Why Restaurant Loyalty Programs Matter More Than Ever
Acquiring a new customer costs 5x more than retaining an existing one. For restaurants operating on 5-10% margins, the math is brutal: spend $25 acquiring a new diner who visits once, or spend $5 nurturing an existing customer who visits 12 times a year. Loyalty programs are the most cost-effective retention tool available.
The numbers are striking. According to the National Restaurant Association, restaurants with active loyalty programs see 25-35% higher customer retention rates and a 20% increase in average ticket size. Loyalty members visit 2.5x more frequently than non-members. In an industry where a 5% increase in retention can drive a 25-95% increase in profit (Harvard Business Review), loyalty isn't optional — it's survival.
But not all loyalty apps are created equal. Some charge commissions, others lock you into ecosystems, and many offer features you'll never use. This guide compares the top 8 platforms so you can make the right choice for your restaurant.
Top 8 Restaurant Loyalty Program Apps Compared
| Platform | Monthly Cost | Commission | Best For | Key Feature |
|---|---|---|---|---|
| Square Loyalty | $45-$90/mo | None | Square POS users | Automatic enrollment at checkout |
| FiveStars (Sumup) | $149-$299/mo | None | Multi-location chains | AI-powered marketing automation |
| Toast Loyalty | $50-$75/mo | None | Toast POS users | Deep POS integration + online ordering |
| Paytronix | Custom pricing | None | Enterprise (100+ locations) | Gift cards + loyalty + ordering unified |
| Punchh (PAR) | Custom pricing | None | Enterprise QSR | Advanced segmentation + CDP |
| LevelUp (Grubhub) | Free tier available | Commission on orders | Delivery-focused restaurants | Built-in ordering + loyalty |
| Stamp Me | $59-$119/mo | None | Small single-location | Digital stamp card simplicity |
| Buildify | Custom | None, ever | Restaurants wanting full ownership | Custom-branded app with loyalty built in |
Detailed Reviews
1. Square Loyalty
Price: $45/mo (1 location) to $90/mo (multi-location)
If you already use Square for payments, Square Loyalty is the easiest path to a loyalty program. Customers are automatically enrolled when they pay — no app download required. They earn points (stars) per purchase and redeem rewards you define. The integration is seamless: your POS, online orders, and loyalty all live in one system.
Strengths: Zero friction enrollment, excellent reporting, affordable pricing.
Weaknesses: Limited customization, no branded app (customers use the Square app), no push notifications.
2. FiveStars (now Sumup)
Price: $149-$299/mo depending on features
FiveStars uses AI to automatically segment your customers and send targeted offers. A customer who hasn't visited in 30 days gets a "We miss you" offer. A frequent visitor gets a VIP perk. This "set it and forget it" approach is powerful for busy operators who don't have time for manual marketing.
Strengths: AI-powered automation, 60+ million consumer network, excellent analytics.
Weaknesses: Higher price point, customers must download the FiveStars app (not your brand), requires their hardware tablet.
3. Toast Loyalty
Price: $50-$75/mo (add-on to Toast POS)
Toast Loyalty works best within the Toast ecosystem. Customers earn points on every purchase made through Toast POS or Toast Online Ordering. The key advantage is data unification — you see a customer's in-store purchases, online orders, and loyalty status in one place.
Strengths: Tight POS integration, combined ordering + loyalty data, good for multi-location Toast users.
Weaknesses: Only works with Toast POS, limited customization, basic marketing automation.
4. Paytronix
Price: Custom (typically $500-$2,000/mo for enterprise)
Paytronix is the enterprise solution used by Panera Bread, Einstein Bros, and Qdoba. It unifies gift cards, loyalty, online ordering, and CRM into a single platform. The AI engine predicts customer behavior and triggers targeted campaigns automatically.
Strengths: Enterprise-grade, predictive analytics, omnichannel, gift card integration.
Weaknesses: Expensive, complex implementation, overkill for single-location restaurants.
5. Punchh (by PAR Technology)
Price: Custom (enterprise pricing)
Punchh powers loyalty for Yum! Brands (Taco Bell, KFC, Pizza Hut). It's a customer data platform (CDP) with loyalty built in. The key differentiator is advanced segmentation — you can target customers by visit frequency, spend level, preferred items, location, and dozens of other attributes.
Strengths: Best-in-class segmentation, proven at massive scale, deep analytics.
Weaknesses: Enterprise-only pricing, long implementation timeline, requires dedicated marketing team.
