How to select restaurant credit card partners, offer food to attract customers – CNBC TV18

Restaurants are strategic in selecting credit card companies, banks and apps for dining offers. The correct partnership can promote sales, increase customer retention and strengthen brand loyalty.

How to select restaurant credit card partners

The decision to partner with a credit card provider is affected by several factors.

Manish Sharma, co-founder of Karigari, says, “The primary idea is a customer base of the card provider. For example, the American Express has 122 million users, offering significant risk to high-value customers.”

Commission fees also play an important role, in which restaurants usually pay 1.5–2% per transaction.

Additionally, targeted marketing opportunities provided by the card issuer helps to attract and maintain customers. Awards and benefits, such as cashbacks and discounts, sweete the deal for both restaurants and dinner.

“Carefully reviews to ensure long -term trade alignment, including terms of partnership, its duration, specificity and termination,” says Sharma.

Most effective food offers for customer retention

Restaurants use an offer mixture to attract and maintain customers.

“Percentage discounts, such as 20% discount, are most effective in driving sales,” says Sharma.

The loyalty encourages the reiterate trips to repeat, while a buy a free (bogo) deals not only increase sales, but also providing valuable customer data.

Limited time proposals promote immediate footfalls, while cashback and loyalty points add additional values, encouraging future expenses.

Festive and seasonal drives provide sales

Both restaurants and dinner benefit greatly in festivals and seasonal propaganda. Sharma said, “Sales may increase by 15-20% during the holidays.”

These offers also attract new customers, including 40% dinner, which are ready to try new restaurants during the festive period.

Additionally, 60% of dinner returns to restaurants offering seasonal discounts.

“Festivals create memorable food experiences, which is why 80% of people combine the holidays with food,” they say.

Immediate discounts vs cashback and loyalty points

When it comes to customer preferences, quick discounts are clear winners.

Says Sharma, “About 75% of customers prefer to reduce the immediate price on cashback or loyalty points.”

Cashback is only 15% in favor, while 10% opt for loyal points.

The immediate benefit of discount makes it the most attractive option for dinner.

Rise of food apps and changing trends

Dining apps such as Zomato Gold and Swiggy Dineout have changed how restaurants offer deals.

Says Sharma, “Previously, restaurants depended on in-house promotion, but now 70% of them provide deals through food app.”

Sales have increased by 40% due to participation with these platforms.

Additionally, 60% of dinner discover new restaurants through these apps.

Credit card with food benefits

For consumers, credit cards with food perk provide additional value.

SBI Card Prime and HDFC Bank Dinners Clubs provide prizes and discounts in card restaurants such as cards.

Similarly, Axis Bank My Zone Credit Card offers a discount on food distribution and restaurant food, while SBI provides bonus points for food through the sympathetic credit card specific app.

Here are other credit cards that provide food benefits

Eazydiner indusind bank credit card (annual fee 🙂 1,999)

• Honor 12-Mahine Egidiner Prime Membership ₹ 2,495.
• Selected restaurants and bars up to 50% discount, and 3x eazypoints on spending through eazydiner prime.
• Extra 25%up to ₹ 1,000 in the participant restaurant via Payeazy on the eazydiner app.
• 2,000 eazypoints and a postcard hotel stay voucher as a welcome bonus.

Swiggy HDFC Bank Credit Card (Annual Fee 🙂 500)

• A three -month Swiggy one membership ₹ 1,199.
• 10% cashback on swiggy food order, instamart, dineout, and genie (per month).
• 5% cashback (per month) up to 1,500 on all online expenses).
• Annual fee discount at an annual expenditure of ₹ 2 lakh or more.