The Power of Dining Gift Cards for Your Restaurant

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In the competitive landscape of the restaurant industry, finding innovative ways to boost profits and drive growth is essential. One often-overlooked strategy is the effective use of gift cards. As a restaurant owner or hospitality manager, understanding the potential of dining gift cards can significantly impact your bottom line. This blog post will explore how gift cards can enhance your restaurant’s profitability, attract new customers, and foster loyalty among existing patrons. 

The Financial Upside of Gift Cards

Gift cards are not just a convenient option for customers; they also represent a unique opportunity for restaurants to increase revenue.

When customers purchase gift cards, they often spend more than the card’s value when redeeming it. According to industry research, customers typically spend an additional 20-30% beyond the value of their gift card. This means that a $50 gift card could lead to a $65 or $70 transaction, significantly boosting your sales.

On top of that, up to 27% of gift cards are never redeemed. That’s instant profits without overhead cost. 

Moreover, gift cards can help you manage cash flow. When customers buy gift cards, you receive immediate cash, which can be reinvested into your business. This upfront revenue can be particularly beneficial during slower periods, allowing you to maintain operations and invest in marketing or staff training. 

The Importance of Marketing Your Gift Cards

Attracting New Customers

Gift cards serve as an excellent marketing tool to attract new customers. When someone receives a gift card, they are likely to visit your restaurant for the first time, bringing along friends or family. This not only increases your customer base but also enhances your brand visibility.  

 To maximise this potential, consider promoting your gift cards during holidays, special occasions, or local events.

Creating attractive packaging and offering themed gift cards can also entice customers to purchase them as presents. Think fun ideas like “Father’s Day steak stash” or “Mardi Gras money” and “Bachelor Party Bucks”.

Additionally, consider partnering with local businesses to offer joint promotions, further expanding your reach. 

The Financial Upside of Gift Cards

Fostering Customer Loyalty

Gift cards can also play a crucial role in building customer loyalty. When customers receive a gift card, they are more likely to return to your restaurant, especially if they have a positive experience. To encourage repeat visits, consider implementing a loyalty programme that rewards customers for using their gift cards.

For instance, you could offer a discount on their next meal or a complimentary dessert when they redeem their gift card. 

Furthermore, promoting online gift cards can enhance convenience for your customers.

In today’s digital age, many consumers prefer the ease of purchasing e-gift cards. By offering online gift cards, you can cater to this demand and reach a broader audience.

Ensure that your website is user-friendly and that the purchasing process is seamless to encourage more customers to buy gift cards. 

Pro tip: Using an integrated gift card system that works with your online booking platform is a seamless way for you to manage both reservations and gift cards.

Encourage your customers to book a table online and buy a gift card while they’re at it.

The Importance of Marketing Your Gift Cards

To fully leverage the benefits of gift cards, it is essential to market them effectively. Use your social media platforms, email newsletters, and in-house signage to promote your gift card offerings. Highlight the advantages of gift cards, such as their versatility and the joy of giving a dining experience.  

Consider creating limited-time promotions or discounts on gift card purchases to create urgency. For example, offering a $10 bonus for every $50 gift card purchased could incentivise customers to buy more.     

Dining gift cards are a powerful tool for restaurants

As you consider implementing or expanding your gift card programme, remember that the key to success lies in creating a seamless experience for your customers. Whether through traditional gift cards or e-gift cards, the potential for increased revenue and customer loyalty is immense. 

Found this helpful? Download the full cheat sheet on how to leverage gift cards for your venue to increase profitability. 

Learn how Now Book It can help your venue maximise profits through gift cards. Book a demo today.   

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