How to Build a Restaurant Referral Program

A restaurant referral program is essential for client acquisition, as 61% of diners trust recommendations from friends, family, and coworkers. It encourages customers to share their experiences and rewards them for bringing in new guests. Personal recommendations are more effective than influencers or review platforms, which only 22% and 15% of diners trust, respectively.

Referral Program

The importance of a restaurant referral program

A well-designed referral program does more than just attract new customers—it can transform loyal diners into powerful advocates, driving new business to your restaurant.

Here’s why it matters:

1. Boosts word-of-mouth promotion: Referral programs formalize and reward word-of-mouth marketing, making your most loyal customers even more likely to recommend your restaurant.

2. Turns customers into super fans: People love to feel appreciated. Offering exclusive perks or special events for referrals can deepen customer loyalty and turn casual diners into dedicated fans.

3. Promotes customer engagement: Referral marketing invites customers to be a part of your restaurant’s story, helping create a community atmosphere that encourages them to share your brand on social media.

4. Provides a competitive edge: Offering a referral program shows you value your customers, giving you an advantage over restaurants that don’t have one.

5. Offers valuable insights: By tracking referrals, you gain valuable data about your customers, enabling you to create personalized, targeted offers that appeal to your most loyal advocates. Restaurant owners can utilize this guest data to identify and segment high-value customers for targeted marketing efforts.

Vouchers for guests

Benefits of a referral program

A referral program can boost your restaurant’s customer base and revenue by incentivizing existing customers to bring in new ones. It fosters loyalty by rewarding repeat customers and provides insights into customer preferences, helping you refine your marketing efforts. This strategy supports growth and keeps your restaurant competitive.

Setting up a referral program

Setting up a referral program is simple and can grow your customer base. Start by defining your goals and target audience. Choose the type of customers you want to refer others and decide on incentives to motivate them. Then, pick a referral structure, like a tiered system or flat-rate bonus. Finally, use a POS system or CRM tools to track referrals and reward participants efficiently. Ensure that your bank account is set up in your POS system or CRM tools to facilitate direct deposit payments for referral bonuses.

Referral program structure

A clear referral program structure drives participation. A clear structure also helps participants understand how they can earn a referral bonus, motivating them to refer more customers. A tiered system rewards customers with higher rewards for more referrals, while a flat-rate bonus keeps things simple. Be transparent about the terms, bonus amount, eligibility, and restrictions to build trust and encourage participation.

Tiers for a loyalty program

Referred restaurant onboarding

Once a referred restaurant joins your program, it's crucial to offer a smooth onboarding process. This includes clear instructions for using your POS system, providing training and support, and ensuring access to necessary tools. A seamless onboarding experience helps new partners feel confident, leading to better customer satisfaction and retention. By making onboarding easy, you set the foundation for a positive and productive partnership.

Best practices for building a successful restaurant referral program

Now that you know why a referral program is crucial, here are some tips on how to set one up that drives results:

1. Set clear, measurable goals

Defining goals is essential for tracking the success of your program. Common objectives include:

Attracting new customers
Increasing customer retention
Boosting revenue
Generating positive reviews

Quantifying your goals—such as attracting 50 new visitors per month or increasing repeat business by 20%—makes it easier to evaluate progress and adjust accordingly.

2. Leverage automation

While you can manage a referral program manually, tools like Eat App streamline the process. Automation helps with tracking referrals, distributing rewards, and integrating with your email marketing and CRM systems.

Once set up, your program can run smoothly with minimal ongoing effort. For instance, participants receive a unique referral link to share with friends and family.

Restaurant automation

3. Choose rewards that appeal to your customers

The rewards you offer should be enticing enough to drive participation. Choose incentives that are both sustainable for your business and appealing to your customers.

Consider:

Exclusive Experiences: Chef’s table, priority reservations, or a special tasting menu
Complimentary Items: Free appetizers, desserts, or a champagne toast
Gift Cards: A discount on a future visit

Before deciding on rewards, ask your customers what they would like in return for their referrals. This will help ensure that the rewards are attractive and motivate participation.

4. Tailor Rewards to Customer Preferences

Use CRM tools to segment your customer base and offer rewards that cater to different types of diners. For example, frequent diners might appreciate personalized experiences, while price-sensitive customers may prefer loyalty points or gift cards.

5. Promote your referral program across multiple channels

Ensure your customers know about your referral program by promoting it everywhere. Here’s how:

6. Social Media

Share posts and stories about your referral program, showing real customers enjoying their rewards.

1. Email Marketing: Send targeted emails to highlight the benefits of your program. Include a clear call-to-action (CTA) and reminders to encourage sign-ups.

2. Website: Create a dedicated referral program page with simple instructions on how customers can join and refer others. Use QR codes on menus and promotional materials to make it easy for customers to access.

3. In-Store Promotions: Mention the program on receipts, table tents, or menus. Encourage your servers to talk about the program while interacting with customers.

4. Engage with Influencers and Partners: Collaborate with influencers or local businesses to promote your referral program to a wider audience. Offer them exclusive incentives to share your program with their followers.

5. Track and Optimize: Continuously monitor your program’s performance and make adjustments as needed. Track key metrics such as:

Number of referrals
Redemption rates of rewards
Customer retention rates

Use this data to refine your approach and ensure you're offering the most attractive rewards to your guests.

Promoting a referral program

Promoting a referral program is important for driving participation and encouraging word-of-mouth marketing. Utilize various marketing channels to reach your existing customers. Share the program on social media, send targeted email marketing campaigns, and use in-app notifications if you have a restaurant app.

Offer incentives for customers to share the program with their friends and family, such as exclusive discounts or free items. Partner with influencers or brand ambassadors to promote the program to a wider audience. Finally, make sure to prominently display the referral program on your website and in-store marketing materials, such as table tents, menus, and receipts.

Measuring success

Measuring the success of a referral program is essential for optimizing its performance and driving business growth. Track key metrics such as the number of referrals, conversion rates, and revenue generated from referred customers. Use data analytics tools to monitor program performance and identify areas for improvement.

Adjust the program’s structure and incentives as needed to optimize its effectiveness. Regularly communicate program results to participants and stakeholders to maintain engagement and motivation. By keeping a close eye on these metrics, you can ensure your referral program continues to bring in new customers and more revenue.

Program optimization

Optimizing a referral program is an ongoing process that requires continuous monitoring and improvement. Analyze program data to identify trends and patterns and adjust the program’s structure and incentives accordingly. Consider offering personalized incentives or rewards to high-value customers or loyal program participants.

Utilize A/B testing to experiment with different program variations and identify the most effective approaches. Finally, regularly solicit feedback from program participants to identify areas for improvement and optimize the program for maximum impact.

By staying proactive and responsive, you can ensure your referral program remains a powerful tool for customer acquisition and retention.

Conclusion

A well-executed referral program not only helps you attract new guests but also encourages customer loyalty. By rewarding your diners for referring friends and family, you create a cycle of positive reinforcement that boosts both your brand and bottom line.

Eat App's CRM and referral program are powerful tools to help you automate and optimize your referral marketing efforts. Book a demo today and start rewarding your loyal customers with personalized offers that drive repeat business.

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