Glossary /
Loyalty program
Written by PEKO Team.Last updated: 2026. 05. 21..
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: 2026. 05. 01.
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.
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.
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