Gift cards are a staple for restaurants, but not all gift card programs are created equal. If your restaurant still relies on paper gift cards or cards tied exclusively to your in-store POS system, you’re leaving revenue on the table. In today’s digital world, customers expect more flexibility: gift cards that can be stored digitally, redeemed across any sales channel, and given as gifts that work seamlessly for both dine-in and online orders. Gift Cards in every channel drives more revenue.
Here’s why modernizing your gift card program can unlock a powerful revenue stream for your restaurant.
Restaurant Gift Cards: The Growing Opportunity
The market for restaurant gift cards is booming. A Capital One study predicts the industry will triple in size over the next five years. And customers aren’t just using gift cards—they’re spending beyond them.
- 61% of customers spend more than the card’s value when redeeming, averaging an additional $31.75 per transaction.
- 90% of consumers see gift cards as a thoughtful and appreciated gift.
- Despite this, unredeemed gift card balances are growing. The average American now holds $244 in unused gift cards, up 30.5% since 2023.
For restaurants, this means selling gift cards drives immediate revenue—often with a portion that’s never redeemed, resulting in higher profit margins. And for the 70% of gift card purchasers who buy for others, you’re not just selling a card; you’re introducing new customers to your brand.
Why Multi-Channel Restaurant Gift Cards Matter
Most restaurants only allow gift cards to be redeemed for dine-in service, due to outdated systems or a reluctance to change. But offering gift cards that work across all channels—including online ordering—opens the door to new opportunities:
1. Meet Digital Expectations
Today’s consumers live digitally, and gift cards are no exception. 75% of Millennials have used a digital gift card, and the demand for mobile wallet compatibility is growing. Cards stored in Apple Wallet or Google Pay make it easy for customers to carry and use their gift cards, driving redemption—and more orders.
2. Seamless Omni-Channel Experiences
Thanks to brands like Amazon, customers expect seamless interactions across every channel. When a customer tries to place an online order but can’t use their gift card, it creates friction and frustration. Allowing gift cards to be redeemed online helps ensure that every customer interaction is smooth and satisfying, building trust and loyalty.
3. Capture Valuable Customer Data
When customers redeem gift cards online, you gain access to their email addresses, phone numbers, and order history—data that can fuel personalized marketing campaigns. Traditional dine-in gift card logs don’t offer this level of insight, but online redemption turns every gift card into a data goldmine.
A Better Restaurant Gift Card Solution with Dine Local
Dine Local’s Gift Card program is designed to meet the demands of today’s restaurant customers while keeping things simple for operators. Here’s how it works:
- Multi-Channel Redemption: Gift cards can be redeemed online, in-store, or through takeout and delivery—no limitations.
- Digital Integration: Cards can be delivered instantly via email, downloaded as PDFs, or added directly to mobile wallets.
- Easy Setup: Use our app to issue digital cards or generate codes for existing physical cards, making them omni-channel in minutes.
- Seamless for Staff: In-store redemption is straightforward, and online orders are processed automatically.
With Dine Local, your gift cards become a true revenue driver—attracting new customers, encouraging higher spend, and increasing profitability through unredeemed balances.
Ready to Level Up Your Restaurant Gift Card Program?
Modern gift cards aren’t just a convenience—they’re a strategic tool to grow your business. If you’re ready to offer gift cards that work across every channel, let’s talk. With Dine Local, upgrading your gift card game has never been easier. Contact us today to get started!