Top 4 Customer Retention Strategies for Restaurants

Sometimes you want to go where everybody knows your name. The coffee shop where the baristas seem happy to serve you. The bar where you always feel welcome after a long day’s work. Or the restaurant that always delivers on time and throws in some extras.

The ideal customer for your business is the one who comes back time and time again. When it comes to getting people in the door, it’s always easier to get someone back than to find brand-new customers.

Retaining an existing customer is five times cheaper than acquiring a fresh face. Loyal customers are also much spendier—averaging checks about 67% higher than a first-timer. A loyal customer base is key to growing your business and keeping it profitable year-over-year. But how do you get people back in the door? The most important thing is a solid customer retention strategy.

#1: Collect customer information (and use it!)

One of the most important steps in improving your customer retention rate (CRR) is collecting guest information. Once you have access to customer contact info, you can reach them via email or text and let them know about special offers, new menu items, changing hours, and more.

A personalized approach makes 80% of customers more likely to dine at your restaurant and return. The simplest way to collect customer data in a quick-serve or fast-casual restaurant is to have customers supply it on a sheet of paper at the register.

Once every few days, add that info to a spreadsheet of customer relationship management software like Constant Contact or HubSpot. Many restaurant website builders also allow you to put a sign-up form on your website. The basic information you should collect is your customers’ first and last names, phone numbers, and email addresses.

It may sound a little easier than it is, as people aren’t always willing to give you their information. To make sure you are successful, give them a good reason to. Let them know what to expect and entice them with exclusive deals or early access. This applies to in-person asking as well as online forms. You have to earn it!

For full-service restaurants, many POS or reservation systems can also help collect data for you. Restaurant software like SevenRooms and ResyOS have deep capabilities that can even save diner preferences, like their favorite table, drinks, and more. The most important thing, however, is that you can get in touch with your customers when they’re not sitting down.

#2: Use restaurant industry technology to improve customer experiences

The right restaurant tools can help you understand your customers better and meet their needs efficiently. People with great dining experiences are more likely to return, allowing you to convert as much as 95% into repeat customers.

Customer relationship management (CRM) systems can help you keep track of your guests’ information, like their favorite dishes and visit history. You can then send a special discount on their birthday, making them feel valued and boost retention.

You can also consider a mobile app, which makes it easy for customers to place orders and reservations on their phones. 71% of consumers prefer websites and mobile apps created by restaurants themselves over third-party solutions like DoorDash, UberEats, and GrubHub.

When choosing restaurant tools, consider your menu, size, and customer preferences. Start with one or two apps that can have the most immediate impact.

For instance, 7shifts can help improve customer experiences by making sure you have the right number of people on duty. Proper staffing leads to smooth service and reduced wait times for your customers.

#3: Reward customer loyalty

Customer loyalty programs have been around for a while, but they’ve seen tremendous growth over the past few years, thanks to the restaurant industry’s digital evolution. Loyal consumers are 64% more likely to purchase more frequently than their “non-loyal” counterparts.

Nearly half of loyal customers (47%) will show loyalty by recommending your business to their family and friends. Meanwhile, 73% will adjust their spending to get more benefits from a loyalty program.

As such, a restaurant loyalty program is a surefire way to entice your guests to return, not churn. The great thing about implementing a customer loyalty program is that it is only as complex as you make it.

One tried-and-true way to get customers back is a simple punch card. This can be for hot beverages like coffee, pastries, or other small items.

Don’t be afraid to get creative, either; King David’s Tacos in New York City has punch cards for breakfast tacos—buy 10, get one free. They’re cost-effective, too. With some simply designed business cards and a hole punch, you’ll be on your way to higher customer retention.

Digital loyalty systems are also an increasingly popular option. Usually integrated via your POS, digital programs give you a lot of flexibility regarding how customers can receive rewards.

They can be based on a spending threshold (spend $50, get $5) or an item threshold (buy 5, get 1). Digital programs are also helpful for automating things like customer birthdays—who doesn’t want a free treat on their day?

As for setting it up, many POS systems have loyalty programs that integrate right in and can track customers spending via email, phone number, or even the card they use to pay.

#4: Optimize your menu based on customer feedback

Your restaurant’s menu is one of the most important parts of your restaurant. It shows what you offer and what makes your restaurant special. But there’s always room for improvement, and that’s where customer feedback comes in.

While 70% of restaurant owners believe that menu optimization will help them achieve their business goals, only 27% actually conduct careful analyses for effective changes. That’s why you must actively listen to what your diners say about your dishes to make adjustments that can make them love your food even more.

Encourage your customers to share their thoughts. You can ask them in person, hand out comment cards, or send follow-up emails after their visit. For example, after a customer finishes their meal, ask them what they liked and what could be better.

You can also send out surveys via email or through your mobile app. Keep them short and focused on your menu. Ask specific questions like, “Which dish did you enjoy the most?” or “Is there a dish you’d like us to add?”

Look for common themes in the feedback. Are customers asking for more vegetarian options? Do they love a particular dish and want more like it? Identifying these patterns helps you make changes that will satisfy your guests and improve customer retention.

Introduce new menu items as your restaurant’s specials before making them permanent. This allows you to gather more customer feedback and see how well the new items perform. Add a new dish to your regular menu if it gets great reviews.

