With consumer spending squeezed and visit frequency down, finding ways to keep guests returning is a top priority for many hospitality businesses. Rising costs, increased competition, and tightened margins mean that these loyal customers – those that do visit repeatedly, and spend more when they do – are an incredibly valuable source of revenue.

But consumer loyalty is ever-shifting, and what guests want (and expect) is something that operators may not be able to easily keep track of.

Drawing on our quarterly research of over 5,000 British hospitality guests, here are four loyalty insights to help you better understand the hospitality loyalty landscape, and boost guest loyalty inside, and outside, your venues.

Connection is a key loyalty driver

Loyalty is about so much more than just collecting points on purchases, or exclusive deals. It’s also building connections with customers, and making them feel valued. In fact, 54% of consumers we’ve spoken to told us that they’d be more likely to return to a venue again when they feel personally valued by a brand during their visit.

This emphasis on connection is further backed by our recent GO Technology research People vs Tech in 2026, where human interaction has become increasingly important for guests during their visits to hospitality venues. Just under half of respondents (48%) said that human interactions are the most critical factor during their visits to hospitality – a rise of 19% since we last asked this question in 2023.

But how do venues deliver this connection that makes consumers feel personally valued? It’s the small touches that resonate the most – a birthday treat, personalised messages and offers on items guests like the most, giving them a choice in where to sit, or even just remembering them when they visit.

All of these little touches come together to help deliver a more memorable experience for guests which, ultimately, drive brand advocacy and keep them coming back for more.

Consistency is key!

Loyalty is hard earned, but even once it’s established, it can be fickle. 61% of consumers say that encountering problems during a visit would lead them to visit less (or even never visit again), meaning that it’s important to get the fundamentals of good hospitality right every time, alongside delivering memorable experiences.

This is especially true during the current cost-of-living crisis. Previous research has uncovered that since the start of the cost-of-living crisis, 16% of guests are less loyal to hospitality brands, however 52% have higher expectations of the brands they are loyal to.

Greater emphasis should therefore be placed on staff training, helping to ensure that your teams are delivering a consistent level of service that matches guest expectations.

Competition can trump loyalty

Whilst guests may love what you do, they are shopping around for a better offer. 1-in-3 guests told us that they are likely to switch their loyalty to another hospitality brand if they spot something better. This propensity to switch is slightly higher for restaurants, with 34% of guests likely to switch to a different restaurant brand compared to 29% for pubs and 30% for bars.

What’s particularly important to note here, is that more frequent users of hospitality are also the most likely to switch up who they’re loyal to. 41% of those that eat and drink out weekly say they are very or somewhat likely to choose a different venue, 17 percentage points higher than the 24% of those who go out less frequently.

These frequent users of hospitality are also the most lucrative, so securing their loyalty through a combination of delivering on hospitality fundamentals, and giving them memorable experiences, will be key.

Loyalty schemes are a powerful loyalty lever to pull, but beware of barriers…

47% of guests say that value for money is a key factor in their loyalty to hospitality brands, and with 90% of consumers open to joining a loyalty scheme, a loyalty scheme can be a great way of helping to enhance the value of your offering.

Currently, 58% of guests believe that loyalty schemes represent good value for money, and 47% have joined more loyalty schemes to save money since the cost-of-living crisis began.

But what types of loyalty schemes are popular with guests? Unsurprisingly, schemes focused on monetary rewards are the most popular, however there is demand for additional benefits that can increase engagement:

Which of these loyalty schemes do you find most appealing?

1. Member-only prices (49%)
2. Collecting points for purchases (39%)
3. Cashback (37%)
4. Deals on regularly-bought products (29%)
5. Stamp cards (14%)
6. Chance to win prizes (13%)
7. Personalised offers (12%)
8. Deals on products in a different sector (9%)
9. Digital receipts (8%)
10. Subscription schemes (8%)

Despite consumers’ willingness to engage with loyalty schemes, barriers to entry do still exist for many.

A not insignificant 38% are put off by upfront membership costs, whilst a further 29% don’t want to be locked into subscriptions, and 22% feel that they wouldn’t get enough value out of signing up to a scheme. This apprehension around upfront costs can be a barrier for many operators where running an associated scheme will have costs associated with it, so it’s important to ensure that communications around the value any loyalty schemes offer are clear and compelling.

