How can smaller hospitality businesses make loyalty work?

Traditional loyalty schemes aren’t for everyone, of course. Some operators – particularly independent, single or smaller venues – may not feel the need for a formal or complex scheme but will nonetheless be looking to engage consumers and build loyalty.

In this article, we take a look at some operators who are approaching loyalty a little differently.

Flat Iron: The Carcass Club

Flat Iron, the London-based steak specialist, has taken a unique approach with its Carcass Club, 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.

Anglian Country Inns: ACI Loyalty

Anglian Country Inns is a family-run pub operator with 10 venues based in Norfolk and Hertfordshire. It has looked to create more of a “members club” look and feel to its loyalty scheme.

Managing Director, James Nye, explains: “Our loyalty scheme is a little different, in that we offer a card that can be pre-loaded with cash, acting a bit like a membership scheme, which can be used across all our pubs.

“It’s not run on a points-based system like a Nectar card but more about rewards such as ‘buy 5 coffees, get the 6th free’. This works well for us, not least because it means we have the cash up front – some of which does not get redeemed. People don’t talk about that but it is a benefit for us.”

Cosy: The Penny Club

At Cosy, a cocktail bar near Euston Station in London, 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.

Key takeaways for smaller hospitality businesses

Businesses like Flat Iron, Anglian Country Inns, and Cosy are demonstrating that loyalty isn’t a ‘one size fits all’ practice, the objectives and approach can (and should) be individual to every business.

For independent venues and smaller groups, taking a creative, personalised approach to loyalty can be a great way to set your venue apart from the competition, and build loyalty.