#5: Find ways to personalize interactions with customers

Personalizing interactions shows your customers that you care about their preferences and experiences. 92% of QSR diners expect some form of personalization from restaurants.

One simple way to personalize interactions is to address customers by their names. Train your staff to be more customer-friendly, like using guests’ names, whether first or last names, when greeting and serving them.

Another approach is to use their past order history to suggest similar or complementary menu items. 70% of customers admitted that getting recommendations based on past purchases makes them feel as if the restaurant knows them.

Meanwhile, 59% noted that seeing their name in an email or app has the same effect. To make your digital interactions even more compelling, send birthday offers or exclusive discounts on customer anniversaries to show that you remember their special days.

#6: Keep your restaurant social media accounts engaging

Social media is a great restaurant online marketing tool that boosts customer retention because of its visual nature. Platforms like Instagram and TikTok allow you to showcase your dishes, behind-the-scenes kitchen action, and restaurant atmosphere. These types of content can stop customers as they scroll their feeds and keep your restaurant at the top of their minds.

Post regularly to keep your social media accounts active. Share updates about new menu items or special events. Around 60% of customers go on Instagram to find new restaurants, so posting delicious food can help attract new diners.

You should also consider running contests and giveaways in your restaurant social media marketing campaign to boost engagement. Create fun challenges like “tag a friend who would love this dish” or offer a free appetizer to the winner of a photo contest featuring your restaurant.

85% of people trust this type of user-generated content more than brand photos or videos.

Encourage user-generated content by creating a unique hashtag for your restaurant. This increases visibility and also creates a sense of community among your customers. Don’t forget to share and repost customer photos to make them feel appreciated and recognized.

#7: Provide great food and even better service

“Business, like life, is all about how you make people feel. It’s that simple, and it’s that hard.”

In his bestseller Setting the Table (a restaurant management book everyone in hospitality should read), Danny Meyer offers some of the best advice on running a successful restaurant.

You can do everything we mentioned above, but if your service or food is not up to standards, customers will not come back. A study of restaurants by Deloitte found that customers value most in a restaurant is friendly and hospitable employees. The second most important? Feeling empowered to make choices and having feedback valued.

A great staff starts from the hiring process and continues on through proper restaurant staff training and performance evaluations. Your staff, too, needs to feel engaged and empowered to do their job well to succeed. Customer loyalty is formed with positive experiences. You can’t provide that to guests if your restaurant employee engagement is low. Make sure that both sides of the equation are balanced.

It applies to delivery, too.

The recent reliance on delivery doesn’t mean that service is not as important as dine-in. You can provide excellent delivery service as well. Is it someone’s third order in a week? A handwritten card or free cookie goes a long way in making them think of you when they open up their phones to order in again.

#8: Respond to online reviews promptly

Online reviews are important because they influence how potential customers see your restaurant. 94% of diners use online reviews to make decisions on where to eat.

When people see that you respond professionally and quickly to both positive and negative feedback, you’re showing a willingness to improve and maintain customer satisfaction. Businesses that acknowledge reviews are considered 1.7 times more trustworthy than those that don’t respond.

Keep an eye on online reviews, especially on Google, where 46% of users check restaurant ratings online. Have someone check in daily and respond to comments.

For positive reviews, thank the customer and express appreciation for their kind words. For negative reviews, apologize sincerely, acknowledge their specific concerns, and offer to make things right.

Use the customer’s name and mention specific details from their review. This makes your response feel genuine and personalized.

Additionally, note common themes in reviews and use these reasons to make improvements. For example, if multiple customers mention that a particular dish is too salty, consider adjusting the recipe.

#9: Make a way for customers to feel part of a community

Restaurants can be more than places to eat—they’re third spaces where people come together.

Host community events that bring people together, such as local musician nights, charity fundraisers, or themed dinner experiences. For instance, a local farm-to-table restaurant might host an annual harvest festival featuring local producers.

Transform your restaurant from a dining space into a gathering place. This will allow you to build deeper relationships with customers and create a sense of community that goes beyond simply serving food.

#10: Offer flexible reservation and ordering options

People have different preferences. Providing flexible reservation and ordering options lets you create a more enjoyable and convenient experience for everyone.

For instance, some customers prefer online reservations through your website or a third-party platform, while others may want to call directly. Consider offering multiple booking channels like:

• Mobile app reservations
• Phone bookings
• Walk-in availability
• Online table selection
• Group booking options

You can also offer flexibility in terms of time, like allowing them to book early bird or late-night dining options. This can lead to an increase in revenue by as much as 21% compared to using rigid reservation timing for diners.

68% of guests are also more likely to book a reservation for limited-time food specials. Take advantage of seasonal menus and unique dining experiences to attract more customers.

Simple strategies for effective restaurant customer retention

The customers who make or break your restaurant are the ones who come back time and time again. They’re the ones who post about you on social media and suggest your restaurant to their friends. These simple strategies for customer retention will help you keep your customers coming back.

Having the right number of people in your FOH and BOH consistently provides customers with top-quality food and services. 7shifts makes scheduling and team communication easier so that you can focus on delivering exceptional dining experiences and boosting your restaurant’s customer retention rate.