What loyalty offers to your venue in 2026

So, now that we’ve seen the insights, what are the main benefits a focus on guest loyalty can bring to your business?

Increased customer retention – Loyalty programmes encourage repeat business.

Increased share of wallet – Loyal guests spend more with you over time compared to the occasional visitor!

Valuable customer insights – Customer loyalty is also a great way to feed further marketing activity, providing valuable insights into customer preferences and behaviours, and helping you to tailor your offering to further build and enhance loyalty.

Click here to learn more about Zonal’s loyalty platform and how it could help you increase repeat visits and drive revenue!

Zonal partner, Grateful, is a next-gen tronc management and earnings platform built for hospitality to deliver unrivalled transparency for teams and ensure effortless compliance with regulations for operators across the UK. To coincide with the Government’s current consultation on tipping legislation, Grateful has written this insightful guest blog to outline what hospitality operators need to know and how they can contribute to the consultation document.

When the Employment (Allocation of Tips) Act came into force in 2024, it changed the landscape for hospitality businesses overnight. Allocation processes became more formalised, transparency moved from good practice to legal expectation, and record-keeping climbed higher on the operational agenda. At Grateful, we worked closely with operators across the industry to help them adapt. And now, before the dust has fully settled, the Government is consulting again.

This time, the focus is on strengthening the law further by introducing a mandatory duty for employers to consult workers on tipping policies, when creating or updating them, and at least every three years thereafter. Employers would also be required to provide an anonymised written summary of the views expressed.
On the surface, that might sound manageable. In practice, anyone who works in hospitality will immediately recognise the complexity.

The Real-World Challenge
Hospitality is not a typical employment environment. Teams are large, shifts are variable, staff turnover can be high, and many businesses operate across multiple sites and brands. When the original tipping legislation landed, there was genuine friction across the industry, something Grateful saw first-hand when supporting clients through implementation. In part, the friction arose because the statutory guidance didn’t always reflect how hospitality businesses actually operate. Some examples were unclear. In one instance, guidance even contradicted existing legislation.

The current consultation is an opportunity to correct that. The Government is asking not just about the new duty to consult, but about how the existing Code of Practice has worked in real life, on fair distribution, transparency, and the record-keeping burden. These are not abstract policy questions. They go to the heart of daily operations, and at Grateful, we hear about these challenges from operators regularly.

Achieving meaningful consultation across a dispersed, shift-based workforce raises questions that don’t have simple answers. How do you include seasonal workers? What about agency or casual staff, where guidance is still unclear? How do you ensure representative input from across all departments, rather than just hearing from the most vocal people in the room? These are exactly the kinds of practical challenges policymakers need to understand.

The Wider Picture
There are also stronger voices entering the debate. Trade unions have indicated they believe the proposed duty doesn’t go far enough, with some calling for formal collective bargaining over tipping policies. There are also calls to reconsider the burden placed on workers within the employment tribunal process.
Whether you agree with those positions or not, the direction of travel is clear: policy is being shaped right now, through active input. If hospitality businesses remain silent, their perspective risks being left out of the final framework entirely. Grateful has been vocal on this point — operators cannot afford to sit this one out.

Why This Matters
It would be easy to treat this as another regulatory task to file away. That would be a mistake. The legislation will proceed regardless of whether operators respond. The Code of Practice will be drafted. The requirements will come into force, likely in October. The only variable is whether hospitality businesses have a hand in shaping what that looks like.

The consultation invites responses from employers, workers and customers. Everyone in hospitality occupies at least two of those roles. That combined perspective is genuinely valuable, and real, practical examples from the ground will carry real weight. Grateful’s own whitepaper on the consultation, developed following our February 2026 webinar, outlines the key issues in detail and is available for any operator who wants to understand the full picture before responding.

Policymakers need to understand how distribution models work across multi-site groups. They need to know where previous guidance has created confusion. They need to hear from all parts of the business, not just the loudest voices.

