Budget-Conscious Restaurants Weigh the Rewards of Loyalty Programs
Loyalty and marketing are generally more nuanced topics in full-service than QSR. No great mystery why. You’re trying to connect experience and digital in a way that’s not as streamlined as a category’s answer to the punch cards of old.
In a year defined by tighter budgets, though, TouchBistro’s survey showed, many full-service operators took a closer look at discretionary spending. Loyalty programs included.
Only 51 percent of respondents said they now offer them, a decline from 63 percent in 2024. The drop, the company noted, was driven primarily by single-location independents managing tight budgets. Multi-unit chains with deeper pockets saw higher adoption rates.
It’s also fair to debate if some independents who jumped on the trend after it proliferated during COVID, realized it was not enough to simply offer a loyalty program. And the effort to optimize didn’t align with the reward. In other terms, loyalty isn’t uniform in execution and the metrics of what makes it successful aren’t, either.
Among those operators who said they have a loyalty program, 49 percent of diners were engaging regularly, slightly higher than 46 percent in 2024—proof these platforms, when done correctly and executed to the right audience with proper resources, continue to encourage meaningful guest behavior.
While personalization remained a priority, operators said they were being more selective about which types produce the best ROI (especially as budgets shrink). Two-thirds (66 percent) said they send guests personalized offers, down from 70 percent the previous year. The types of personalization shifted, too: location-based offers topped the list, followed by offers based on past order history, dietary preferences, and personal details such as birthdays that dominated in 2024.
Types of personalized offers
- Offers based on current location: 48 percent (rise from 46 percent in 2024)
- Offers based on past order history: 44 percent (down from 48 percent)
- Offers based on personal details, like birthdays: 42 percent (down from 51 percent)
- Offers based on dietary preferences: 42 percent (down from 56 percent)
- Offers from related partners/brands: 40 percent (down from 45 percent)
Beyond loyalty, however, operators doubled down on digital presence in 2025, budget issues or not. A full 81 percent said they now have a website, a rise from 69 percent, year-over-year. And virtually all of those who did (98 percent) said they allow customers to view menus online. That’s become table stakes for digital discovery, TouchBistro said.
Social media evolved as well. Instagram staged a comeback, with 70 percent of respondents claiming to use the platform to promote their restaurant. That was 59 percent in 2024.
TouchBistro credited Instagram’s growing role as a place for customers to find places to eat. And that isn’t likely to level off as micro-influencers and food reviewers continue to grab a larger share of the marketing puzzle. Stories and Reels have enabled audiences to step inside locations quickly, and get that firsthand peek from creators they trust.
TikTok maintained 2024 gains at 48 percent. Facebook was steady at 73 percent. The clearest decline came from X, which dropped to 42 percent from 56 percent, “suggesting operators are concentrating their social media efforts on platforms where food and restaurant-focused marketing content performs best.”
Social media platforms used
- Facebook 73 percent
- Instagram: 70 percent
- TikTok: 48 percent
- X: 42 percent
- Snapchat: 28 percent
The larger picture points to a marketing landscape sloping toward owned digital channels where operators retain control (websites and social media). At the same time, paid loyalty programs are getting reexamined after an initial rush. In all, it’s essential, TouchBistro said, for operators to show up where diners discover restaurants.
So, refine loyalty programs; don’t abandon them. The 49 percent engagement rate among operators who maintained their programs proves loyalty works when it’s built on personalization. Done correctly, it’s still one of the simplest ways to drive repeat business.
Websites, as they become more ubiquitous, need to be seen as digital storefronts. And lastly, focus on Instagram and TikTok for discovery. These platforms, the company said, fuel more guest discovery than any other channel today. Facebook is more of a communication tool with existing customers while X is a conversation thread centered on current events.
But when it comes to helping customers decide where to eat, it often starts with showing them what it’s like and doing so through authentic voices and snapshots of experience.
Source: FSR
