Selling restaurant gift cards is a proven way to increase revenue, attract new customers, and improve cash flow. Here’s why they work:
- 80% of gift card users spend beyond the card’s value, averaging an extra $59.
- 44% of recipients visit a restaurant for the first time because of a gift card, and many return multiple times.
- 20% of gift cards go unused, turning into pure profit.
To maximize your gift card sales, focus on these 10 strategies:
- Use modern systems to simplify gift card management and track performance.
- Place gift cards near checkout to encourage impulse buys.
- Promote gift cards on social media with targeted posts and ads.
- Offer bonus value deals (e.g., buy $100, get $20 free).
- Create seasonal promotions for holidays and special occasions.
- Bundle gift cards with menu items or branded merchandise.
- Sell in bulk to local businesses or corporate clients.
- Make buying easy online and in-store with clear options.
- Partner with nearby businesses for cross-promotions.
- Run contests or giveaways to generate buzz and attract new customers.
These tactics not only boost sales but also encourage repeat visits and higher spending. With the right approach, gift cards can become a reliable revenue driver for your restaurant.
Restaurants: How To Turn Gift Cards Into Cash!
1. Use Advanced Gift Card Management Systems
Modern technology can significantly boost your gift card sales while simplifying operations. Many payment processing platforms now come with built-in gift card programs that handle everything from creating the cards to redeeming them. These systems are designed to seamlessly integrate with your restaurant’s existing tools, like your POS, CRM, and e-commerce platforms, making it easy to sell, scan, and redeem gift cards – whether at the front desk or through mobile devices.
Look for systems that offer features like customization, bulk card generation, multi-channel distribution, real-time tracking, fraud prevention, and mobile wallet compatibility. These tools not only speed up transactions but also give you valuable insights into how your customers use gift cards and interact with your business.
Security is another critical factor. Choose platforms with strong encryption, fraud detection mechanisms, and regular security audits. This ensures customer data stays safe and builds trust in your program.
Automation can take your gift card strategy to the next level. For instance, you can send personalized digital gift cards to customers on their birthdays. This small gesture not only strengthens loyalty but also encourages repeat visits.
A great example is MerchantWorld, whose gift and loyalty programs integrate directly with their payment processing solutions. This setup allows restaurants to manage gift cards alongside regular transactions, eliminating the hassle of juggling multiple systems. Plus, it provides a centralized view of all payment activities, making it easier to monitor performance and identify areas for growth.
Don’t forget to evaluate systems with robust reporting and tracking capabilities. These features help you assess program performance and understand customer preferences. Did you know that 44% of consumers try new restaurants because of gift cards? With the right management system, you can turn those first-time visits into long-term customer relationships.
2. Display Gift Cards at Checkout
The checkout area is prime real estate for boosting gift card sales. Why? Because nearly 80% of consumers make impulse buys, spending over $300 a month on such purchases. By placing gift cards at eye level near your register or payment terminal, you can catch customers’ attention right when they’re ready to pay. Plus, 65% of buyers purchase gift cards directly from the retailer where they’ll be redeemed. To make the most of this opportunity, invest in eye-catching displays.
Create a visually appealing setup by using well-lit, custom racks or display boxes. Velvet-tiered stands or lighted displays work well, and switching up designs seasonally keeps things fresh. But keep it simple – offering five to ten top-performing designs helps avoid overwhelming customers. Position your highest-value cards closest to the register for easy access.
Your staff also plays a key role. Train them to casually mention gift cards during checkout with prompts like, "Don’t forget to grab a gift card!" These friendly reminders can make a big difference, especially when your team understands the details of your gift card program.
Here’s another reason to spotlight gift cards: 61% of consumers spend more than the card’s value. Offer a range of denominations – $25, $50, $100 – to fit different budgets. Thoughtful placement and staff engagement can turn your checkout area into a powerful tool for increasing gift card sales.
3. Use Social Media to Promote Gift Cards
Social media offers an incredible way to drive gift card sales. With over half the global population actively using these platforms, they provide direct access to a massive audience. For example, nearly half of consumers – 49% – discover local restaurants through social media, and 48% follow restaurant or food brand accounts.
Different platforms cater to different audiences. Facebook connects with older demographics, TikTok captivates younger users, and Instagram thrives on visual storytelling. To make the most of these platforms, showcase your gift cards prominently. Update your Facebook call-to-action button to link directly to your gift card sales page, and add a gift card feature to your Instagram profile. These small tweaks can effectively increase conversions.
