Maximizing Gift Card Sales: Innovative Promo Strategies for Restaurants

Key Takeaway: A comprehensive, year-round promotional strategy for physical and digital gift cards will deliver reliable cash flow and increase guest engagement.

Restaurant gift cards have evolved from a standard hospitality offering into a powerful lever for business growth and guest engagement. Their ability to generate immediate revenue, encourage future visits, and foster guest loyalty makes an aggressive gift card strategy essential for forward-thinking operators.

By maintaining a consistent focus on gift card sales, restaurants raise revenue during slower periods and maintain steady cash flow year-round. Operators who wait until the end of the year to heavily promote gift cards are missing out on significant opportunities. While nearly half of all gift card sales occur in the last two months of the year, untapped potential abounds in the other ten.  
 
In this article, we’ll explore effective promotion techniques for physical and digital gift cards, as well as universal strategies to increase your gift card sales overall. 

Hands-On Success: Strategies for Physical Gift Card Promotions 

While digital platforms offer new opportunities for gift card growth, physical gift cards still outsell digital cards by a two-to-one margin, according to research from Bank of America. They offer a tangible gift-giving experience and can be a valuable impulse purchase when prominently displayed.  

Effective promotion and more sales of physical gift cards require a blend of visual appeal, strategic placement, and creative marketing: 

• In-Store Visibility—Capturing Guest Attention: Don’t underestimate the impact of in-store promotion. Use eye-catching table tents, counter cards, and posters to remind guests about your gift card options. Train your staff to mention gift cards during their guest interactions.
  

• Packaging and Design—Crafting Gift-Worthy Experiences: Invest in eye-catching designs that reflect your brand and commemorate various occasions, such as Valentine’s Day, Easter, Mother’s Day, Father’s Day birthdays, and graduation. Offer special packaging or gift-wrapping options to make the experience more meaningful and celebratory.
  

• Gift Card Bundles—Adding Value to Boost Sales: Create appealing bundles by pairing gift cards with popular menu items or branded merchandise. For example, offer a $50 gift card with a signature sauce or a branded mug. 

• Surprise and Delight—Creating Buzz with Unique Promotions: At the end of 2022, Chipotle found success with a mystery-box promotion that included a stainless steel gift card valued at $500. Anyone who ordered a mystery box within the first 48 hours of the promotion launch had the chance to receive one with the limited-edition gift card inside.

• Direct Mail Campaigns—Targeting Local Guests: Use personalized mailings to promote gift card offers to guests who live near your stores. Include gift card promotions in your regular mailers or local newspaper inserts. Breakthroughs in precision targeting have made direct mail a high-performance channel with real-time analytics, and even small brands can achieve a good return on ad spend (ROAS through services like Every Door Direct Mail from the U.S. Post Office.   

• Third-Party Partnerships—Collaborative Growth: Gift card distribution companies, such as Blackhawk Network and InComm Payments, help operators promote gift cards in outlets like grocery stores, drug stores, and big-box stores, extending reach and visibility. 

Virtual Victories: Effective Techniques for Digital Gift Card Promotions 

Digital gift cards have been growing in popularity, offering convenience and instant delivery that align with our increasingly online and mobile lifestyles. While more people still buy physical gift cards, Bank of America reported that, in most cases, digital gift cards have higher dollar amounts. They’re also easily reloadable, which encourages more frequent visits and fosters long-term customer value:

According to Bank of America, digital gift cards hold more value than physical gift cards in most cases. 

Promoting digital gift cards effectively requires leveraging your online presence and digital marketing channels. The following seven strategies will help you generate more digital gift card sales by tapping into the power of technology and online consumer behavior: 

1. Online Presence: Creating a Digital Storefront  
Ensure your restaurant website builder prominently features digital gift cards with an easy-to-use online ordering system that enables card account management, including balance checks and reloading. Use pop-ups or banners to highlight current gift card promotions. 

2. Buying Process: Streamlining the Guest Experience 
Your digital gift card storefront should make purchasing fast and fun. Offer design choices and the ability to leave a personalized message to the recipient.

3. Group Gift Cards: Encouraging Collaborative Gifting 
One of our clients, Hopdoddy Burger Bar, lets groups of friends, co-workers, and family members pitch in to give a group gift: 

4. Social Media Campaigns: Engaging Guests in Meaningful Ways  
Create content showcasing the experiential benefits of your digital gift cards. Run contests encouraging guests to share who they give gift cards to and what they buy with them. 

5. Email Marketing: Leveraging Your Customer Database  
Send targeted, personalized campaigns to your email list, highlighting the convenience of digital gift cards. Create urgency with limited-time offers and create audience segments based on past behaviors and preferences.

6. Mobile App Integration: On-the-Go Purchasing and Redemption  
If you have a mobile app, make gift card purchase, redemption, and reloading a seamless part of the experience. Use push notifications to promote special gift card offers. 

7. Influencer Partnerships: Expanding Reach  
Partner with food bloggers and local influencers to promote your digital gift cards. Give them unique discount codes to share with their followers.

Dual-Channel Dynamism: Promotional Strategies for All Gift Card Types  

While physical and digital gift cards each have unique promotional needs, many strategies can be effective for both formats. These universal approaches focus on timing, value, and integration with your overall marketing efforts. 

By implementing these seven tactics, you’ll create a cohesive gift card program that appeals to the widest, most relevant range of guests: 

1. Seasonal Sensations—Timing Promotions for Maximum Impact: Tailor your gift card promotions to major holidays and events. Create exclusive offers for graduation season, Valentine’s Day, and year-end holidays. Also consider running promotions around back-to-college, one of the largest shopping events of the year. According to Statista, U.S. consumers in 2024 are expected to spend $94 on gift cards for college students.
   
