Evolving Role of AI and Gamification in Restaurant Loyalty Programming

This paper is part one of a two-part series on artificial intelligence and gamification in restaurant loyalty programs. Artificial intelligence (AI) is featured in this article as it supports loyalty. platforms capable of analyzing customer behavior, forecasting buying preferences, and creating personalized rewards. Essentially, AI-driven insights can tailor promotions, optimize pricing, and improve customer retention by turning experiential data into behavioral predictions, smart incentives, and ultimately return visits. AI-driven loyalty programs have been shown to significantly influence customer spending and visits by making rewards more personalized and engaging. Research from multiple sources indicates that restaurants that excel in customer personalization often generate forty percent more revenue than alternate approaches.

The loyalty landscape is undergoing a major transformation as illustrated by Square.com redefining a restaurant loyalty program as a customer retention strategy that rewards members for interacting with the brand. As operators move away from traditional points-for-purchase loyalty models toward more holistic, experience-driven programming they are likely to apply artificial intelligence (AI). Customers appear to be drawn by personalization, emotional connection, and rewards reflecting personal values. Loyalty is expressed by how well brands can integrate seamlessly into diners’ activities using real-time data and AI principles that create meaningful interactions. As foodservice competition intensifies, loyalty programming has shifted from a marketing add-on to a core component of brand strategy that focuses on long-term relationships; not just repeat visits.

According to the 2025 joint report from Nation’s Restaurant News and Restaurant Business entitled Loyalty and Customer Experience, operators are seeking a path to growth by strengthening customer engagement via innovative strategies. The report concludes operators have two simplistic objectives: 1. getting customers to make a purchase and 2. getting customers to return. Surveyed operators believe this can be accomplished by a mix of targeted marketing, product value, and service quality. AI applications aimed at increasing customer visits, improving average check, and developing potential brand ambassadors can be critically important. In other words, AI is rewriting the rules of relationship between restaurants and customers.

Read the full white paper on your member dashboard