Video content is another must. More than 60% of businesses use Instagram Reels to promote their products and services, and brands see an impressive 75% completion rate for their Instagram Stories. Take inspiration from District Eatz, whose winter-themed TikTok video went viral in 2020, leading to a surge in reservations.
Consistency matters. Post several times a week, mixing in gift card promotions, behind-the-scenes clips, and irresistible food photos. Studies show that frequent Instagram Stories result in higher reach and impressions.
User-generated content (UGC) is also a game-changer. Condado Tacos has built a successful strategy around sharing guest photos and videos. They explained:
"Our guests already take amazing pics of our food and post about Condado to their friends, so sharing UGC is a big player in our strategy. When people see our posts, we want them to crave the food enough to share with friends, talk about how delicious it looks, and then make plans to come dine with us or get takeout."
To further boost sales, consider running paid ads on Facebook or Instagram during peak seasons. Engage with your local community by sharing promotions in neighborhood Facebook groups. It’s worth noting that 30% of millennial diners avoid restaurants with weak Instagram profiles. A vibrant, engaging social media presence can make all the difference.
4. Offer Bonus Value Deals
Adding bonus value deals to your strategy can not only drive immediate sales but also set the stage for future revenue growth.
One effective method is offering bonus cards to encourage larger purchases. For example, you could run a promotion like, "Buy a $100 gift card, get a $20 bonus card", or use scaled bonuses such as $10 for a $50 card, $20 for a $100 card, and $30 for a $150 card. These types of offers give customers an extra incentive to spend more upfront.
Take Duffy’s Sports Grill as an example – they’ve perfected this tactic with flash sales held three times a year, where they offer bonus dollars for every gift card purchase. And here’s why this works: data shows that 65% of gift card recipients spend 38% more than the card’s face value when they redeem it. This means your bonus deals don’t just generate immediate revenue; they also encourage customers to spend beyond the card’s value later.
Timing your promotions strategically can amplify their impact. The gift card market is massive, pulling in $324.5 billion annually, and 85% of gift cards are redeemed within 60 days of being received. This makes holidays a prime opportunity for bonus value campaigns, as they can boost cash flow during the season and drive traffic into the new year.
To find the right bonus amounts, analyze your sales data and experiment with modest increases, like 10–20%, using your POS system. Adjusting your approach throughout the year can also help. For instance, summer promotions could focus on family dining, while holiday campaigns might highlight gift-giving. These offers not only encourage higher spending but also create opportunities to connect with customers in meaningful ways.
Using tools like MerchantWorld’s gift and loyalty programs can simplify managing these campaigns. They make it easy to track performance, manage multiple gift card tiers, and ensure your promotions are running smoothly.
5. Create Holiday and Seasonal Promotions
Holiday promotions are a fantastic way to boost gift card sales, especially since many people turn to gift cards as convenient presents during the festive season. Restaurant gift cards, in particular, see a surge in popularity during the fall and winter months. Tapping into these trends can help you capture more holiday spending.
Here’s a key insight: In 2020, consumers spent an average of $335 per person between Black Friday and Cyber Monday. This highlights the potential for well-timed promotions to drive significant sales during the holiday season.
Certain times of the year are especially strong for restaurant gift card sales. Think Mother’s Day, Father’s Day, graduation season, and, of course, the stretch from Thanksgiving to New Year’s. Michelle Korsmo, President & CEO of the National Restaurant Association, summed it up perfectly:
"Restaurant gift cards are a thoughtful way to make holiday gift giving meaningful and easier, especially when you have a long list of friends and family to purchase gifts for."
Big-name chains like The Cheesecake Factory and Benihana have mastered this strategy by offering bonus incentives with gift card purchases. You can follow their lead by creating similar promotions that add extra value for your customers.
To make the most of seasonal demand, create a sense of urgency. Limited-time offers are powerful tools – nearly 60% of consumers make purchases within 24 hours when faced with FOMO (fear of missing out). Keep these promotions short and sweet, ideally lasting 24 to 72 hours, and use attention-grabbing elements like countdown timers, which can boost conversion rates by up to 8.6%.
Start your holiday campaigns early and promote them across digital and in-store channels. Black Friday and Cyber Monday are prime opportunities to offer discounts or bonus deals on gift cards. Consider designing holiday-themed gift cards with festive designs to make them even more appealing. You can also tie your gift card sales to charitable initiatives – this not only strengthens community connections but also encourages more purchases.
Finally, take advantage of tools like MerchantWorld’s gift and loyalty programs to track and refine your seasonal campaigns for maximum impact.
