Glossary /
Loyalty program
Written by Peko Research Team.Last updated: 09/15/2026.
A loyalty program is a structured incentive system that rewards customers for repeat purchases, with the goal of increasing visit frequency and customer lifetime value.
Published: 05/01/2026
Updated September 2026 — A loyalty program is a structured incentive system that rewards customers for repeat purchases, with the goal of increasing visit frequency and customer lifetime value. F&B loyalty programs come in four main shapes: points-per-visit (the most common), tiered status programs (earn perks at silver/gold), subscriptions (pay $X/month for daily perks), and cashback (a percentage credited on every spend).
Quick facts
- Definition
- A loyalty program is a structured incentive system that rewards customers for repeat purchases, with the goal of increasing visit frequency and customer lifetime value.
- Why it matters
- F&B loyalty programs come in four main shapes: points-per-visit (the most common), tiered status programs (earn perks at silver/gold), subscriptions (pay $X/month for daily perks), and cashback (a percentage credited on every spend).
- Related terms
- Customer churn, Win-back campaign, Customer Lifetime Value (CLV)
F&B loyalty programs come in four main shapes: points-per-visit (the most common), tiered status programs (earn perks at silver/gold), subscriptions (pay $X/month for daily perks), and cashback (a percentage credited on every spend).
The biggest mistake operators make is treating the loyalty program as the entire retention strategy. A points balance gives someone a reason to come back when they were already going to. It does very little for the 60% of guests who silently drift away.
Modern loyalty stacks pair a simple points or stamp mechanic with AI-driven retention: the points create a reason to opt in and share data, and the AI uses that data to predict and prevent churn.
Numbers on this page: named sources are listed below; figures without a named source are PEKO merchant data, Vietnam, Jan 2024 – Jun 2026, or PEKO estimates where modelled. See the datasets behind these numbers.
FAQ
What is the most effective loyalty program type for cafés?
Simple stamp/points cards combined with automated win-back outperform complex tiered programs for most independent cafés. Complexity reduces sign-up rates and increases support load.
How much does a loyalty program cost a restaurant?
Software cost ranges from free (with limits) to $50–$300/month per location. The bigger cost is the discount margin given away — typically 5–10% of redeemed spend. Programs paired with churn-prevention typically pay back within 60 days.
Sources
The definitions and figures on this page reference the sources below:
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