You’ve probably heard that loyalty programs are a good idea for restaurants…
But what about restaurant memberships? How are they different? And which one’s better?
In this blog, we’ll compare restaurant memberships and loyalty programs, highlighting the main differences between the two and the pros and cons of each. We’ll also share some tips for deciding whether restaurant memberships or loyalty programs are right for you.
Let’s jump in.
What’s the difference between restaurant memberships and loyalty programs?
Restaurant memberships are a subscription-based service where customers pay a monthly (or annual) fee in exchange for certain rewards and perks. Customers don’t have to “earn” anything with memberships — if they’re paid members, the rewards are automatic.
Restaurant loyalty programs are visit-focused services, where customers sign up for a (typically free) program that earns them rewards and perks. With loyalty programs, earnings are directly tied to visit frequency and/or spend amount. More visits = more rewards.
For a deeper dive on the main differences between restaurant memberships and loyalty programs, check out this handy chart.
| Category | Restaurant Memberships | Restaurant Loyalty Programs |
| Goal | Lock in loyalty and predictable revenue | Encourage repeat visits through rewards |
| Customer Cost | Paid (monthly or annual) | Free |
| Customer Perception | “I’m part of something exclusive.” | “I get to earn rewards as I go.” |
| Examples | Panera Unlimited Sip Club Blood & Sand Membership | MyMcDonald’s Rewards Potbelly Perks |
Pros and cons of restaurant memberships vs loyalty programs
The conversation about memberships versus loyalty programs isn’t a matter of one being better than the other, because both options have good (and less good) features about them.
Here are a few pros and cons of restaurant memberships and loyalty programs to consider before 100% committing to either option.
Pros of restaurant memberships
- They offer great stability as a source of income — With restaurant memberships, you can look forward to a set income on a set interval. That predictability every month (or year) can give you some financial peace of mind.
- They make customers feel exclusive and special — Restaurant memberships help your customers feel like they belong to something special, promoting a sense of exclusivity that they won’t find in a loyalty program.
Cons of restaurant memberships
- They can be a little too exclusive — Not everyone will want to pay a monthly fee for benefits at a restaurant (especially given the rising cost of living these days). It could end up inaccessible to your audience.
Pros of restaurant loyalty programs
- They’re easily accessible to a wider audience — Because restaurant loyalty programs are free to join, anyone and everyone can sign up and reap the benefits. No barriers to entry = no limits on customer enjoyment.
- They’ve been shown to boost sales and orders — Loyalty programs can help generate more income by simplifying the ordering process, encouraging repeat purchases, and boosting average order value.
→ Did you know? Rook Coffee’s repeat customers order 45% more often through Craver.
Cons of restaurant loyalty programs
- They don’t guarantee income or sales —Unlike restaurant memberships, loyalty programs don’t guarantee any monthly (or yearly) income for your restaurant. You can’t lean on them as regular revenue generators.
Restaurant memberships or loyalty programs: which one’s best for you?
So, how can you tell whether restaurant memberships or loyalty programs are better for your business? Well, like most things in life… the answer depends!
If you’re a local or independent restaurant, we recommend starting with a loyalty program.
They’re simple, easy to launch, and they can help you build the sense of community (and momentum) that you need to get those repeat visits. Then, once you start building a base of loyal regulars through your loyalty program, you might consider introducing a membership program — but that only works once you’ve got the foundation built.
If you’re a chain restaurant, you probably already have a loyalty program (and loyal regulars).
The customers who are already loyal to your restaurant may be looking for a new and exciting way to get rewarded… one that’s a little more exclusive. That makes you a great candidate for a restaurant membership! For just a few dollars a month (which your regulars are already spending), they’ll get more out of their loyalty to your business. Then, everyone wins!
Ultimately, only you can decide whether restaurant memberships or loyalty programs are right for you and your customers.
So, learn the differences between the two options, consider the pros and cons, and start exploring your options for both programs. You can always adjust later!
Still debating between a restaurant membership and a loyalty program? See how you can do both with Craver.
Q&A
Yes, restaurant loyalty programs absolutely work! 81% of people would join a restaurant loyalty program if it were an option, and 96% of existing loyalty program members feel they get “more bang for their buck.” Learn how to set up a loyalty program in 7 steps with this blog.
What restaurant has the best loyalty program?
Potbelly, McDonald’s, and Krispy Kreme have some of the best restaurant loyalty programs. They’re easy to use, they prioritize customer autonomy, they gamify the rewards experience, and they have short “earning-to-redeeming” pipelines that keep people coming back.
How do restaurant memberships work?
Restaurant memberships are pretty similar to other subscriptions: customers pay a set fee (usually monthly or annually) in exchange for specific services or rewards. That could be 10% off every order, free drink refills, exclusive items… or whatever you want, really!
What restaurants have memberships?
The most famous restaurant membership is Panera Bread’s Unlimited Sip Club. However, Taco Bell, PF Chang’s, and Subway have also had successful restaurant memberships in the past! For more on the best restaurant subscriptions we’ve seen (and why), check out this blog.
