Unique Restaurant Promotion Ideas
6 Reasons Why Restaurant Gift Cards Change The Game
– According to Statista, gift card sales in the United States have increased each year since 2009. Now most small business owners like yourself have never thought of selling gift cards to their restaurant or don’t know how to customize gift cards. Today in this blog, we’re going to break down why your restaurant needs to be selling gift cards and why now is the best time to start.
1. Compete with Local Franchises and National Restaurants
People tend to buy gift cards when they want to give someone money for a holiday or birthday, but put in more work than handing over cash. The idea of offering a gift card allows local customers to not have to travel far to buy a gift card all while supporting local business. If you know of a local brewery that has the best Christmas Ale, you can buy your best friend a six pack for the holidays or give them a gift card to the brewery. You can compete with more corporate restaurants by adding gift card’s to your restaurant’s website and brick and mortar store.
2. Gift Cards are Convenient for your Customers
According to the National Retail Federation, almost 25% of all gift givers elect to give gift cards instead of a traditional present. They also have mentioned that, more than half of all shoppers would like to receive a gift card as a present. Not only is it nice to easily grab a gift card for a loved one, but there is no wrapping or packaging involved either.
3. Outsell Paper Gift Certificates
According to giftcards.com, making the switch from paper gift certificates to plastic cards can cause a 35% to 50% boost in these types of sales. Most business owners that utilize gift certificates have it hidden behind the counter because they’re just pieces of paper. If you take the time and design custom gift cards, display them at checkout or the hostess table, you should see an increase on these cash cows.
4. Getting Customers to Spend More During Visits
According to First Data, customers that used gift cards during visits tend to spend more than the traditional customer that uses their own cash. They saw that gift card customers were less willing to stick to specials and more willing to buy more expensive menu items. They also discovered that 72% of the time they even ended up spending more than the value of the gift card.
5. Drum up New Business
The same study by First Data showed that 11% of gift card receivers mentioned they had never visited the location before.” Typically people dine with others, so you have the opportunity to bring in the receiver AND a friend or two. Another good strategy is offering an incentive for the gift giver as well. An example of this is Buy $100 Gift Card get $10 free. This means the person receiving the $100 will most likely visit and the guest who purchased it receives a $10 gift card of their own.
6. Build Loyalty
You can build loyalty with your guests, especially with an online, reloadable gift card program. Customers can log on, check their balance, reload the card, see what specials you have going on. If the card is tied to rewards, you can boost visits with extras like free appetizers or a beer with a certain number of visits. Gift card programs don’t need to be one-off situations and can be very interacting for your restaurant’s customers.
We hope you enjoyed our 6 Reasons Why Restaurant Gift Cards Change the Game! Check out more blogs on our site!