6. Bundle Gift Cards with Popular Menu Items
Pairing gift cards with your restaurant’s signature dishes or best-selling menu items transforms a simple purchase into a memorable experience. This approach not only enhances the perceived value of the gift card but also aligns perfectly with your overall sales strategy.
The secret to making this work lies in clear bundled pricing. Customers should immediately see the value they’re getting. For example, you could package a $50 gift card with a bottle of your signature hot sauce or a limited-edition holiday t-shirt at a special price. To sweeten the deal, consider adding a bonus card – like a $10 gift card for every $50 purchase. These small incentives can make a big difference in driving sales.
Timing is everything. Offer these bundles during major shopping events like Black Friday or Cyber Monday to grab attention and encourage impulse buys. Limited-time deals create urgency, making customers more likely to act quickly.
When designing your bundles, it’s crucial to strike a balance between creating a great guest experience and protecting your profit margins. Think about the recipient’s preferences and the occasion. Pairing gift cards with thoughtful extras like brownies, branded mugs, or even cozy socks can make the bundle feel more personal and exciting.
To keep refining your offerings, use tools like MerchantWorld’s gift and loyalty programs. These can help you track how well your bundles perform and adjust based on what your customers love most. By adding creative touches and monitoring results, your bundles can stand out and create a lasting impression.
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7. Sell to Local Businesses and Corporate Clients
Targeting the corporate market can significantly boost your gift card sales. Many companies now opt for branded gift cards as thoughtful gifts for employees or clients, making this a perfect opportunity to expand your reach. This strategy blends well with the in-store and digital sales approaches we’ve covered earlier.
Start by identifying local businesses that prioritize employee appreciation and client engagement. Reach out to them directly, highlighting how your restaurant’s gift cards can meet their gifting needs while also supporting a local establishment. It’s a win-win for both sides.
To encourage bulk purchases, consider offering tiered volume discounts. This way, businesses save more as they buy more, while you maintain a healthy profit margin.
Streamline the ordering process by providing a straightforward order form. Include fields for company details, billing and delivery information, and any custom messaging they’d like to include. Pair this with a dedicated contact line to offer a more personalized experience. Efficiency is key – just like with other promotions, simplifying the process ensures a smoother transaction for corporate clients.
"We know that busy professionals like you need optimized solutions to purchase gift cards in bulk quickly and easily." – The eGifter Rewards Team
Using tools like MerchantWorld’s gift and loyalty programs can make managing these orders a breeze. These systems can track bulk purchases, automatically apply discounts, and generate detailed invoices, which are essential for corporate accounting.
Spread the word about your corporate gift card offerings through your website, social media, and direct outreach. Adding a dedicated "Corporate Sales" section to your site – with clear pricing, ordering instructions, and contact details – makes it easy for businesses to discover and take advantage of your corporate gift card program.
8. Make Online and In-Store Buying Simple
Making it easy for customers to buy gift cards – whether online or in-store – is a key way to boost sales. People today expect convenience, whether they’re shopping on their phone or grabbing a card while paying in person.
For your online gift card system, integration is essential. Look for a gift card platform that works directly with your existing point-of-sale (POS) system to ensure smooth transactions. You can also customize digital gift cards with your brand’s logo and colors, and set up automated email or text delivery for instant access once purchased. This kind of setup creates a seamless connection between your digital and in-store experiences.
In-store, physical gift cards should be easy to spot. Placing them at checkout counters is a smart move since that’s where customers naturally look while waiting to pay. Offering both physical and digital gift cards gives customers the flexibility to choose what works best for them. Make sure physical cards can be redeemed online and digital cards can be used in-store – this ensures you’re accommodating all preferences.
Simplify the checkout process by only asking for essential information during gift card purchases. Long forms can be a turn-off, so keep it quick and easy. Offering mobile wallet options for digital gift cards is another way to make things more convenient.
To take your strategy up a notch, consider advanced gift card management systems like MerchantWorld’s gift and loyalty programs. These platforms handle both online and in-store transactions, provide detailed analytics to track performance, and include strong security features, such as data encryption and multi-factor authentication, to protect customer information.
Finally, make sure your gift cards are easy to find. Feature them prominently on your website and social media pages. The more visible and accessible your gift cards are, the more likely customers are to purchase them. By keeping these elements connected, you can drive consistent sales across all your channels.
9. Partner with Nearby Businesses
Teaming up with local businesses can do wonders for your gift card sales. By tapping into their customer base, you not only boost your visibility but also introduce your restaurant to a fresh audience.
