2-minute read ---

Gift cards have become an integral part of the restaurant industry, providing a win-win situation for both customers and businesses. For customers, gift cards are a convenient and thoughtful gift option. For restaurants, gift cards generate immediate revenue, increase brand awareness, and encourage repeat business.

​Here are some of the reasons why gift cards are so profitable for restaurants, and how restaurants can use gift cards to maximize sales.

Gift cards generate immediate revenue, increase brand awareness, and encourage repeat business

1. Immediate Cash Flow
When a customer purchases a gift card, the restaurant receives the money upfront, long before any food or services are provided. This immediate influx of cash can be especially helpful during lean times or for new establishments seeking to establish a financial foothold. Additionally, this prepayment mechanism acts as an interest-free loan for the restaurant, allowing it to use the funds for operational expenses or growth initiatives.

2. Breakage Income
Breakage income refers to the revenue generated from restaurant gift cards that are purchased but never redeemed. About 51% of gift card balances go unclaimed. This unused balance becomes a source of profit for restaurants. However, it's essential for restaurants to be aware of local laws and regulations related to gift card expiry and breakage income.

3. Customer Acquisition and Brand Awareness
Gift cards are often given as presents to friends, family, or colleagues, introducing new customers to the restaurant. As a result, restaurant gift cards serve as an excellent marketing tool, expanding brand awareness and driving new business to the establishment.

4. Upselling Opportunities
Customers using restaurant gift cards are more likely to spend more than the card's face value, taking advantage of the "free money" concept. This upselling potential is a great way for restaurants to boost their overall sales and profitability.

5. Customer Loyalty
Gift cards incentivize repeat visits, as customers may return to the restaurant to use the remaining balance on their card or to redeem promotional offers associated with the gift card. This enhances customer loyalty and leads to increased long-term revenue.

Strategies to Improve Gift Card Sales

• Seasonal Promotions

​Restaurants can offer gift card promotions during peak gift-giving seasons such as the holidays, Mother's Day, Father's Day, and Valentine's Day. Limited-time offers create a sense of urgency and encourage customers to make immediate purchases.
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• Loyalty Programs

​Incorporating gift cards into a restaurant's loyalty program can provide customers with an added incentive to make repeat purchases. Restaurants can offer points or rewards for every gift card purchased, enhancing the appeal of gift cards as a purchase option.
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• Bundle Offers

Restaurants can create gift card bundles, such as offering a free appetizer or dessert with the purchase of a gift card. These value-added offers can entice customers to buy gift cards and enhance their overall dining experience.

• Online Sales

Restaurants should leverage their online presence to sell gift cards. By offering e-gift cards or making physical gift cards available for purchase on their website, restaurant owners can tap into a broader customer base and increase sales.

• Attractive Packaging

Unique and attractive packaging can make restaurant gift cards more appealing as a gift option. Creative packaging can also enhance the perceived value of the gift card and create a memorable unboxing experience for the recipient.

• Ease-of-Use

Digital gift cards provide a contactless, easy way for customers to buy and share restaurant gift cards with family, friends, and colleagues.

• Employee Incentives

Restaurants can incentivize their staff to promote gift card sales by offering rewards or bonuses for employees who sell the most gift cards. This approach can create a competitive and motivating environment that drives gift card sales.

In conclusion, gift cards are a valuable tool for restaurants, providing an array of benefits, from immediate cash flow to customer acquisition and brand awareness. By implementing effective strategies to boost gift card sales, restaurants can further capitalize on this profitable revenue stream.

Value-added offers can entice customers to buy gift cards and enhance their overall dining experience

Aldelo Express Multi-Store Masa+ Gift Cards

Aldelo Express Cloud POS supports a seamlessly integrated multi-store gift card solution through the native Masa+ app. Masa+ Gift Cards support:

• physical and digital (eGift) cards
• in-store and online purchase, reload, and redemption at multiple store locations
• ​easily shared via SMS text message and ready for immediate use
• Masa+ eGift Card sharing via SMS text message
• integration at Aldelo Express Self-Service Kiosks, and Masa+ Online Orders
• QR code-based ordering and eGift redemption

​Learn more by contacting an Aldelo representative today at​ [email protected] or 925-621-2410​

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​Restaurants that use ultra-competitive
Aldelo Pay or Aldelo Partner Merchant Services
obtain access to
a Centralized Multi-Store Restaurant Technology Platform
that includes Masa+ Online Ordering,
Unlimited Software Releases,
​Unlimited Software Upgrades, and 24/7 Technical Support!


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Please contact an Aldelo representative today for more details, 
including a free Aldelo Express POS demo trial

[email protected] | 877-639-8767 | [email protected]

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