6. LevelUp (by Grubhub)
Price: Free tier available, commission on orders
LevelUp combines mobile ordering and loyalty into one platform. It's part of the Grubhub ecosystem, which gives you access to their delivery network. The downside: Grubhub takes a commission on orders placed through their platform. Your loyalty data also lives within their ecosystem.
Strengths: Low upfront cost, built-in delivery, large consumer network.
Weaknesses: Commission fees, you don't own the customer relationship, limited branding.
7. Stamp Me
Price: $59-$119/mo
Stamp Me digitizes the classic punch card. It's dead simple: customer buys a coffee, gets a digital stamp, earns a free drink after 10 stamps. That's it. No complex points systems, no AI, no segmentation. For a small cafe or bakery that just wants a basic loyalty program without complexity, Stamp Me works.
Strengths: Simple, affordable, customers understand it instantly.
Weaknesses: Very basic, no marketing automation, no ordering integration, limited analytics.
8. Buildify
Price: Custom (contact for pricing)
Buildify builds you a fully custom-branded app with loyalty as a core feature — not a bolt-on. Your app, your brand, your App Store listing. The loyalty program is integrated with ordering, push notifications, and analytics from day one. Unlike platforms where customers download "Square" or "FiveStars," your customers download your app.
Strengths: 100% branded, no commissions ever, full data ownership, integrated ordering + loyalty + marketing.
Weaknesses: Higher upfront investment than SaaS tools, longer setup time.
How to Choose the Right Loyalty Platform
Use this decision framework:
- Already on Square POS? → Start with Square Loyalty ($45/mo). Lowest friction.
- Already on Toast POS? → Add Toast Loyalty ($50/mo). Best integration.
- Want automation without effort? → FiveStars ($149/mo). AI does the work.
- Enterprise (50+ locations)? → Paytronix or Punchh. Built for scale.
- Want full brand ownership? → Buildify. Your app, your data, your brand.
- Just need a digital punch card? → Stamp Me ($59/mo). Simple and cheap.
ROI Calculator: Is a Loyalty Program Worth It?
Here's a simple calculation for a restaurant doing $30,000/month in revenue:
- Average customer spends: $25/visit
- Average visits per month (no loyalty): 1.5
- Average visits per month (with loyalty): 2.5 (+67%)
- Revenue per loyal customer per month: $62.50 (up from $37.50)
- If 200 customers join your loyalty program: $5,000/month additional revenue
- Annual impact: $60,000+ in retained revenue
Even at $299/month for FiveStars, the ROI is 16:1. With Buildify's commission-free model, it's even higher. See our ordering system comparison for more on maximizing restaurant revenue.
Common Mistakes to Avoid
- Making rewards too hard to earn: If a customer needs 20 visits to earn a free appetizer, they'll give up after 3. Make the first reward achievable within 3-5 visits.
- Not promoting the program: The best loyalty program in the world fails if nobody knows about it. Train staff to mention it at every checkout. Put table tents at every table. Add it to your receipts.
- Over-complicating the structure: "Earn 1 point per $1, double points on Tuesdays, triple points on your birthday, 100 points = $10 reward" is confusing. Keep it simple.
- Ignoring the data: Your loyalty platform generates valuable data about customer behavior. If you're not using it to make menu and marketing decisions, you're leaving money on the table.
- Choosing based on price alone: The cheapest option isn't always the best. Factor in customer experience, brand perception, and long-term data ownership.
FAQ
What is the best loyalty program app for restaurants?
It depends on your POS system and needs. Square Loyalty is best for Square users ($45/mo). Toast Loyalty is best for Toast users ($50/mo). FiveStars is best for automated marketing ($149/mo). For full brand ownership, Buildify builds custom loyalty into your own branded app.
How much does a restaurant loyalty program cost?
Monthly costs range from $45 (Square Loyalty) to $299 (FiveStars) for SMB solutions. Enterprise platforms like Paytronix and Punchh have custom pricing starting around $500/month. Custom-built loyalty apps from an agency cost $15,000-$50,000 upfront.
Do loyalty programs actually work for small restaurants?
Yes. Data consistently shows that loyalty program members visit 2-3x more frequently and spend 20% more per visit than non-members. Even a basic digital punch card can measurably increase repeat visits.
Start Building Customer Loyalty
Ready to stop losing customers to competitors? Talk to Buildify about building a custom loyalty experience that your customers actually want to use. Explore our restaurant marketing tools guide for more strategies to grow your restaurant.