The trick? Pick the right partners – businesses that complement your restaurant without directly competing with it. For example, a fine dining spot could team up with a wine shop or boutique, while a family-friendly restaurant might collaborate with a nearby movie theater or entertainment venue. These partnerships work best when both businesses share a similar target audience, creating opportunities for mutual growth.
"Cross-promoting your gift cards can drive sales and create meaningful partnerships with other local businesses." – Card Market
Once you’ve found the right partners, think about creative ways to cross-promote. Bundled experiences are a fantastic option. For instance, you could work with a local cinema to offer a "dinner and a movie" package, where customers can buy gift cards for both businesses together. Hotels are another great choice – imagine a "dinner and overnight stay" package that appeals to couples or out-of-town visitors looking for a special night out.
Another smart strategy is reciprocal displays. You could showcase a partner’s gift cards in your restaurant while they promote yours in their store. This creates ongoing visibility for both businesses. You might also consider offering small discounts to customers who present a gift card from a partnered business when dining at your restaurant. This not only encourages customers to visit both places but also strengthens the partnership.
The key is to align with businesses that reflect your brand values. Make sure to establish clear agreements and share marketing materials that benefit both parties.
Once your partnerships are in place, it’s important to measure their success. Use tools like customer surveys, tracking codes, or point-of-sale data to see which collaborations are driving the most gift card sales.
"Other local businesses or influencers can help you reach a wider audience and attract new customers to your restaurant." – Simplot Foods
10. Run Gift Card Contests and Giveaways
Hosting contests and giveaways is a fantastic way to introduce your gift cards to new customers. These promotions tend to thrive on social media, drawing in fresh audiences and generating buzz.
Before you kick things off, make sure your contest complies with all legal requirements. This protects your business and ensures everything is fair. For example, your official rules must state that "No Purchase Necessary to enter and/or win" and clarify that "a purchase will not increase your chances of winning." If making a purchase is one way to enter, you’ll need to provide an alternate entry method. Additionally, be clear about entry eligibility, contest duration, how winners will be selected, and the prize details, including their approximate retail value. To avoid running an illegal lottery, ensure your contest doesn’t combine chance, consideration, and a prize without proper safeguards.
"Marketing promotions like sweepstakes and contests are great tools for generating new leads, boosting sales, and increasing customer engagement, but they must be done correctly." – Brandmovers.com
Social media is a particularly effective platform for promoting gift card contests. You can ask participants to share photos of their favorite dish, tag friends in comments, or create user-generated content featuring your restaurant. These activities naturally expand your reach as participants’ friends and followers notice and engage with the contest.
In-store contests can also be a hit, especially during slower times when you want to boost foot traffic. For example, you could organize trivia games, have customers guess the number of items in a jar, or hold drawings during special events. These activities not only encourage visits but also foster a sense of community.
"Adhering to promotional laws and regulations will uphold consumer trust and ensure you avoid potential legal pitfalls, safeguarding the promotion’s integrity and your brand’s reputation." – Brandmovers.com
Timing is everything when it comes to contests. Plan them around major holidays when people are shopping for gifts, or during slower periods when your sales could use a boost. Make sure to announce winners promptly and deliver prizes on time – this builds trust and encourages future participation.
When done right, contests and giveaways can be a powerful addition to your gift card sales strategy. Whether online or in-store, these promotions not only increase visibility but also integrate seamlessly with your broader marketing efforts.
Gift Card Promotion Strategy Comparison
Building on earlier strategies, this section compares different approaches to help you decide when and how to implement each tactic for boosting gift card sales. Align your promotions with your restaurant’s goals and timing to maximize their impact.
Bonus value deals are all about giving customers extra value right away – making them feel like they’re getting more bang for their buck. These deals work especially well during slower periods. Examples include offering a $10 bonus for a $50 gift card purchase, a $5 bonus for spending $25, or an $8 bonus for orders over $30.
Seasonal promotions tap into natural gift-giving patterns, thriving during peak shopping times like Christmas, Mother’s Day, and Father’s Day. While most gift card sales happen between November and January, nearly half (48%) occur outside of December. This means there’s potential to promote gift cards throughout the year, not just during the holidays.
