Loyalty points: how a restaurant points program works and what it costs
Updated October 20, 2026
Loyalty points are credit a customer earns on every order, usually a percentage of what they spend, and spends on a later order. A program that gives 5% back as points turns a $40 order into $2 of credit for next time. The point is to give regulars a reason to order again from you rather than from somewhere else.
In short
- Earn on every order, redeem on a later one. Points make the reward feel earned, not a discount.
- The real cost is your earn rate, if customers spend all their points: a 5% rate is up to a 5% discount for members.
- Rules that matter: minimum order to earn, minimum points to redeem, how much of a bill points can cover, and whether points expire.
- On Menuthere loyalty points are on the Pro plan, set separately for delivery, takeout and dine-in.
Points vs stamp cards vs discounts
| Points | Stamp card | Discount code | |
|---|---|---|---|
| Reward | Credit worth a share of spend | A free item after N visits | Money off now |
| Rewards big spenders more | Yes | No; every visit counts the same | No |
| Works online | Yes, linked to the customer's account | Usually paper | Yes |
| Cost to you | The earn rate, on what's redeemed | One item per card completed | The discount, on every use |
| Good for | Regulars of every size | Coffee shops, simple visits | One-off pushes |
A paper card can still work at the counter; the free loyalty card maker prints one.
What does a points rate really cost?
If every point is spent, the earn rate is the discount members get. Not every point is spent, so the real cost is lower, but plan for the full rate.
| Earn rate | Customer spends $500 a year | Credit earned | Cost if all redeemed |
|---|---|---|---|
| 2% | $500 | $10 | 2% of their spend |
| 5% | $500 | $25 | 5% |
| 10% | $500 | $50 | 10% |
Compare that with a delivery-app commission of 15–30% on the same orders: a 5% points program on your own channel is a cheap way to keep a regular. See customer lifetime value.
A worked example in US dollars on Menuthere
On Menuthere one point is worth one unit of your currency, and points are whole numbers rounded down. In a US store, one point = $1. With a 5% earn rate:
| Completed order | 5% of the total | Points earned |
|---|---|---|
| $18.00 | $0.90 | 0 |
| $25.00 | $1.25 | 1 ($1) |
| $44.00 | $2.20 | 2 ($2) |
| $60.00 | $3.00 | 3 ($3) |
Because points round down to whole dollars, small orders can earn nothing at low rates. In US dollars, a rate of 5% or more, or a minimum order to earn, keeps the rules clear for customers. (Illustrative orders.)
How Menuthere handles loyalty points
- Pro plan. Turn it on under Promotions → Loyalty (Menuthere support enables it the first time).
- Rules per order type. Delivery, Takeaway and Dine-in each have their own switch, Earn rate (2% to start), Minimum order to earn, Max bill coverage (%) (100% to start) and Minimum points needed to redeem.
- Earning. Points are given when an order is marked Completed, once per order, to customers who are signed in; guest orders earn nothing.
- Redeeming. At checkout a customer with points sees a Loyalty points row with their balance and what it's worth, and can apply some or all, up to your bill-coverage limit.
- No expiry, and refunds handled. Points don't expire. Points spent on an order that is cancelled or never paid go back to the customer.
- Manage members. See each member's balance and history, and correct a balance by hand.
- More: restaurant loyalty program, help on setting up loyalty points.
What it doesn't do: points can't be set to expire, the point value is fixed at one unit of currency, and there are no tiers (silver, gold). There's no digital stamp card; use points, or a printed card for counter visits.
Reward regulars with points on your own ordering page, with no commission on their orders.
Related terms
- Customer lifetime value: what a regular is worth.
- Repeat customer rate: how many customers come back.
- BOGO: buy-one-get-one and other offers.
- RFM segmentation: finding the regulars worth rewarding.
FAQs
How do restaurant loyalty points work?
Customers earn points on each order, usually a percentage of what they spend, and spend them on later orders to cut the bill. The restaurant sets the earn rate and the rules, such as a minimum order and how much of a bill points can pay.
Are loyalty points better than a stamp card?
Points reward bigger spenders more and work online, linked to the customer's account. A stamp card is simpler and suits places where every visit is similar, like a coffee shop. Many restaurants use points online and a stamp card at the counter.
How much does a restaurant loyalty program cost?
If every point is redeemed, the cost is your earn rate on members' spend, for example 5% at a 5% rate. Unspent points lower the real cost. That is usually far less than a delivery app's commission on the same orders.
Do Menuthere loyalty points expire?
No. Points stay in the customer's balance until they are spent or you remove them. Points spent on an order that is cancelled or never paid are returned.
What is a point worth on Menuthere?
One point is worth one unit of your store's currency, so in a US store one point is $1. Points are whole numbers rounded down, so at low earn rates small orders can earn no points.
Sources (3)
- Menuthere help: Set up loyalty points, updated 6 Oct 2026 (Promotions → Loyalty; support enables, then Settings → Features; rules per order type; Earn rate 2% start, whole points rounded down; Minimum order to earn; Max bill coverage 100% start; Minimum points to redeem 1; one point = 1 in your currency, fixed; only completed orders; signed-in customers only): https://menuthere.com/docs/promotions/set-up-loyalty-points (accessed 20 Oct 2026)
- Menuthere help: How customers earn and redeem points, updated 6 Oct 2026 (earned on Completed; each order rewarded once; checkout Loyalty points row; up to Max bill coverage; points don't expire; returned on cancelled or unpaid orders): https://menuthere.com/docs/promotions/how-customers-earn-and-redeem-points (accessed 20 Oct 2026)
- Menuthere help: Manage loyalty members (balance and manual correction): https://menuthere.com/docs/promotions/manage-loyalty-members (accessed 20 Oct 2026)