Gift cards enhance your restaurant’s profit margins and increases customer loyalty.
The holidays are upon us. Gift cards are a popular option as an easy go-to gift item and are often purchased to be given away as prizes for company holiday parties. Offering gift cards at your restaurant can benefit your business in many ways. Here are four reasons you should offer and accept gift cards at your restaurant this holiday season.
1. Increased Revenue
Once a gift card is sold, your profit margin has already been enhanced. Other factors that come into play: guests tend to either spend more or less money than the dollar amount on their gift card. If their bill comes to more than what is on the card during their visit, they will pay out of pocket to cover what remains. If they spend less than what is on the card, they are more than likely to return to ensure they don’t waste the remaining balance. Both situations mean more revenue for your business.
Keep in mind that gift cards can also be reloaded. Encouraging customers to reload their cards helps your restaurant save the cost of ordering more cards and can even defray the costs of debit and credit transaction fees that eat into profits.
2. Loyalty
The most successful gift card programs are designed to keep customers coming back to your restaurant. For example, Starbucks accredits almost 3.5 percent of sales volume to its gift card program. Designing your gift card program in a way that incentivizes customers to reload their gift cards turns an otherwise singular purchase or visit into frequent purchases and returned visits.
3. Free Advertising
A customized gift card, designed with your restaurant’s branding is a great way to effortlessly advertise your business. The simple act of giving a gift card itself is inherently (albeit inadvertently) a form of marketing that has the potential to help you acquire new customers.
4. Fast and Secure
Paper gift certificates are easy to replicate. A forged paper gift certificate could lead to losses for your business. Gift cards, on the other hand, are very difficult to replicate and are less likely to be lost. If your gift card strategy includes digital gift cards made available through a smart phone app, a gift card buyer can purchase and give their e-gifts anytime, anywhere. This ease and speed is a huge draw for busy holiday gift-givers.
Gift cards are an easy way to enhance profit margins for your restaurant during the holidays and beyond. With a strategic gift card plan in place, you can increase repeat customers and visits and enhance customer loyalty along with profit margins.
If you’re interested in offering and accepting gift cards this holiday season, Leebro POS can help! Don’t delay. E-mail us today to discuss gift card options this holiday season!
