Loyalty Must Offer Real-Time Value to Survive Menu Sticker Shock

While value-seeking restaurantgoers look to loyalty programs, discounts alone aren’t enough to put butts in seats, overcome high menu prices or guarantee brand allegiance, according to data from PAR Technology. 

“Discounts remain one of the strongest drivers of dining decisions, but guests are increasingly focused on how and when those savings show up,” said Joe Yetter, General Manager of PAR Engagement. “People are actively comparing loyalty offers and are willing to switch restaurants for better value, especially when discounts are readily available. What resonates most are offers that feel immediate and worthwhile, rather than delayed or overly complex. Brands that deliver savings in a clear, timely way are better positioned to stay top of mind without overloading guests.”

Among the key findings:

• Nearly 70 percent of consumers maintain or increase loyalty program usage during economic uncertainty. Yet, 45 percent still skip dining out entirely because base menu prices remain too high.

• Almost half of consumers routinely compare loyalty offers before choosing where to eat with 25 percent  saying they would switch to a less-preferred restaurant for better perks, while another 47 percent could be swayed depending on the deal.

• Discounts (40 percent) and free items/upgrades (22 percent) remain most influential. Better rewards value (54 percent), superior food quality (45 percent), and ease-of-use (30 percent) drive program switching.

• Consumers favor smarter rewards (31 percent) or no AI features (26 percent). Deep automation and predictive tools score lower, signaling a preference for enhancements that simplify, not overhaul, the loyalty experience.

“Even with menu prices on the rise, diners continue to rely on loyalty programs to help them decide where to eat, noted Yetter. “The key takeaway is that loyalty only works when it delivers clear, immediate value. Programs that make rewards simple, relevant, and easy to redeem are the ones that influence choice and keep guests coming back.”

The key takeaway is that loyalty only works when it delivers clear, immediate value.

He added that while it wasn’t surprising that diners are focused on value, it was notable how willing they are to compare offers and switch restaurants for a better deal with clear boundaries. 

“Guests want timely rewards, but programs that feel overly predictive or intrusive can backfire. Striking the right balance between helpful and overbearing is what really matters. Simple, tangible rewards like instant perks or small surprises consistently perform best. Quick, obvious value keeps diners engaged, while programs that are complicated, slow, or hard to redeem quickly lose relevance, especially as consumers become more cost-conscious.”

Guests are selective about which loyalty programs they engage with, so brands have to make their value obvious and immediate, Yetter explained, adding that when rewards are straightforward, timely and easy to use, loyalty feels less like marketing and more like a benefit.

“Better rewards value is the top reason people say they would switch programs, which tells us loyalty has to earn its keep. Real-time, spend-based rewards stand out here. More than half of respondents (52 percent) say these kinds of perks increase trust because they feel earned and valuable, not gimmicky.”

The data suggests convenience and trust are  the new currency of engagement and now inseparable in loyalty. At the same time, data revealed clear expectations around personalization.Brands that prioritize usefulness and transparency are more likely to earn sustained engagement.

“Guests want programs that are easy to use and fit naturally into their existing ordering and pay experience, and many say they would switch programs simply for more convenient features, said Yetter. 

For example, when asked about predictive features like anticipating a usual order, 22 percent said they feel uncomfortable or would avoid restaurants using this approach, and another 27 percent question its accuracy. 

To meet guest expectations, brands need to provide a frictionless experience as loyalty only works when it removes effort, not adds to it, Yetter pointed out, noting that  ease of use is a significant reason guests say they would switch programs, and when loyalty feels slow, confusing, or hard to manage, it’s often the first thing they abandon. 

“Nearly half of consumers say rising prices have caused them to skip dining out altogether, even when discounts are available, which means loyalty programs must work seamlessly to be effective. This seamlessness can look like quick sign-ups, simple mobile experiences, rewards that appear in real-time and redemption that doesn’t require extra steps or fine print.” 

AI can help loyalty programs feel more relevant and useful. For example, offering a surprise reward at the right moment. 

“Guests respond positively to these kinds of enhancements, but they’re far less comfortable with AI that tries to predict every behavior,” Yetter said.”The key is using AI to support the experience rather than over-engineer it.”

The report, "Loyalty Programs in Today’s Cost-Conscious Dining Landscape," was based on a survey of 1,000 U.S. consumers conducted by Dynata in September 2025.