Dive Brief:
- Restaurant gift card purchases were up 13.2% on Black Friday and 17.7% over Thanksgiving weekend compared to the same time in 2023 in terms of dollars spent per card, according to data from Paytronix. The company added that gift card sales on Cyber Monday were flat.
- During the four-day weekend, consumers spent 10% more on gift cards and the total number of gift cards purchased rose 6% versus the year-ago period. Total gift restaurant gift card purchases were $17.5 million compared to $15.8 million in 2023.
- Gift card sales have continually increased in the past few years. This trend represents another way for restaurants to boost sales and frequency.
Dive Insight:
Consumers typically spend more than their gift card amount when they visit, providing restaurants an opportunity to encourage spend and frequency among customers. The National Restaurant Association said the U.S. market for gift cards of all types could reach $324.5 billion this year, with about 52% of consumers typically buying gift cards for restaurants.
Compared to last year, consumers spent $7.8 million on in-store cards, and $7.3 million on digital cards, per Paytronix. In 2023, digital card purchases outpaced in-store card purchases, which were down 2.6%.
“With gift card sales surging as much as two weeks before the holiday weekend, it appears that brands front-loaded their gift card offers earlier in order to take full advantage of shopping traffic both on Black Friday and over the Thanksgiving weekend,” said Lee Barnes, chief data officer and chief of staff at Paytronix.
Even more encouraging is that consumers spent $12.3 million on gift cards for full-service restaurants and $5.2 million on QSR gift cards. Consumers averaged a $66 spend for full-service cards and $31 for QSR cards.
“Paytronix data also indicates a renewed, post-Covid enthusiasm for in-person dining experiences with FSR sales outstripping QSR sales,” Barnes said.
To capitalize on this opportunity, the NRA said restaurants should offer additional value and sell both physical and digital cards to encourage spending. The Cheesecake Factory promoted gift cards beginning Nov. 14 and gave a $15 bonus card for every $50 worth of gift cards purchased online, for example. The association also recommended that chains give consumers choices beyond menu items. That could include options like tasting menus, chef’s demos and wine tasting events.
Paytronix analyzed gift card sales from Nov. 29 through Dec. 2 from full-service and quick-service restaurants. Its 2024 data includes 366 brands compared to 351 brands in 2023.