Here’s a quick comparison of three key strategies:
| Strategy | Best Timing | Primary Benefit | Ideal For |
|---|---|---|---|
| Bonus Value Deals | Year-round, especially during slower periods | Offers immediate added value to encourage purchases | Boosting sales during off-peak times |
| Seasonal Promotions | Holidays (e.g., Christmas, Mother’s Day) | Leverages heightened shopping activity | Maximizing sales during gift-giving seasons |
| Corporate Sales Programs | Year-round | Drives bulk purchases with custom incentives | Targeting local businesses and corporate clients |
Corporate sales programs are designed for businesses looking to buy in bulk for employee rewards or client gifts. These programs often include options for custom branding, making them attractive to corporate clients while boosting revenue through large orders.
The effectiveness of each strategy depends on your restaurant’s size and customer base. Smaller restaurants may see quicker results with bonus value deals, while larger establishments might benefit from more elaborate seasonal campaigns.
It’s also worth noting that gift cards often lead to additional revenue. A significant portion of recipients spend more than the card’s value – on average, 72% of customers overspend by 20%. This means any strategy you use has the potential to generate extra income beyond the initial sale.
Many successful restaurants combine these strategies for maximum impact. For instance, Velvet Taco launched its e-gift card program during the holiday season in December 2022. The result? A whopping 358% increase in December gift card sales compared to their monthly average. Timing, as this example shows, can make all the difference.
MerchantWorld’s integrated platform makes managing these strategies easier. From tracking bonus offers to running seasonal campaigns and handling corporate bulk orders, their gift and loyalty programs streamline the entire process.
Conclusion
Using these 10 strategies can turn your restaurant’s gift card program into a reliable way to boost revenue. With the U.S. gift card market expected to hit $787.07 billion by 2031, and research showing most gift card holders spend more than the card’s value, this approach offers both immediate cash flow and the chance to bring in new customers eager to try your restaurant through gift cards.
In fact, over 72% of gift card holders spend beyond the card’s value, making each sale an opportunity to generate extra revenue. This means gift cards do more than just bring in upfront cash – they also encourage higher spending during redemption.
The real key to success is consistent execution paired with smart technology. Managing various promotional tactics – like bonus value offers, seasonal campaigns, and corporate sales – requires a platform that simplifies the process. MerchantWorld’s gift and loyalty programs provide the tools to track performance, manage inventory, and streamline operations across all channels.
This approach has already proven its worth for many businesses. For example, Steve Mitchael, owner of 72 West, shares his experience:
"As our [Clover business consultant] always says, ‘It’s free money.’ And we see undeniable benefits in every gift card sale, making it essential to incorporate them into your revenue strategy".
With these insights and real-world examples in mind, now is the time to take action. Whether it’s at checkout, through social media, or local partnerships, aligning your efforts with these strategies can grow your revenue, strengthen customer loyalty, and enhance your brand’s visibility. Plus, with 35% of customers redeeming restaurant gift cards within a week, you may start seeing results sooner than expected.
FAQs
What can I do to make sure customers actually use the gift cards they purchase?
To get customers to redeem their gift cards, try setting expiration dates with straightforward terms to encourage timely use. You could also offer special incentives, like bonus rewards or discounts, for redeeming cards within a specific period.
Another effective approach is running targeted marketing campaigns. For instance, send reminders or personalized offers to keep your restaurant on their radar and inspire them to visit sooner. These efforts not only boost redemption rates but also help strengthen customer connections.
How can restaurants collaborate with local businesses to boost gift card sales?
Partnering with local businesses can be a clever way for restaurants to boost gift card sales. Think about joining forces with nearby spots like spas, gyms, or movie theaters to create bundled offers. For instance, you could pair a dinner gift card with a discounted spa session or a movie ticket. These combos make for attractive gift options that customers are likely to love.
You can also team up for community events or charitable projects. Whether it’s a local fundraiser or a festival, co-branded promotions can highlight your restaurant while contributing to a meaningful cause. Another idea? Cross-promote by showcasing each other’s gift cards or flyers at your locations. These collaborations not only help you reach more people but also make your gift cards stand out to a broader audience.
What are the best ways to use social media to promote and sell my restaurant’s gift cards?
To successfully market and sell your restaurant’s gift cards on social media, focus on creating visually appealing content. Use high-quality photos or videos to present your gift cards as the perfect option for thoughtful, hassle-free gifting. Tie your promotions to holidays, special events, or limited-time deals to spark interest and urgency.
Make sure your gift cards take center stage on your social media pages. Post regularly with creative captions, and don’t shy away from investing in paid ads to reach a broader audience. Get your followers involved with fun activities like giveaways or contests, and encourage them to share stories or photos of their gift card experiences. Offering both digital and physical gift card options ensures you can meet a range of customer preferences, which can lead to increased sales.