Gift cards are a cost-effective method for everyone. Customers can easily purchase them as last-minute gifts for loved ones, foodie friends, star employees and even acquaintances. Regardless, gift cards can provide a great experience at a lower price-point than many other gifts. People love receiving and using them, too.
Selling gift cards can also be a very lucrative way for restaurants to boost profits and exposure.
Say it's holiday shopping season, and Jerry is buying gifts for each member of his old intramural basketball team. He purchased a new holiday sweater for Mickey, a set of steak knives for Keith and a new harmonica for Ron. But what about his foodie friend Brent? Brent’s biggest hobby is trying new restaurants and posting pictures of dishes on Instagram.
Jerry goes to his favorite steakhouse and purchases a $50 gift card—the perfect gift for his friend. Brent gets to visit a new restaurant that he may not have previously considered, then potentially becomes a regular.
One of the most common barriers to getting customers to visit a restaurant is recall. It’s difficult for brands and businesses to stay on customers’ minds. Gift cards can help by putting your brand’s name in front of consumers and incentivizing them to try your restaurant. A majority of diners only eat at restaurants 2-3 times a week, so the stakes of a meal out are quite high!
Gift cards lower these barriers by alleviating some of the monetary strain on customers. Plus, they immediately boost new guests’ likelihood to go to that restaurant. And once someone goes, they’re a lot more likely to visit again.