blanket discount ever could.
Why This Works for Lean Teams
Most small to medium-sized restaurant groups don’t have built-out marketing departments. Smart targeting succeeds because it reduces workload for your teams rather than creating more.
Automation handles:
- segmentation
- offer delivery
- follow-up messaging
- lifecycle campaigns
- multi-location consistency
Teams get enterprise-level marketing with far fewer manual steps.
A Strategy Built to Scale in 2026
Brands preparing for growth in 2026 need strategies that work whether they have 5 stores or 50+. Scale naturally by:
- protecting margins
- building healthy repeat-visit habits
- reducing unnecessary marketing spend
- creating consistent experiences across locations
- giving leaders reliable data for smarter decisions
The earlier a brand adopts it, the stronger their compounding returns over time.
What Restaurants Are Seeing After Making the Shift
Across the small to medium restaurant space, teams adopting advanced targeting are seeing:
- 2-3x higher repeat visits
- lower discount spend
- stronger loyalty participation
- higher redemption rates
- easier, more predictable revenue patterns
- improved guest satisfaction
2026 Is the Year to Rebuild Smarter
The brands winning in 2026 are moving away from broad discounting and toward targeted, data-driven incentives.
Get the Full Picture
Want to see the data behind these trends? Download the 2025 Restaurant Loyalty Insights Report to explore how top-performing brands are cutting discount waste, improving redemption, and building stronger repeat business.