2. Urgency Unleashed—Leveraging Limited-Time Offers: Run flash sales or limited-time promotions to create urgency. For example, offer a 10% bonus on all gift card purchases during a 24-hour period. One of our clients, Duffy’s Sports Grill, conducts flash sales three times a year, offering bonus dollars for every gift card purchase. The events drive a surge in gift card purchases and deliver healthy cash flow for the chain. 
3. Loyalty Lift—Integrating Gift Cards with Rewards Programs: Loyalty programs provide an ideal platform for gift card promotions, as they allow you to target your most engaged guests and leverage their existing connection to your brand. Offer extra reward dollars for loyalty program members who purchase gift cards. You could also run contests for loyalty program members who buy the most gift cards during each month. 
   
4. Self-Indulgence Surge—Capitalizing on the “Treat Yourself” Trend: A little self-care goes a long way. Tap into the growing "treat yourself" trend by offering incentives for guests to buy gift cards for themselves. The self-gifting phenomenon is gaining traction, with Blackhawk Network data reporting that 45% of consumers plan to purchase gift cards for personal use in 2024.  
5. Corporate Connections—Tapping into Business Bulk Purchases: Corporate gift card sales can boost your overall gift card revenue, as businesses often make large purchases for employee rewards and customer appreciation. Provide incentives and include custom branding options for large orders.
   
6. Bonus Bonanza—Craft Compelling Discount Strategies: 
   Implement attractive discounting strategies to incentivize larger gift card purchases. A popular approach is “Buy a $100 gift card, get a $20 gift card free.” You can vary the bonus amount based on purchase level (e.g., $10 bonus for $50, $30 for $150, etc.). 
7. Economic Empathy and Adapting to Financial Realities: Consider offering varied gift card denominations to cater to different budgets and address economic concerns. You can also make gift card amounts unlimited, so guests can choose any dollar amount they want. Inform your accountant of all of these changes so there aren't any surprises during gift card accounting and gift card tax season.

Frequently Asked Questions About Gift Card Promotion Strategies 

How do I increase gift card sales? 

To increase gift card sales at your restaurant, offer gift cards at all key customer touchpoints. This includes everywhere your customer interacts with your business, such as on social media pages, your website, and on your menus. 

Add prominent signs and gift card displays near your POS system or cash register so customers remember your restaurant offers gift cards. It may serve as a reminder to pick up one as a last-minute gift. 

Train employees to mention gift cards during customer interactions. Have employees mention promotions or the availability of gift cards during checkout. While you don’t want to be too pushy or promotional to customers, some customers will want to know. Make it easy for customers to purchase gift cards online and in person. Ensure your website features a prominent link to buy digital or physical gift cards. 

Offering incentives also encourages customers to buy gift cards. For example, provide a small bonus card for the purchaser—such as a $10 gift card with every $50 purchase. This not only motivates sales but increases the likelihood of repeat visits. 

Partner with local businesses or non-profits to promote your gift cards to a wider audience. Consider bundling them with other local products or experiences to create unique packages.  

How do I promote my gift card offers? 

Promote gift cards by incorporating them into all your marketing channels. Feature gift cards prominently on your website’s homepage and use social media posts, stories, and ads to highlight them. 

Include reminders about gift cards in email newsletters, especially during holidays or special occasions like birthdays and anniversaries. Customers may otherwise forget it’s an option. 

Incorporate in-store advertising into your promotional plan. Use table tents, posters, or QR codes to link directly to online gift card sales. 

Train your servers and staff to mention gift cards during interactions with customers, especially when they’re celebrating special occasions. Keep track of important customer dates in your CRM tool, if possible. Personal recommendations from your team can encourage customers to make a purchase. 

Collaborate with influencers or food bloggers in your area to showcase your gift card offerings. They’ll spread the word about how easy and versatile your gift cards are. Promotions like “Dinner for Two” gift card bundles or holiday-themed designs also drive sales. 

How is selling gift cards profitable?  

Gift cards provide upfront revenue, offering immediate cash flow to your restaurant. Since they’re prepaid, you benefit from the funds long before the gift card is redeemed, which helps cover operational expenses now. 

When customers redeem gift cards, they often spend more than the card's value. For instance, someone with a $50 gift card might order $70 worth of food and drinks. It’s unlikely that they’ll be able to purchase their meal for the exact amount. 

Unredeemed gift card balances, known as "breakage," add to your profitability. While it's important to honor every gift card, a percentage of cards usually goes unused or are not fully redeemed.  

Gift cards help attract new customers and encourage repeat visits. A recipient might visit your restaurant for the first time and have a positive experience. This leads them to come back again in the future. 

Gift Card Promotions Drive Revenue

A comprehensive gift card strategy integrates both physical and digital offerings, using various channels to maximize reach and effectiveness. Track performance and adjust tactics accordingly, whether using eye-catching in-store displays, engaging social media campaigns, or irresistible bonus offers. 

Success hinges on creating enticing offers, effective communication, and a smooth purchase process. And when you do it right, aggressive gift card promotion offers multiple benefits: 

1. Immediate Revenue: Instant boost to your bottom line 
2. Overspend Effect: Guests often spend beyond card value, increasing revenue 
3. New Customer Acquisition: Introduces your brand to new customers 
4. Future Sales Security: Secures future visits, benefiting your restaurant and your guests 

Paytronix leads in gift card solutions and other guest engagement strategies, expertly integrating gift cards, loyalty, and online ordering into a cohesive, customer-centric ecosystem. Contact us today for a personalized demo and learn how to create meaningful guest connections and increase revenue with gift cards.