What is a realistic referral k-factor for an F&B loyalty program?

K-factor measures how many new members each existing member brings in per referral cycle. The formula is k = invitations sent per member × conversion rate of those invitations. For F&B, both inputs are constrained — most members will only ever invite 1–3 friends, and conversion of an invite to an enrolled visit is 25–40%.

Healthy independent F&B programs land at k = 0.18–0.28. K above 0.5 is almost always a sign of incentive abuse (one operator referring themselves under different phone numbers, or staff farming sign-ups for the bonus).