How to run a loyalty scheme for your café or restaurant (UK guide)

A loyalty scheme is how UK cafés, bakeries and restaurants turn a first visit into a habit. In the US the same thing is called a rewards program or punch card. Whatever you call it, the ingredients are the same: a simple rule, a reward worth coming back for, and a card customers actually have with them. This guide walks through setting one up for an independent food business in the UK.

What is a loyalty scheme?

A loyalty scheme rewards customers for coming back. The customer gets a card, collects a stamp or points each time they visit, and earns a reward such as a free coffee or a free main. For the business, the scheme gives regulars a reason to choose you over the place next door, and gives you a way to stay in touch between visits.

The three common types

Stamp card. One stamp per visit or per item, reward after a set number. Best when orders are similar in value: coffee, bubble tea, a lunch deal. The classic "buy nine, get the tenth free" coffee loyalty card is a stamp card.

Points scheme. Points per pound spent, with rewards at set levels. Best when bills vary a lot, as in most restaurants and brunch spots. See stamps vs points for help choosing.

Membership. A members card with perks, such as early access to new dishes or a members' evening. Suits places with a loyal community and a strong identity.

How to set up a loyalty scheme in five steps

1. Pick the reward first. Decide what you are comfortable giving away and how often. A free hot drink after nine paid ones is a common starting point for a café.
2. Choose the card type. Stamps for similar orders, points for varied ones.
3. Write the rule in one sentence. "One stamp per hot drink, tenth drink free." Staff should be able to explain it in the time it takes to tap a card.
4. Make joining effortless. A QR code on the counter, on the table and in your Instagram bio. The customer scans it once and the card is saved to their phone.
5. Tell people. Train staff to mention it at the till for the first few weeks, and put the poster where people queue.

Paper or digital?

Paper stamp cards cost almost nothing to print, but they get lost, they get copied and they tell you nothing about your customers. A digital loyalty card in Apple Wallet or Google Wallet fixes those three problems:

• It lives on the phone the customer already uses to pay, so it is there at the till.
• A stamp is only added when staff scan the card, and every stamp is logged.
• Every card saved builds your customer list, and you can send lock-screen messages to card holders when you have news, such as a new seasonal menu.

There is no app for customers to download. That matters, because most people will not install an app for one café.

Rules and good practice in the UK

• Be clear about the terms. State the reward, how stamps are earned and any limits, and keep them easy to find.
• Respect privacy. If you collect names and email addresses, say what you use them for and only send marketing messages to people who agreed to receive them.
• Keep the promise. If you change the scheme, honour stamps already collected.

This is general guidance, not legal advice. If you are unsure about your obligations, check with an adviser.

What does a loyalty scheme cost?

Printed cards and a custom stamp cost very little. Digital schemes are usually a monthly subscription. Loyalstack's Merchant plan is $29/mo for one location, billed monthly in US dollars, with unlimited cards, customers, team seats and push notifications. Multi-site food brands use the Franchise plan at $99/mo for 3 locations, then $10/mo per extra location. Both start with a 14-day free trial, no credit card required.

Get started

Most UK cafés and restaurants can launch a wallet-based loyalty scheme in about 10 minutes: design the card, print the QR code and start stamping. Browse loyalty program examples for reward ideas, or see Loyalstack for cafés, bakeries and restaurants.