Strategy

4 KPIs for restaurant loyalty programs

4 KPIs for restaurant loyalty programs

A KPI doesn’t change behavior unless someone is accountable for moving it. Most loyalty dashboards lead with “total members” — a number that goes up forever and tells you nothing. These four KPIs tell you whether your program is healthy.

1. Member share of revenue

Of every 100 TL through the till, how many come from members vs walk-ins? Healthy F&B programs hit 35–55%. Below 25% means activation is weak; above 70% might mean you’re discounting your most loyal customers.

2. Active member rate

Members who visited at least once in the last 60 days. Above 40% is solid for café and restaurant programs; above 60% is excellent. Below 25% means you’re collecting names, not building habits.

3. Frequency lift

Average visits per month for members vs the same customer cohort before they joined. A 25–40% lift is the benchmark. If members and non-members visit at the same rate, the program isn’t earning the cost of running it.

4. Reward redemption rate

Of issued rewards (points, gifts, discounts), what % gets redeemed? Above 60% is healthy. Below 40% means rewards are too hard to use, or members forget they have them.

Track these weekly. Tracking them monthly hides the trend lines that matter.