Multi-restaurant gift cards are a powerful tool you can use to attract customers who want both variety and flexibility when it comes to buying a gift. Instead of purchasing a gift card that’s valid for a single restaurant, customers can buy a multi-restaurant gift card that recipients can use at their choice of several restaurants.
Recent market trends show that there’s an increased consumer interest in gift cards that offer broader options. 74% of customers prefer to buy a multi-brand gift card. Participating in a multi-restaurant gift card program helps set your restaurant apart in an ever-more-crowded marketplace.
Benefits of Multi-Restaurant Gift Cards
There are many benefits of offering multi-restaurant gift cards in a competitive market. Multi-restaurant gift cards attract a wider customer base, as customers are more likely to buy gift cards that recipients can use at a variety of locations. Gift givers do not need to know the exact preferences of the recipient since they use them at several different places. This makes them ideal for gifts, rewards, and personal use.
Many of these customers may never have even heard of or visited your restaurant. This is an effortless way to introduce patrons to new dining experiences they may not have considered otherwise. Such multi-restaurant gift cards expand the customer base for all participating restaurants.
Strategies for Partnering with Other Restaurants
Starting a multi-restaurant gift card program requires partnering with other restaurants that are willing to participate. Instead of reaching out to competitors, choose multiple restaurants that complement yours in cuisine, price point, and/or dining style.
For example, a farm-to-table restaurant that emphasizes fresh, local ingredients could partner with a local craft brewery. There’s no real competition there, as customers look for different menu items and experiences when visiting either of these businesses. In addition, and perhaps more importantly, customers who like one likely enjoy the other.
Be upfront and clear with the logistical aspects of the proposed partnership. Detail how you plan to share revenue and brand the multi-restaurant gift card. Provide information on how you propose to promote it, but always be open-minded. Your partners may bring some great ideas on other promotional efforts.
Selling Multi-Restaurant EGift Cards
In addition to physical gift cards, it’s also possible to sell multi-restaurant eGift cards digitally. It’s an easy way for customers to purchase last-minute gifts. With instant delivery, it’s possible to remotely send a gift anywhere at any time. Many tech-savvy consumers prefer digital gift cards over physical ones.
From a business standpoint, there are many advantages for restaurants that decide to offer digital gift cards. You’ll benefit from enhanced tracking and analytics across multiple venues, which provides valuable insights into customer preferences and spending habits.
Technology Platforms to Facilitate eGift Card Management
There are several different technology platforms that help manage eGift cards, from issuing to redeeming eGift cards across multiple restaurants. Prioritize a platform that’s easy to integrate with your existing POS system, as you don’t want to select one that isn’t compatible.
Aim for a solution that’s user-friendly for both employees and customers. You want to make the process of buying a gift card as easy and straightforward as possible. The wrong kind of friction in the checkout process could hurt sales.
It’s also a good idea to ensure that any technology you introduce into your business has robust security measures. It must protect against fraud and unauthorized access. Otherwise, your entire multi-restaurant gift card program could be in jeopardy.
Two popular platforms to consider include:
- Paytronix offers efficient gift card and comp card creation and management for fast food, quick-service, and full-service restaurants. We also offer industry-leading AI, marketing automation, and strategy and analytics services to maximize your available data and drive more top-line and bottom-line growth.
- Square is a restaurant POS and hardware solutions provider that simplifies your gift card sales process in your brand's physical locations.
The Bottom Line
Multi-restaurant gift cards have tremendous potential for helping your restaurant grow by reaching new diners who may not have otherwise visited. Customers who regularly frequent the other restaurants participating in your multi-restaurant gift card may decide to try out your restaurant because of this increased visibility and brand exposure.
An estimated 21% of gift cards purchased are redeemable at multiple businesses. If your restaurant doesn’t participate in a multi-restaurant gift card, you could miss out on these sales.
These gift card programs tend to encourage repeat business. Customers may grab something to eat when they come in to purchase a physical gift card. When gift card recipients have a great time at your restaurant, they are more likely to return to eat and to let other people know about their positive experiences.
All gift card programs help to generate upfront profit, as the gift giver pays the total value of the gift when they buy it. This upfront cash value occurs despite the fact gift card revenue is considered deferred revenue once the card is redeemed.
Regardless of whether the recipient ever redeems the gift card, the purchase will immediately help with your restaurant’s cash flow. According to Capital One, 61% of gift card recipients spend more than the gift card value when they redeem it.
Launch Your First or Next Gift Card Program
To launch a multi-gift card program, you first need to find other restaurant partners willing to participate. Once you find the right partners, ensure that all partners are aligned with the program’s goals and agree on the terms and conditions associated with the gift card. Make sure that all terms and conditions are clearly outlined for customers, too.
Utilize targeted marketing strategies to reach potential buyers. You can use limited time offers or bonus card promotions as part of your marketing strategy. Selling multi-restaurant gift cards at local events and festivals can boost visibility for all restaurants that participate.
If you don’t know where to start with your restaurant’s gift card strategy, check out Paytronix’s Marketer’s Guide to Gift Card Strategy. It’s one of the many resources that we have available online to help restaurant owners and marketing managers learn how to use technology to grow their businesses.
