3 Reasons to Sell Gift Cards During the Holidays
September 29, 2022
Meet customer demand and boost online sales with a gift card program that’s easy to implement, manage and track.
Gift cards are expected to have a market size of $448 billion by 2023, and data shows how powerful it can be for restaurants to add gift cards to their holiday offerings. In fact, restaurant gift cards are the #1 type of gift card sold over the holidays.
They’re popular among consumers and because gift cards create immediate cash flow for a restaurant, they also have huge benefits for the industry. Whether you offer physical or digital gift cards, they drive customer loyalty, provide a source of revenue and increase online sales.
If you’re thinking ahead to November and December (and you should be), add gift cards to your list of considerations. Enabling gift cards a few weeks before the holiday season allows your team to adjust to the new offering. It also puts your restaurant in a fantastic position to promote Black Friday or Cyber Monday gift card deals.
Curious about the merits of launching a gift card program this holiday season? Check out the three statistics below that will help you make an informed, data-driven decision.
1. 62% of consumers want a gift card
It’s great to see big demand for gift cards. Data shared by the National Restaurant Association in 2021 showed that 62% of consumers want to receive a restaurant gift card for the holidays. Listen to the stat, and give the people what they want. Gift cards keep current customers coming back and attract new customers.
Revenue numbers and purchasing behavior back up what consumers are reporting: demand for gift cards is translating into increased sales. In 2021, restaurant gift cards were up 22% compared to 2020.
The first step to meeting consumer demand is actually being in the market, so make sure you’re a piece of the pie. In order for your restaurant to have the opportunity to be included in holiday gifting, it's pivotal to offer gift cards.
2. Gift cards see an average of 123% ROI
BentoBox data shows that 44% of people will spend more than the gift card amount. When the check size is bigger than the value of the gift card, that means a restaurant has two points of cash flow: one at the purchase of the gift card and one when the gift card is used. This boost in sales at separate touchpoints keeps a consistent line of money coming in.
Overall, restaurant gift cards see an average of 123% ROI. Keep this in mind when deciding your holiday sales strategy. A September 2022 forecast from Deloitte showed that although holiday spending is expected to slow down from last year, consumers are likely to spend more on experiences again, like trips and restaurant gift cards. Year over year, gift card programs have been shown to be good investments and business strategies for restaurants.
3. Interest in digital gift cards is growing
The Paytronix Restaurant Gift Card Sales Report released in February 2022 found that e-gift sales were the highest ever in 2021. Trends for the upcoming holiday season paint a similar picture. Holiday e-commerce sales will likely grow by 12.8% to 14.3% in the 2022 season compared to last year’s growth of 8.4%.
This is insightful data — and frankly welcome news — for restaurants, especially ones who are planning to invest in a digital gift card program. The forecast also shares that, “consumer services like restaurants are anticipated to see more spending with changing pandemic trends.”
If you want to stay competitive in the industry and grow your revenue this holiday season, now is the time to ramp up a gift card program. You can sell directly on your website, generate mobile-friendly digital gift cards in seconds and track redemptions through a simple online dashboard.
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