Restaurant Gift Card Programs: How to Drive Revenue Year-Round

Gift cards are more than just holiday presents—they're a powerful revenue driver for restaurants. A well-run gift card program brings in cash upfront, attracts new customers, and encourages additional spending. Here's how to make the most of gift cards.

The Business Case for Gift Cards

• Immediate Cash Flow: Receive payment before providing service
• Breakage Revenue: 10-15% of gift cards go unredeemed
• Overspend: Customers spend 20-60% more than card value
• New Customer Acquisition: Recipients may be first-time visitors
• Brand Awareness: Physical cards are mini-advertisements

Types of Gift Card Programs

Physical Gift Cards

• Traditional plastic cards
• Custom design with branding
• Sold in-store and at retail locations
• Tangible gift experience

Digital Gift Cards (eGifts)

• Purchased and delivered online
• Instant delivery via email or text
• Mobile wallet integration
• Popular for last-minute gifts

Promotional Cards

• Bonus cards with purchase (buy $50, get $10 free)
• Incentive cards from promotions
• Loyalty reward cards

Setting Up Your Program

Card Design

• Reflect your brand identity
• High-quality look and feel
• Consider seasonal designs
• Include website/phone number

Denominations

• Offer pre-set amounts ($25, $50, $100)
• Allow custom amounts
• Price points matching average check size
• Higher values for special occasions

Terms and Conditions

• No expiration (required in many states)
• Lost card policy
• Not redeemable for cash
• Clear redemption instructions

Selling Gift Cards Effectively

In-Store Sales

• Display cards prominently at host stand and register
• Train staff to suggest gift cards
• Offer gift card holders or envelopes
• Process quickly through POS

Online Sales

• Prominent website placement
• Easy purchase process
• Immediate eGift delivery option
• Physical card shipping

Third-Party Retail

• Grocery store gift card displays
• Amazon and other online retailers
• Corporate gift card aggregators

Promotions That Drive Sales

Bonus Card Promotions

"Buy $100, get $20 bonus card"

• Drives higher purchase amounts
• Bonus cards bring customers back
• Best during holiday season
• Set expiration on bonus (not main) card

Limited-Time Offers

• Black Friday/Cyber Monday specials
• Mother's Day promotions
• Valentine's Day packages
• Back-to-school promotions

Corporate Programs

• Bulk discounts for businesses
• Employee reward programs
• Client appreciation gifts
• Custom card options

Marketing Your Gift Cards

Key Selling Seasons

• November-December: Holiday gifting (40-50% of annual sales)
• May: Mother's Day
• June: Father's Day and graduation
• February: Valentine's Day
• Year-round: Birthdays and thank-yous

Marketing Channels

• Email campaigns to existing customers
• Social media promotion
• In-store signage and table tents
• Website banners
• Receipt messaging

Redemption Best Practices

• Easy balance checking (online, phone, in-store)
• Apply partial payments seamlessly
• Train staff on gift card POS functions
• Handle issues graciously
• Encourage full redemption (suggest adding items)

Tracking and Reporting

Monitor these metrics:

• Sales Volume: Cards sold by period and channel
• Redemption Rate: Percentage redeemed
• Breakage: Unredeemed value
• Average Purchase: Card value sold
• Overspend: Average amount spent beyond card value

Gift Cards with KwickPOS

A modern POS system simplifies gift card management for your restaurant. KwickPOS provides gift card capabilities to help you boost revenue and attract new customers.

Ready to boost revenue with gift cards? Contact KwickPOS to learn more about our solutions.