Gift cards have long been a favorite option for holiday shopping, birthdays, and special occasions. However, beyond being a convenient gift, they also offer significant benefits to restaurants looking to increase their revenue and attract new customers. According to a study by the UK’s Gift Card & Voucher Association (GCVA) and Global Data, two out of three consumers spend nearly 43% more than the value of their gift card when redeeming it. This behavior has major implications for restaurant owners looking to boost their sales, customer loyalty, and overall business growth. 

The Power of the Gift Card in Driving Sales 

The GCVA’s study revealed that consumers typically spend an average of 43% more than the value of the gift card when they visit a restaurant to redeem it. This overspending is a powerful factor for restaurant owners, as it translates directly into additional sales. 

For example, imagine a customer who receives a $50 gift card. The consumer, excited to dine, may end up spending $70 or $80 during their visit. In this case, the restaurant gains an extra $20 or $30 in revenue beyond the gift card value, significantly boosting the sale from what would have been a simple redemption. 

Let’s break down the numbers: 

This extra $20 represents additional sales that the restaurant would not have captured without the gift card. As this behavior is common among gift card users, the cumulative effect can have a major impact on the restaurant's bottom line. 

Attracting New Customers 

Gift cards also play a crucial role in attracting new customers. When a customer buys a gift card for a friend or family member, it introduces the recipient to the restaurant. Many recipients of gift cards may not have visited the restaurant before, and they often return in the future if they have a positive experience. 

For example, if a restaurant sells 2,500 gift cards at $50 each, it generates $125,000 in upfront revenue. When recipients redeem these cards, they tend to overspend by 43%. That translates to an additional $53,750 in sales, bringing the total customer spend to $178,750. Not only does this strategy bring in immediate revenue and introduce new diners who may not have otherwise visited, but it also creates opportunities for repeat business and brand loyalty from these new guests. Gift cards are more than just sales; they’re a strategic marketing tool that drives both revenue and future growth. 

Additionally, restaurants can leverage this opportunity by encouraging customers to purchase gift cards for holidays, birthdays, or as a thank-you gesture. By promoting gift cards in-store and online, restaurants can ensure they capture both their loyal customers and a new audience who may become repeat patrons.