What to Do Now
There is no immediate operational change required at this stage. But now is the time to read the consultation document, reflect on how your business has experienced the tipping legislation over the past eighteen months, and think through how formal consultation would actually work across your sites. Grateful is here to support operators through that process.

To find out more about the UK Government Consultation on Tipping, visit: Make Work Pay: strengthening the law on tipping – GOV.UK. Responses must be submitted by Wednesday 1 April 2026 and can be sent by email to tipping@businessandtrade.gov.uk or via the Government’s online platform. You can respond as an individual, as a business, or from multiple perspectives, what matters is that your voice is included.

Tipping sits at the intersection of compliance, culture and commercial reality. Getting the framework right requires input from those who live it every day. At Grateful, we believe this consultation is one of the most important opportunities the hospitality industry has had to shape its own regulatory future. The question is whether the industry will take it.

Katie Linstead is Head of Services & Compliance at Grateful, a tronc and tipping specialist supporting hospitality businesses across the UK.

This article is for general information purposes and does not constitute legal advice.

The latest GO Technology report from leading hospitality tech provider Zonal, in partnership with NielsenIQ, reveals a growing consumer demand for a better balance between human connection and digital solutions. Whilst the role technology plays in a seamless visit is recognised, the importance of personal interaction is rising – highlighting the need for operators to blend the two, with a well-trained team of staff.

More than half of people (52%) now acknowledge technology has a key role to play in the best hospitality experiences, for example, and the report shows that those who do embrace technology tend to higher value guests, spending an average of £17 extra per month than those who prefer human-led experiences.

Nevertheless, 48% of consumers say human interaction is the most critical factor in a great hospitality experience, which is a marked increase since Zonal published a similar report three years ago and asked the same question. The research therefore demonstrates how striking the perfect balance between tech and personal service is more vital than ever.

Digital solutions can help to make people’s visits more convenient and keep them coming back—which in turn frees up staff to give their attention to less tech-focused guests who value the contact. In fact, when asked about their most wanted improvements in venues – around a quarter of consumers flagged staff training (26%) and staff numbers (24%), given they are such a visible part of the hospitality journey.

The report also looked to find out how much consumer preferences around paying the bill have changed in three years. The insight shows that, while there has been a surge in other payment methods, reports of the death of cash have, thus far at least, been greatly exaggerated:

1. Contactless cards remain dominant – 39% are using them more than three years ago, with only 4% never using them.
2. Cash use continues to fall – 43% use cash less often but older consumers still rely on it, especially for tipping.
3. Mobile payments are growing, but slower than cards – 31% increased usage since 2023, driven mainly by Gen Z (94%).
4. App and QR payments show signs of plateauing – 21% use them more, while 16% use them less than three years ago.
5. ‘Pay and go’ tech adoption is slow – Only 18% are using it more, 41% have never tried it, with strong uptake among Gen Z (80%) compared to Boomers (25%).

Tim Chapman, Chief Commercial Officer, Zonal, said: “This new research puts human interaction at the heart of the guest journey, with nearly half of consumers thinking interactions with staff are what deliver the best experiences. At the same time, technology does have an important role to play in supporting the delivery of these experiences – with 52% of consumers recognising its contribution to delivering high-quality experiences in hospitality. We know that technology plays a recognised role in helping operators deliver great guest experiences by enabling teams to spend more time with customers. This perfect blend of human interaction and seamless, accessible technology – removing friction and enhancing convenience – is what guests now expect.”

Karl Chessell, Director – Hospitality Operators and Food, EMEA, NIQ, said: “In a tough trading environment, this research is a useful reminder of the importance of both human interactions and digital solutions in hospitality. It shows how technology has become deeply embedded in consumers’ eating and drinking out habits, but it also highlights the enduring love for the personal touches that make pubs, bars and restaurants such special places.

Ultimately of course, this is not a zero-sum game. Very few people want their visits to be completely free of either personal contact or technology. Instead, operators need to identify the best places to deploy tech and spot the moments where personal connections are best. Flexibility is crucial too, and it’s the venues that can cater for all preferences—especially at the ordering, paying and tipping stages—that will be best placed to succeed in the years ahead.”