Customer retention (or lack thereof) can make or break your restaurant.
You could be stationed at the hottest location, have the most viral social media presence, and give 110% to your marketing efforts...
But the impact of those things won’t mean much if you can’t get customers to come back and become loyal regulars.
That’s where a strong restaurant customer retention strategy comes into play — which is exactly what today’s blog is all about (what a coincidence!).
In this blog, we’ll walk you through four restaurant customer retention strategies proven to keep customers coming back time and time (and time) again. We’ll also show you some top-shelf examples of restaurants using these exact retention strategies to inspire your own efforts.
But, before we get into the exciting stuff about customer retention strategies…
We need to talk about the realities of restaurant customer retention, first.
The reality of restaurant customer retention
All restaurant owners and operators know customer retention is vital for success — the doors won’t stay open if people aren’t regularly eating at your restaurant.
But there’s more to restaurant customer retention than just keeping the lights on.
- Customer retention costs 5-6x less than customer acquisition
- Repeat customers spend up to 30% more than one-off customers
- Increasing customer retention by 5% can increase restaurant profit by 25%
… which makes trying out a new restaurant customer retention strategy seem pretty worth it, don’t you think?
Did you know? Repeat customers order up to 45% more through a Craver app.
4 strategies to increase your restaurant’s customer retention
1 — Loyalty Programs
What it is
Put simply, a restaurant loyalty program is a customer retention strategy that rewards your most loyal diners for being your most loyal diners.
Depending on your audience (and your tech stack), a loyalty program can look like anything from a simple, paper punch card to a custom-branded mobile app.
Why it works
- Customers want loyalty programs
- 8 in 10 customers are likely to join a restaurant loyalty program if offered
- Customers get value from loyalty programs
- 96% of customers enrolled in existing loyalty programs say they get “more bang for their buck”
- Customers in loyalty programs reward you back
- 77% of customers buy more from/spend more at places they feel loyal to
Example — McDonald's
“MyMcDonald’s Rewards” is one of the best restaurant loyalty programs in the game.
In 2024 alone, the program saw a 15% increase in members, reaching a record-breaking 175 MyMcDonalds users. Rewards members accounted for 30 billion dollars of last year’s sales — a number the brand plans on increasing to 45 billion in the next two years.
And, the reasons behind their billion-dollar loyalty success?
Strong customer experience (CX) and constant improvements.
The app already offers a stellar CX, with easy-to-earn rewards and expiring points to incentivize purchases… but McDonald’s isn’t afraid to make a good thing better. A range of loyalty improvements are set to roll out this year as part of the brand’s new “Digital Marketing Fund,” including stronger personalization and “next-gen loyalty capabilities.”
2 —Memberships and Subscriptions
What it is
A membership and/or subscription is a restaurant customer retention strategy where customers pay a monthly fee in exchange for a specific product, service, or both.
There aren’t any “rules” about what a restaurant membership or subscription has to include, but many offer perks like free delivery, “bottomless” drinks, or boosted rewards and points.
Why it works
- Customers want value more than anything
- When consumers are picking a new restaurant, their top three considerations are prices, promotions, and discounts
- Customers like exclusive, one-of-a-kind experiences
- 48% of frequent diners say they intentionally look for “exclusive, VIP” events and experiences
- Customers respond well to personalization
- ~34% of customers are willing to take their business somewhere offering more personalized offers than they’re currently receiving
Example — Panera
Panera’s “Unlimited Sip Club” is everything a restaurant subscription should be.
Unlimited coffee, tea, and fountain drinks give members the value they need…
“Sip Club Saturday” deals and surprise offers give members the exclusivity they want…
And tailored deals (like birthday rewards!) give members the personalization they deserve.
It doesn’t take much digging into Panera’s earnings and engagement data to see that their subscription model is paying off, too. Recent reports put the Unlimited Sip Club at over 48 million members (and counting), with members responsible for 25% of the chain’s transactions.
Factor in Panera’s “non-app” initiatives to reward their members — like their giveaway with Pepsi — and it’s no surprise that Unlimited Sip Club is one of the industry’s most revered subscriptions.
Launching a standout restaurant subscription is easier with a standout mobile app.
3 — Personalized Email Marketing
What it is
Restaurant email marketing is one of the most cost-effective, impactful marketing channels (and customer retention strategies!) that connects you with your audience.
Your restaurant can implement email marketing in virtually endless ways, but some of the most common email campaigns include welcome emails, product launch notifications, and discounts.
Why it works
- Customers prefer hearing from restaurants over email
- ~40% of customers listed “email” as their preferred channel for hearing about restaurant promos
- Customers enjoy getting good, relevant emails
- 46% of customers said they’d like getting restaurant emails, but that too many emails or irrelevant offers would make them unsubscribe
- Customers’ purchase decisions are influenced by email
- ~45% of customers reported they’ve been influenced by a marketing email to make a purchase
Example — Chipotle
If you had to pick the one thing that makes Chipotle’s email marketing so good, you probably couldn’t — because it’s good in so many ways.
Their emails are beautiful and well-designed. Their offers are urgency-inspiring and enticing. Their user experience is simple and easy to follow.
And, from an engagement and revenue perspective, they’re really dang effective, too.
Take the “Chipotle Doppelgänger” campaign, for example. In the campaign’s first month, it generated open rates 175% higher than usual and a ridiculous $4.8 million boost in revenue (and no, “one month” isn’t a typo).
I guess we can add “email marketing” to the long list of things Chipotle has mastered… right after their chicken tacos and guac, of course.
4 — Custom Mobile App
What it is
A custom mobile app is a restaurant retention strategy that connects you directly to your customers, allowing them to access your products and items from anywhere at any time.
Every restaurant’s mobile app is unique, but most offer the same core features like online ordering, loyalty/rewards, push notifications, NFC payments, and re-ordering capabilities.
Why it works
- Customers prefer mobile/online ordering
- 49% of customers place repeat orders at least once a week
- Customers want to support restaurants directly
- 7 in 10 customers prefer ordering directly from a restaurant vs a third-party app
- Customers crave convenience (which an app provides)
- Convenience is the #1 thing diners are looking for from their restaurant visits
Example — Hometown Coffee & Juice
Hometown Coffee & Juice is an Illinois favorite serving up delicious beverages, tasty brunch, and a top-tier mobile app experience.
One of the reasons Hometown’s mobile app is so effective is because it perfectly blends their brand’s values and customers’ needs. The app’s design has a friendly, welcoming feel that mirrors Hometown’s community-centered business model, while its features offer customers the speed and ease of service they want and deserve.
Hometown’s commitment to an on-brand, feature-filled mobile app experience is working for them, too.
With ⅓ of the brand’s orders coming through their mobile app and a 4.8-star rating on the App Store, Hometown has clearly found the perfect, app-powered balance between brand alignment and a better customer experience.
Restaurant customer retention? There's an app for that - and it's ours
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