Let’s face it, grabbing a new client in the competitive restaurant scene makes one feel as though they are lottery winner. But you know what’s far better than a first date? Another, a third, and a hundredth! We are discussing return business, the golden grail of restaurant profitability. These are the people that adore your meal, not only enjoy it. You get the picture; they are your walking, talking billboards, devoted tribe, etc.
But how would you find out if your rate of repeat business is barely passable? Does someone have a magic number? One-size-fits-not is the spoiler alert here. Your type of restaurant, your attitude, and many other elements determine it. Not to worry, though; we will dissect it, assign some standards, and provide you the actual picture of what a “good” repeat customer rate for your company looks like.
Why Repeat Customers Are Your Restaurant's Secret Sauce
Let me clear one thing first: repeat business is everything before we dig into the figures. They are the foundation of a busy restaurant, not only a nice-to-have. The why?
- They Spend More: Ignore those one- and two-night eaters. Like great wine, repeat business becomes better with age (and expenditure increases). Studies reveal that returning consumers spend an amazing 67% more than new ones. (Source: Business.com)
- They are more reasonably priced to maintain. Pursuing fresh clients is costly. Getting a new client costs five times what keeping an old one does. (Source: Invesp). Imagine all the marketing funds you could cut out!
- Your biggest fans are these ones. Contented returning customers start brand champions. They essentially execute your marketing for you; they will brag about your food to their friends, write excellent internet reviews. One finds great value in word-of-mouth.
- Their patterns are more predictable. Knowing you have a foundation of devoted consumers helps you to create a more consistent income source, so facilitating future planning.
The worst part is that a meager 5% rise in customer retention will improve your profitability by 25% to a startling 95%. Let that sink in. (Source: Harvard Business Review)
Watch the podcast on YouTube where Arun AV along with Rev Ciancio talk about ‘Gift Cards & How to Turn Them Into a Profit’.
To listen on Spotify, click here
What IS a Good Repeat Customer Rate?
Okay, we understand you’re looking for some numbers. But here’s the truth: there is no one “golden” repeat customer rate that applies to all restaurants. It’s like asking, “What is the ideal temperature for coffee?” It is up to personal preference (and coffee!).
Several elements affect what is judged “good”:
- Restaurant Type: (duh!) This is what we are here for.
- Customer Experience: Are you impressing them with your excellent cuisine, service, and ambiance?
- Location, Location, Location. Are you in a handy location? Is competition fierce?
- Pricing: Do you provide good value for money?
- Marketing and Loyalty: Are you actively encouraging customers to return?
- Reputation: What do others say about you online?
Don’t worry, we won’t leave you hanging. We’ve included some estimated benchmarks to help you.
Repeat Customer Rate Benchmarks: Your Restaurant’s Roadmap
Here’s a breakdown of estimated “good” repeat customer rates for different restaurant types. Remember, these are guidelines, not gospel. Your mileage may vary! We’ll also throw in some tips to help you boost those numbers.
(Note: All rates are estimated and should be used as general benchmarks. Individual results will vary.)
| Restaurant Type | Typical Visit Frequency |
Estimated "Good" Repeat Customer Rate (Time Period) | Reasoning | Tips for Improvement |
|---|---|---|---|---|
| Quick Service (QSR) / Fast Food | Daily/ Weekly |
40-60% (90 days) |
High convenience, low price point, frequent visits are the norm. | Loyalty programs, mobile app ordering, personalized offers, speed of service. |
| Fast Casual |
Weekly/ Bi-weekly |
30-50% (90 days) |
Balance of convenience and quality, moderate price. | Focus on a unique experience, easy online ordering, limited-time offers, community engagement. |
| Casual Dining |
Bi-weekly/ Monthly |
25-40% (90 days) |
More occasion-based dining, higher price point. | Excellent service, special occasion promotions, email marketing, birthday rewards. |
| Fine Dining |
Monthly/ Quarterly/ Special |
15-30% (6-12 months) |
High price point, special occasion dining, longer timeframe for repeats. | Personalized service, exclusive events, impeccable ambiance, chef's tasting menus. |
| Pizza Restaurants | Weekly/ Bi-weekly |
35-55% (90 days) |
Popular, convenient, often delivery/takeout focused. | Online ordering, loyalty rewards, targeted deals, family meal bundles. |
| Coffee Shops |
Daily/ Multiple times per week |
50-70% (30 days) |
Habitual consumption, often location-based. | Loyalty app, convenient ordering, personalized greetings, comfortable atmosphere, free Wi-Fi. |
| Food Trucks/ Taco Trucks | Variable | 20-40% (3 months, location-dependent) |
Impulse purchases, location is key, building a following is essential. | Strong social media presence, location updates, unique menu items, collaborations with other businesses. |
Real-World Examples (and Why They Work):
- Starbucks: Their rewards program, Starbucks Rewards, is famous. It’s customized, like a game, and works perfectly on mobile devices. This gets crazy return business.
- Chipotle: Customers keep coming back because they focus on using fresh ingredients, making meals that fit your needs, and making online buying easy. Also, their prize system is very simple: for every dollar spent, you get one point.
- There is a cult-like following for the West Coast icon In-N-Out Burger because of its simple menu, high-quality ingredients, and reliable customer service. They do not even need an official program to thank customers! This is the power of being loyal to a brand.
Related Read: How to develop customer loyalty: A guide.
How to Measure Your Own Repeat Customer Rate
If you don’t measure it, you can’t make it better! The method is easy to understand:
If a customer came back more than once in a period, the repeat customer rate is equal to 100 times the number of customers who came back more than once in that period.
This information should be easy to find in your POS system, reward program software, or CRM. If not, you might have to dig by hand (but trust us, it’s worth it!).
Beyond the Numbers: Building True Loyalty
Numbers are important, but they don’t tell the whole story. Having a “good” rate of repeat buyers comes from getting to know your customers on a deeper level.
How to do it:
- Excellent Customer Experience: This can’t be negotiated. Customers stay loyal to a business that has great food, friendly service, and a warm environment.
- Personalization: Don’t treat your customers like numbers, but like real people. Data can be used to make deals, suggestions, and messages more relevant.
- Being consistent is key: Give people a regularly high-quality experience every time.
- Tell people what you want them to know: Use email marketing, social media, and personalized texts to stay at the top of people’s minds.
- There’s a loyalty program that doesn’t stink: Make a program that is simple to understand, gives people good rewards, and makes them feel like they are valued.
Conclusion: Stop Chasing New, Start Nurturing the Old
A good repeat customer rate is a sign of a healthy, thriving restaurant. Use the benchmarks in this post as a guide, track your own performance, and, most importantly, focus on building real relationships with your customers. Stop chasing every shiny new customer and start nurturing the ones you already have. They’re your gold mine!
Now, go forth and conquer the loyalty game!
Watch the podcast on how to leverage gift cards to create loyal customers.
Watch the podcast on YouTube where Arun AV along with Rev Ciancio talk about ‘Gift Cards & How to Turn Them Into a Profit’.
To listen on Spotify, click here
About Qubriux:
We help restaurants leverage the power of data and analytics to understand their customers on a deeper level. Imagine knowing exactly what makes your audience tick, their preferred dishes, and even their social media habits. With this knowledge, you can personalize your offerings, tailor your promotions, and tailor a loyalty program that resonate with your customers.
The result? A loyal following who not only loves your food but actively promotes your restaurant on their own social media channels.
Ready to take your restaurant’s marketing to the next level? Fill out the form below and let’s chat about how Qubriux can help you create a winning strategy that drives sales and builds lasting customer relationships.