Beyond Discounts: Three Strategies to Enhance Customer Loyalty

Hospitality loyalty programmes are booming – with big names such as Wagamama and Leon both recently launching their own schemes. Operators are increasingly adopting diverse methods to cultivate customer loyalty, leading to creative and engaging experiences for their customers. As part of our Loyalty Collective, where we gather top industry names to discuss all things loyalty in an open and honest conversation, we spoke with some of the industry’s top operators to explore various loyalty schemes they are implementing.

Gusto: Subscription-Based Membership

In March this year, Gusto become the UK’s first casual dining brand to launch a subscription-based membership programme. The Gusto Platinum Club is £65 a year or £6 monthly, and members receive 40% off food from Sunday-Thursday for themselves and up to three guests. Members also receive a complimentary bottle of Prosecco to take home upon sign-up and exclusive invites to menu launches.

This model not only rewards loyal customers but also encourages dining out during quieter days of the week.

And how is this working out for Gusto? Well, Kat Schofield, Marketing Director at Gusto, told us that the subscription model is boding well. Since launching, they’re seeing frequency of visits double, along with a noticeable increase in upsells. Kat says that customers are opting for nicer bottles of wine, or going for two rounds of cocktails, all thanks to the 40% discount off food.

Flat Iron: The Carcass Club

Flat Iron has taken a unique approach with its Carcass Club, which is a series of exclusive one-off events that highlight rare types/cuts of beef.
For £20 per person, attendees receive a delicious meal that includes a special steak, beef dripping chips, sauce, a glass of wine, and Flat Iron’s signature popcorn and Tahitian vanilla ice cream. This event is walk-in only and operates on a first-come, first-served basis, adding an element of excitement and exclusivity.

Darren Smith, Head of Operations at Flat Iron, said that by offering a slightly elevated experience, Flat Iron are cultivating customer loyalty without relying on a cut and paste offer. This approach makes each visit feel special and effectively showcases and promotes a particular restaurant.

Cosy: The Penny Club

At Cosy, loyalty takes on a tangible form with their Penny Club. Customers receive a physical coin that grants them access to a special offer: 2-for-1 house cocktails from Tuesday to Saturday. Membership is by invitation only, creating a sense of exclusivity. Customers share their name and favourite cocktail, which is recorded in a physical book at the cocktail bar, enhancing the personal touch of the experience.

Rosie Lewis-Marsh, Hospitality Sales and Marketing Consultant for Yummy Collection, emphasises the importance of having a compelling story behind loyalty programmes, rather than simply offering free points. She observes that the younger generation, who have always accessed music online through platforms like Spotify, are now rediscovering CDs and vinyl records. Rosie says that people crave something tangible and want to feel connected, like being part of a club, and this approach to loyalty schemes can create that club-like atmosphere, making customers feel truly involved.

These innovative loyalty schemes illustrate how hospitality operators are thinking outside the box to engage customers and foster lasting relationships. By offering unique experiences and personalised rewards, they are not just retaining customers but creating a community that keeps returning for more.