Why Holiday Gift Cards Are Especially Powerful for Restaurants
According to the latest Paytronix Gift Card Trend Report, overall revenue from restaurant gift-card sales rose about 4 % year-over-year, even though the average load per card dropped. GlobeNewswire
Digital gift cards are surging: the number sold grew by 7 % in 2023 and now make up about 34 % of the total gift-card market, making digital the fastest-growing segment. Paytronix+1
Holiday months remain the sweet spot: the period around Thanksgiving to Christmas accounts for roughly 45 % of all annual restaurant gift-card sales. Restaurant Dive+1
According to a survey from the National Restaurant Association (NRA), 59% of adults plan to give restaurant gift cards this holiday season — and that number is even higher among younger donors (Gen Z and Millennials). NRA
Bottom line: Holiday season isn’t just a good time — it’s often the best time of year to push gift cards.
The Hidden Profit: Why Gift Cards Are a Win for Restaurants Beyond the Obvious
Gift cards bring more benefits than just pre-selling meals — they unlock deeper value for your business:
Upfront cash flow: When customers buy gift cards, you get the money immediately. That’s money in hand now — which is especially helpful during a busy season or to cover upcoming costs (inventory, staffing, etc.).
Breakage / unredeemed value = extra profit: Some gift cards never get redeemed (or only partially redeemed). That unredeemed balance — often called “breakage” — ends up as profit, since you’ve already collected the cash but don’t have to deliver food or service. While exact “breakage” percentages vary, industry reports frequently cite this as a meaningful advantage. Restaurant Dive+2Restaurant Dive+2
Overspend & upsells when redeemed: Even when gift cards are redeemed, customers often spend more than the card’s value — ordering extra appetizers, drinks, desserts, or tipping generously. That drives higher average check sizes. Restaurant Dive+2Restaurant Dive+2
New & repeat customers: Gift cards often go to friends or family who haven’t been to your restaurant before — giving you an opportunity to acquire new regulars. And once they visit, you have a chance to impress them so they return again. Restaurant Dive+1
Smoothing cash flow during slow months: By selling now (holiday season) and having redemption spread out over future months, you effectively pre-sell future meals — useful to bridge slower periods post-holidays.
Smart Holiday Gift Card Strategies: How to Stack the Deck in Your Favour
Here are some tested strategies + creative ideas you can implement — or adapt — to maximize gift-card success.
1. Offer “Deferred Bonus Cards” (e.g. extra card redeemable in new year)
Example: Offer “Buy $100 in gift cards, get $20 bonus card — redeemable starting Jan 1.”
This encourages holiday-season purchase while stacking value toward a New Year return.
Indeed, some large restaurant chains have run similar promos: for instance, one chain offered a bonus card ($15) for every $50 purchased online — with bonus redemption beginning after the holidays. Restaurant Dive+1
This helps convert holiday-season cash into early-year bookings, giving your restaurant a strong start when traffic might otherwise dip.
Pro tip: Communicate clearly — specify when the bonus becomes valid (e.g., “redeemable Jan 1 – Feb 28”) to boost return visits.
2. Push for Corporate / Group Gifting (Bigger-Ticket Gift Cards: $500, $1,000, $2,000, etc.)
Holiday season isn’t just about friends and family — many businesses, organizations or teams give group gifts, employee bonuses, or client/employee rewards. Target these buyers by offering larger-denomination cards or “bulk buys.”
A few high-value card sales can add up fast, and a corporate group gift card works like a “group dining budget,” convenient for employers or companies giving meals/bonuses to staff or clients.
For your restaurant, this means a big infusion of cash at once — which can help operations, bulk ingredient buying, or support renovations, staffing, and overhead during leaner months.
Pro tip: Create a “Corporate Gift Card Package” — e.g., a bundle of ten $100 cards with a small bonus or discount — advertised on your website, social media, or via direct outreach to local businesses.
3. Focus on Marketing the Convenience & Flexibility of Gift Cards
Many gift-card buyers are less concerned with “the perfect present” and more with convenience. Remind customers that:
Gift cards eliminate the guesswork — recipients can choose when to dine, what to order, and personalize their experience.
They work for a broad set of gift recipients: families, employees, longtime customers, etc. As the National Restaurant Association survey found — for 59 % of adults, restaurants are on their holiday-gift list. NRA
For corporate buyers, gift cards offer simplicity: no individual reimbursements or complicated holiday bonuses — just one bulk purchase.
Use you marketing channels: social media, email newsletters, point-of-sale prompts, and in-restaurant signage.
4. Offer Both Digital & Physical Gift Cards — Make It Easy for All Buyer Types
According to Paytronix, digital gift cards grew 7 % in 2023, becoming the fastest-growing segment. GlobeNewswire+1
Digital cards are perfect for last-minute shoppers, out-of-town customers, or anyone who prefers convenience.
Physical cards, however, still matter — especially for walk-in customers and those who want a “real gift” to wrap or hand out.
Pro tip: Give customers both options. Ensure your website/app supports digital card purchases and make physical cards easily available in-store.
Real-World Example Ideas (Promo Campaigns You Could Run)
“Holiday Gifting + Bonus” campaign: Between Thanksgiving and December 31 — offer “Buy $100 in gift cards, get a $20 bonus card redeemable Jan–Feb.”
Corporate bundle packages: Example: “Buy 10 × $100 cards at once, get 5% off total or a free bonus card.” Market directly to local businesses as “Holiday staff / client meal passes.”
Digital-first promos: Use Cyber Monday (or the week after Thanksgiving) to promote digital gift card sales — perfect for distant relatives, friends, or last-minute gift buyers.
Upsell at point-of-sale: Have hosts or servers ask customers at checkout: “Want to pick up a gift card for the holidays? They make great gifts.” (Often people buy when reminded.)
Why This Holiday Gift-Card Push Should Matter to You (Especially Restaurant Owners & Operators)
You get cash up-front — which can help cover holiday staffing, inventory, or remodels before you actually deliver.
Some gift cards (or part of them) may never be redeemed — creating extra profit from money already received.
Redeemed cards often lead to overspend and upsells, increasing check size and overall revenue per visit.
Gift cards help you acquire new and repeat customers — people who get cards may come once, then come back again.
You turn holiday gift-giving season — typically high competition and discount fatigue — into a strategic opportunity for cash flow, marketing, and customer acquisition.
A Few Cautions / What to Watch Out For
Accounting & liability: Gift-card sales create a liability on your books until redeemed. You’ll need good tracking and accounting practices.
Clear terms & transparency: If you offer bonus cards or delayed redemption, clearly communicate the details to avoid confusion or customer frustration.
Avoid excessive discounting: While bonuses can drive sales, deep discounts on cards (e.g. 30–50 %) can eat into margins — especially if overspend or redemption rates are lower than expected.
Balance digital and physical demand: Over-relying on digital cards might exclude customers who prefer physical cards (older demographics, walk-ins).
For restaurant owners and operators, the holiday season isn’t just about serving more meals — it’s a golden opportunity to turn “gift-giving” into sustainable cash flow, new customers, and higher long-term profitability. With a smart gift-card push (holiday bonuses, corporate bundles, digital + physical, clear marketing), you can convert holiday generosity not just into immediate revenue — but into loyalty, larger check sizes, and repeat visits.