As loyalty and payment technologies become standard across the industry, the real competition has shifted. The question is no longer whether restaurants offer these tools, but whether they use them to create experiences that feel effortless, valuable, and human.
Gen Z consumers in particular are looking for high-value rewards with quick gratification, leading brands to introduce micro-rewards and challenges as part of their marketing strategy. When evaluating original bankable rewards programs that require multiple visits before the first redemption opportunity, brands like Cafe Gratitude, Gracias Madre, and Old Chicago Pizza & Taproom are creating engaging points of interest with low redemption thresholds.
With three locations in the Los Angeles area, Cafe Gratitude’s and Gracias Madre’s original loyalty program was a dollars-to-points system that encouraged guests to save 300 points and exchange them for $10. “It took a lot longer to get there and more spend and so we noticed that we weren’t getting a lot of signups during a period of time like we initially were,” says Patrick Hotchkiss, chief operating officer of the plant-based restaurant concepts. “What can we do to enhance this into something that people want to sign up for? And how do we make it easier for them?”
The brand lowered its reward threshold from 300 points to 200 points, offering a $5 reward instead of $10. Along with this change, the brand recognized that the sign-up process was too long. They streamlined this experience by eliminating the address field and only requiring first name, last name, phone number, and optional birthday information to be eligible for the brand’s $10 birthday reward.
With this change in place, the team has received positive feedback from its guests and team members. “Most people like it because it’s so easy at the cashier station or even at the table-side service, we have a QR code that they scan,” says Hotchkiss. To make the program even more alluring during the pitching process, the brand has instituted a $10 sign-up reward, providing guests with an instant gift.
Revamping loyalty programs has been a common exercise for brands lately. Old Chicago Pizza & Taproom is no exception. With a dollars-to-points-based system as well, where every $1 equals one point and 75 points get you $5 OC Bucks, the brand felt a need to improve participation so guests could get their $5 quicker. In January of this year, for the first time ever, the brand introduced its “Make it or Break It” campaign, which rewarded guests differently based on their order choices.
“You’re either going to make it or break it,” says Dana Aydlett, brand marketing manager of Old Chicago, which operates over 52 restaurants throughout 21 states. “Either way, we’re going to reward you. I know a lot of restaurants out there might focus on January only, where we’re doing promotions on salads and healthy stuff, but we thought, we’re not perfect. We’re humans. We might be perfect six days a week, but seven days a week, we may want that slice of pizza and a Coke. And we wanted to reward our customers for making whatever decision they wanted.”
Old Chicago has long incorporated challenges, known as mini tours, centered on seasonal themes, cultural moments, and brand anniversaries. Running for seven to eight weeks, these activations encourage guests to try new menu items, cocktails, or beers. Extra points are then rewarded to engaged participants. Often, the reward guests are working toward is either a T-shirt, a long-sleeve T-shirt, or a sweatshirt. “We have a very dedicated following of people that really look forward to collecting these T-shirts and look forward to coming in and trying the new menu items,” says Aydlett. “It’s just a fun way to engage with our customers.”
To continue fostering engagement after these challenges or mini tours are completed, the brand also looks at guest behavior. Based on purchase behavior and frequency, Old Chicago divides guests into segments, and from there, the brand then develops personalized messaging. This avoids overwhelming the guest with marketing communications and speaks directly to an action they have already taken based on previous habits and interests.
To further improve the guest experience, Cafe Gratitude and Gracias Madre looked for ways to streamline the check process. At the time, the brand wasn’t necessarily searching for a solution, but when sunday reached out, the team was intrigued. Sunday is a built-by-restaurateurs payment platform that is used by over 50 brands across 3,000 restaurants nationwide. “[Sunday] was really in line with our ethos of a sustainable practice and reducing our carbon footprint and the printer paper,” says Hotchkiss.
With sunday’s innovative approach to payments, the checkout process no longer feels like an interruption, but is an opportunity for guest connection. Guests can leave a review, join a brand’s loyalty program, or be recognized as a returning customer. If a guest starts to leave a poor review, the team can respond in real time. “If there is an issue and a customer is leaving a review that is an area of improvement, then our managers can touch the table and find out,” says Hotchkiss. “We can potentially recover this customer from leaving a bad review or not coming back because we built the relationship.”
Sunday also gives guests the power to decide when to pay after their meals. “Faster checkout doesn’t mean rushing guests, but giving them more control over when they leave,” says Christine de Wendel, co-founder and CEO of sunday. “For operators, it translates to better table flow, reduced congestion, and more predictable service pacing without compromising hospitality.” On average, restaurants that have incorporated sunday into their operations have seen savings of 12 minutes per table compared to other forms of payment, according to de Wendel.
As restaurants look to improve their tech stacks, the biggest thing to keep in mind is selecting solutions that don’t require team members or guests to undergo a large learning curve. Whether it’s engaging with loyalty, completing payment, reading reviews, or investigating operational performance, the tools used should feel natural, human, and almost second nature to the user. By applying new technologies and continuously studying guest behavior, restaurants can build real relationships while simplifying common pain points for both guests and operators. “Now everything is in real-time,” says Hotchkiss. “You can really use trends and real-time information to better run your business.”
