Starting a Restaurant Loyalty Program in Australia

Have you ever chosen a café because you were just one coffee away from a free one? Or visited a restaurant where you didn't need to reach for your wallet because your details were already saved in their app? That's a loyalty program at work, and it's one of the smartest ways to bring guests back through your doors, again and again.

Loyalty programs don't just reward guests. They drive predictable revenue. Whether you're running a single café or managing a group of venues, the right loyalty strategy can turn casual diners into regulars and regulars into advocates.

Why Loyalty Matters in Australia

Australians are passionate about eating out. According to the Toast Consumer Preferences Survey 2025, 64% of Australians dine out weekly or more, making loyalty a powerful tool to capture repeat visits. 

Value is front and centre for Australian diners. When deciding where to eat, 19.5% say price is their number one factor, while 36% call it “quite influential,” and another 37.5% say it’s “somewhat influential.” A good loyalty program lets you highlight value in smarter ways — giving guests a reason to come back without always reaching for discounts.

Our survey data also shows that 42% of Australian consumers are dining out at least three times per month, with younger generations making restaurants part of their weekly routines. This frequency creates the perfect opportunity for loyalty programs to work their magic. 

Pick the Right Structure for Your Concept

The right loyalty structure really comes down to your concept, your guests, and how you run things day to day. For many cafés, quick-service spots, and casual restaurants, a points-based program is the simplest place to start. Think one point per dollar spent, with 100 points earning $5 off — it’s easy for guests to understand and works across a variety of formats.

If you’re running more than one venue or simply want to make your regulars feel like VIPs, a tiered loyalty program can be a smart move. It’s a clever way to keep people coming back and encourage that little extra spend to reach the next level.

And then there’s the subscription model, which has taken off in recent years. Pret A Manger’s coffee subscription is a great example where guests pay a flat fee and can grab multiple barista-made coffees each day. It builds daily habits, boosts foot traffic, and creates a steady, predictable revenue stream for the business.

Keep the maths simple. Guests should understand rewards in seconds. If it takes longer than the walk to the counter, it's too complex. Restaurant & Catering Australia, the industry body representing over 57,000 hospitality businesses nationwide, provides resources and guidance on implementing customer retention strategies that work for Australian operators.

Make Sign-Up Frictionless

The easier it is for guests to join, the faster your loyalty program will grow. The best approach is to make sign-up part of the ordering flow rather than an extra step. With Toast Loyalty, guests can start earning rewards automatically when they pay—no separate app, no paper punch cards, no awkward sign-up moments at the counter.

Sweeten the deal with a small but meaningful incentive, like a free coffee or dessert on their next visit. This works particularly well for casual dining (47.5%) and fast casual (29.5%) venues—the two formats Australians frequent the most, according to the Toast Consumer Preferences Survey 2025 .

Digital integration is key. A DoorDash report found that 40% of Australians order from the same restaurant via app at least once a week, highlighting just how powerful it can be to connect loyalty directly to customers’ preferred ordering channels. When rewards are seamlessly earned and tracked through the same platform they’re already using, participation rates skyrocket.

Keep Guests Engaged Without Overwhelming Them

Once someone joins your loyalty program, the goal is to keep them interested but not drown them in notifications. A single, well-timed reminder when they’re close to unlocking a reward can work wonders, especially when you also show their points on receipts or POS screens so the value feels real and immediate.

Perks are important, but surprises can be even more powerful. A little unexpected treat—like a free brownie slipped in with their order—can turn a regular visit into a memorable one and keep guests coming back.

For multi-site groups, having loyalty fully integrated across all locations makes life easier for everyone. Guests can earn and redeem rewards anywhere, and your team can avoid manual work and those “oops, forgot to apply” moments that frustrate both staff and customers.

And don’t forget the legal side: under Australia’s Spam Act 2003, any promotional messages need clear consent and an easy way to unsubscribe. Build these steps into your sign-up flow from day one to stay compliant and build trust with your guests.

Track What Good Looks Like

Success isn't just about sign-ups. It's about retention. Track metrics weekly to keep your program healthy. Aim for 10 to 25 sign-ups per 100 transactions once staff scripts and processes are in place. Monitor whether members are coming back more often than non-members, and check that your reward redemption rates indicate perks feel achievable, not out of reach. A healthy redemption rate means you've hit the sweet spot between generous and sustainable.

Toast's real-time reporting tools make it easy to measure this across multiple venues and adjust quickly if something's not landing. 

Building Lasting Relationships

Your best customers are the ones who keep showing up. The regular who pops in twice a week. The family who's been coming for Sunday brunch since you opened. The office worker who knows your menu better than you do.

A good loyalty program doesn't create these people—it recognises them, rewards them, and gives them even more reasons to stick around. And when it's built into the way you already run your restaurant, not bolted on as an afterthought, that's when the magic happens.