CloudKitchens’ Post

Building a Successful Loyalty Program for Your Restaurant In the fiercely competitive restaurant industry, customer retention is as important as customer acquisition. While great food and excellent service are critical, creating a long-term connection with customers often requires going beyond the basics. One proven way to achieve this is by implementing a well-designed loyalty program. A robust loyalty program not only encourages repeat business but also helps restaurants gather valuable customer data and insights, enhancing overall profitability. Read the full post here:

Building customer loyalty is an evergreen restaurant business tactic, and arguably never more important than now. More eateries are leaning into loyalty programs. Here the National Restaurant Association (NRA) offers tips on growing a dedicated customer base.

Don't forget to register for my upcoming webinar, "Adapting Loyalty: How Restaurants are Overcoming Customer Inflation Concerns." We'll take a look at brands that are driving restaurant traffic through the use of innovative "third wave" loyalty programs. The webinar, co-sponsored by Lunchbox, will be held May 1, featuring esteemed industry leaders: -Andrew Rebhun, Chief Experience Officer of CAVA -Michael Montagano, CEO of Dog Haus - Nabeel Alamgir, CEO of Lunchbox Discussion: Are you concerned about the decline in restaurant traffic reported in the latest industry findings? You're not alone. According to the 2024 State of the Industry report by the National Restaurant Association, about 51% of operators experienced a decline in traffic from 2022 to 2023. The good news is that many chains are proactively addressing this challenge by implementing or refining rewards programs. These programs have proven to be effective in driving customer frequency and, ultimately, boosting sales. During the webinar, we will explore how leading chains like CAVA and Dog Haus are adapting their loyalty programs to engage customers and drive frequency. Here are the details: Date/Time: May 1, 3 p.m. Eastern / 12 p.m. Pacific This is an invaluable opportunity to gain insights from industry experts and discover actionable strategies to enhance your restaurant's loyalty initiatives. The audience will have the opportunity to ask questions at the end of the session. We look forward to your participation in this insightful discussion. Register now using the link below: https://lnkd.in/gDWBB5kS

The Secret to Turning First-Time Diners into Loyal Customers In the competitive world of the restaurant industry, attracting customers is just the beginning. The real challenge lies in getting them to come back. One of the most effective strategies to achieve this is by providing an exceptional experience to first-time customers. Here’s the strategy behind why this approach can make a huge impact on your business. Why Focus on First-Time Customers? First-time customers are at a critical juncture. They are forming their first impression of your restaurant, and a memorable experience can turn them into loyal patrons. According to a study by Bain & Company, a 5% increase in customer retention can lead to a 25-95% increase in profits. Therefore, focusing on first-time customers is not just a good practice; it’s a smart business strategy. The Odds and Data. Here’s some compelling data to consider: ➡ Repeat Customers: On average, repeat customers spend 67% more than new customers. ➡ Word of Mouth: Satisfied first-time customers are likely to share their positive experience with others, potentially bringing in more new customers. ➡ Customer Retention Rates: Businesses with high retention rates tend to have higher profit margins. For restaurants, the average retention rate can be around 30%. By targeting first-time customers effectively, you can significantly increase this rate. Let’s break down the numbers: ➡ Cost of Acquisition vs. Retention: Acquiring a new customer can cost five times more than retaining an existing one. By focusing on first-time customers and converting them into repeat patrons, you reduce your overall marketing costs. ➡ Lifetime Value: If a first-time customer spends $30 on their initial visit, and you successfully convert them into a loyal customer who visits twice a month, their annual value jumps to $720. ➡ Impact of Freebies: Offering a free drink or discount might cost you $5 per customer, but the potential return on investment (ROI) from converting a first-time customer into a repeat one is substantial. Implementing the Strategy. ➡ Train Your Staff: Ensure that your staff understands the importance of identifying and delighting first-time customers. Empower them to make decisions that enhance the customer experience. ➡ Monitor and Adjust: Use data analytics to track the effectiveness of your strategies. Adjust your approach based on what works best for your specific customer base. By focusing on first-time customers and providing them with an extra special experience, you can significantly increase your customer retention rates and overall profitability. It’s not just about providing a great meal; it’s about creating a memorable experience that makes them want to come back. #CustomerLoyalty #RestaurantStrategy #FirstTimeCustomers #CustomerRetention #RepeatBusiness #RestaurantIndustry

How do you continue to have customers return to your restaurant when they have many choices to select from? The article below from Modern Restaurant Management (MRM) magazine gives three strategies to help increase your customer retention. All three are great strategies and if you're an emerging brand, I believe a big key is enhancing quality and creating consistency across your brand. If you're a group looking to create more consistency for the brand, I'd love to chat with you about how Gordon Food Service would be a great partner for you. #GFSdelivers #restaurants #brandbuilding

Discover why technology and digital experiences are revolutionizing customer loyalty in the restaurant industry. According to a recent report from the National Restaurant Association these trends are here to stay. Click below to learn more!

It was great working with Evan on the below study! Check out the full article on how you can use loyalty programs to drive growth in the restaurant industry: https://lnkd.in/etqgN6ZV

Did you know over half of restaurant goers aren't using loyalty programs? 🤔 Yet, 35% admit these programs influence their dining choices - it's time to harness this untapped potential! Dive into our latest blog to explore how loyalty software can revolutionize your customer engagement and drive your digital growth. From customization to real-time insights, learn how to choose and leverage the right software for your brand. ⬇️ https://hubs.li/Q02J4Myl0

Restaurants can maintain their relevance and value to customers by refining their loyalty programs. But it goes further than that... Read our thoughts below:

Do you run a restaurant? Check out these Six Essential Tips for Boosting Customer Loyalty in Restaurants! While we don’t necessarily agree with Customer Loyalty programs being the answer, we like their tips around engaging customers and soliciting and acting on feedback.