Consumers are expected to spend $160 billion on gift cards by the year 2018. Is your restaurant getting its share of gift card spending this holiday season?
In 2015, consumers purchased gift cards from restaurants more than anywhere else, including department stores.
According to the 2017 Prepaid Insights Study by First Data, the average consumer spends $38 more than the value of their gift card. The same study found 44 percent of consumers visit a place they would not have otherwise visited to use a gift card. Which means a strong gift card program at your restaurant can increase sales and the number of customers you serve.
Follow these five tips to increase gift card sales this holiday season.
1. Offer gift cards, not gift certificates. According to GiftCards.com, businesses who switch from paper gift certificates to plastic gift cards sell up to 35 to 50 percent more gift cards.
2. Show off your gift cards. At a quick service restaurant, keep gift cards on display near the register. At a full service restaurant display your gift cards near the hostess stand.
3. Market your gift cards. Put up a poster in the window, make a small menu insert or have your wait staff wear buttons. To reach customers outside your restaurant, post on Facebook or include information about your gift cards in an email blast. Just make sure people know you have gift cards for sale.
4. Incentivize your wait staff. Create a contest and award the waiter or waitress who sells the most gift cards in a week with a small prize.
5. Incentivize your customers. The most preferred incentive for purchasing a gift card is a discounted dollar amount, according to the 2017 Prepaid Insights Study. For instance, you could offer $10 off the purchase of a $100 gift card. The next preferred incentive is a bonus gift card with the purchase of a gift card. For this scenario, you would give away a separate $10 gift card for every $100 gift card purchase.
MobileBytes includes gift cards in its powerful suite of features. If you’re a MobileBytes merchant, ask your reseller for more information about how to start a gift card program at your location.