Increase Customer Retention with Item-Based Rewards in Toast Loyalty

Ditch the generic discounts! With Toast Loyalty’s item-based rewards, restaurants can offer free menu items instead of cashback. Boost guest engagement by rewarding customers with their favorite dishes. Learn how to set up item-based rewards today!

Why Item-Based Rewards Matter for Restaurants

Loyalty programs are a powerful tool for increasing repeat business, but traditional cashback rewards may not always be the best fit for your restaurant. With Toast Loyalty’s item-based rewards, you can offer your guests specific menu items instead of a generic discount. This approach encourages customers to return for their favorite dishes while giving you more control over the rewards you offer.

By configuring menu items, menu groups, or menu subgroups as loyalty rewards, you create an enticing incentive that aligns with your brand and enhances the dining experience. Plus, guests love receiving free food—it feels more like a gift than just a discount.


How Toast Loyalty’s Item-Based Rewards Work

Toast’s item-based rewards program allows you to assign specific menu items as redeemable rewards. Instead of offering a percentage or dollar-off discount, you can let customers earn:

  • A free appetizer after a set number of visits
  • A complimentary dessert for reaching a spending milestone
  • A buy-one-get-one (BOGO) offer for select entrees
  • A signature cocktail as a reward for repeat visits

This approach works exceptionally well for restaurants with popular signature dishes. If you have a best-selling burger, artisanal pizza, or famous dessert, offering it as a loyalty reward can build excitement and keep guests coming back.


Configuring Menu-Based Rewards in Toast POS

Setting up item-based rewards in Toast is simple:

  1. Navigate to Toast Loyalty Settings – Access the loyalty configuration within your Toast POS dashboard.
  2. Select Your Reward Type – Choose “Item-Based Reward” instead of a cashback or points-based system.
  3. Assign Eligible Menu Items – Pick a specific item, menu group, or menu subgroup as the earned reward.
  4. Set the Earning Criteria – Define how guests qualify for the reward (e.g., number of visits, spending threshold).
  5. Save & Promote – Once configured, let your customers know about the rewards to encourage participation.

By offering rewards that align with your restaurant’s brand and menu, you ensure that loyalty points translate into real customer engagement.


Why Item-Based Rewards Are Better Than Discounts

Traditional cashback or discount-based rewards might seem appealing, but item-based rewards have key advantages:

✔️ Increases Average Check Size – Customers often order additional items when redeeming their reward.
✔️ Highlights Your Best Dishes – Encourages customers to try (and fall in love with) your signature menu items.
✔️ Feels More Valuable – A free entrée or dessert has a higher perceived value than a small discount.
✔️ Encourages Repeat Visits – Customers are more likely to return if they’re working toward earning a specific reward.


Boosting Sales with Smart Reward Strategies

Item-based rewards can be strategically used to drive revenue and customer retention:

📌 Promote High-Margin Items – Select rewards with strong profit margins to maximize revenue.
📌 Offer Seasonal Specials – Rotate rewards to highlight seasonal or limited-time menu items.
📌 Upsell with Reward Redemptions – When a guest redeems a reward, train your staff to suggest add-ons or pairings.
📌 Encourage Social Sharing – Guests love to share their free rewards on social media, giving you free marketing.


Start Using Item-Based Rewards with Toast Today!

If you’re already using Toast POS, adding item-based rewards to your loyalty program is a simple but powerful way to increase customer retention and boost sales. Give your guests something they’ll crave—a free menu item they’ll come back for!

Ready to enhance your loyalty program? Contact us today to learn more about Toast POS and how it can transform your restaurant’s rewards strategy.

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