Gift Cards: Your Venue's Silly Season Secret Weapon

5 minute read  |      

In this Article
The Business Case for Gift Cards in Hospitality
Seasonal Advantages: Why Summer Gift Card Sales Matter Year-Round
Offer Gift Cards at Your Venue using PowerEPOS or Now Book It
Takeaways: Your Gift Card Strategy Starts Now

As the festive season approaches, hospitality businesses from bustling restaurants and beachside cafés to multi-site franchises, stadiums, arenas, and large entertainment venues are searching for ways to boost revenue and strengthen customer relationships. The answer might be simpler than you think: gift cards.

Far from being just a convenient last-minute present, gift cards represent one of the most powerful tools in your hospitality business arsenal. They drive profit, build loyalty, and turn your customers into your best marketers, all while creating seamless experiences that today's consumers expect.

The Business Case for Gift Cards in Hospitality

Whether you operate a single neighbourhood café or manage a multi-site franchise operation, gift cards deliver measurable results that impact your bottom line year-round, with particular strength during peak summer trading.

Generate Immediate Revenue Without Immediate Costs

Gift cards create a unique financial advantage: you receive payment upfront before providing any service. This immediate cash injection during the Christmas period helps with cash flow management during one of your busiest trading periods. For multi-site operations and large entertainment venues, this can mean tens of thousands of dollars in advance revenue that helps with everything from inventory planning to summer staffing decisions.

Even better, industry data consistently shows that 10-20% of gift cards go unredeemed, representing pure profit for your business. Additionally, when customers do redeem their cards, they typically spend 20-40% more than the card's value, a phenomenon known as "gift card breakage" that benefits your average transaction value.

Build Customer Loyalty That Lasts Beyond the Holidays

Gift cards are loyalty builders in disguise. When someone receives a gift card to your restaurant, café, or entertainment venue, they're far more likely to visit than they would have been otherwise. For many, it becomes their first experience with your brand, and first impressions matter.

This is particularly valuable for franchise operations looking to drive traffic across multiple locations, or for restaurants and cafés seeking to boost food and beverage revenue beyond the usual. A gift card redeemed during the summer holidays can introduce a customer to your venue when they've got time to truly appreciate the experience, setting the stage for repeat visits throughout the year.

The psychology is powerful: recipients feel they're spending "free money," which often leads to a more relaxed, enjoyable experience. They're more likely to try premium items, add extras, or extend their visit, behaviours that translate into higher satisfaction and increased likelihood of becoming regular customers.

Convenient for Customers, Profitable for You

Modern consumers value convenience above almost everything else, and gift cards deliver it in spades. They're the perfect solution for time-pressed gift shoppers who want to give something thoughtful without the stress of choosing the wrong item. This convenience factor makes gift cards especially appealing during the Christmas rush when your venue is already flat out.

For your business, gift cards are equally convenient. Digital gift cards, in particular, eliminate inventory concerns, reduce waste, and can be fulfilled instantly, even at 11 PM on Christmas Eve when a desperate shopper realises they've forgotten someone on their list. This 24/7 sales potential is particularly valuable for restaurants, cafes, and multi-site operations looking to capture every possible revenue opportunity.

Turn Customers Into Your Marketing Team

Word of mouth has always been the most trusted form of marketing, and gift cards amplify it naturally. When someone purchases a gift card for your hospitality venue, they're essentially becoming a brand ambassador. They're vouching for your quality and recommending your experience to someone in their network.

This organic marketing is especially powerful for franchise operations looking to build awareness across different territories, or for entertainment venues trying to attract new demographics. Each gift card given is a personal endorsement that carries more weight than any advertisement could achieve.

The ripple effect continues when recipients redeem their cards. They often bring mates or family along, exposing even more potential customers to your brand. For restaurants and cafes, this can transform a single gift card sale into a table of new customers. For stadiums and arenas, it can mean introducing entire groups to your premium food and beverage offerings.

Increase Average Transaction Values & Frequency

Gift card holders exhibit different spending behaviours than regular customers, and these differences work in your favour. Studies consistently show that when customers pay with gift cards, they:

• Spend more than the card's face value (typically 20-40% more)
• Purchase premium items they might normally skip
• Visit more frequently, especially if they have a remaining balance
• Bring companions who make additional purchases

This creates opportunities for cross-location visits as customers explore different venues in your network. Large entertainment venues benefit when gift card holders visit outside of major events, helping to drive traffic during typically slower periods.

Seasonal Advantages: Why Summer Gift Card Sales Matter Year-Round

The Christmas and summer holiday season represents a critical window for gift card sales, but the benefits extend well beyond January. Gift cards purchased during the festive period are typically redeemed throughout the summer holidays and into autumn, helping you maintain momentum through the peak season and transition smoothly into the quieter months of February and March.

For restaurants and cafés, gift card redemptions help fill tables during the traditionally quieter period after Australia Day when many people return to work but haven't quite settled into their regular routines. Stadiums and arenas can attract visitors during non-event periods. Multi-site franchises benefit from increased traffic across their entire network as recipients decide which location to visit.

The summer timing is particularly advantageous in Australia. People are in holiday mode, spending time with family and friends, and actively seeking out dining and entertainment experiences. Gift cards purchased in December often get used during January's beach days, catch-ups with mates, and family celebrations, exactly when your venue wants to be top of mind.

Offer Gift Cards at Your Venue using PowerEPOS or Now Book It

The benefits of gift cards are clear, but implementation matters. Your customers expect seamless experiences whether they're purchasing at your location, on your website, or through their mobile device. Get up and running with gift cards via these 2 methods:

1. PowerEPOS Gift Card Manager

For hospitality businesses using PowerEPOS, the Gift Card Manager Module provides a complete solution for managing your gift card programme. This purpose-built system handles physical and digital gift cards across single or multi-site operations, making it ideal for restaurants, cafés, franchises, and entertainment venues of all sizes.

The module is a PowerEPOS add-on, ensuring seamless transactions whether customers are purchasing or redeeming cards. For multi-site operations, the system manages gift card balances across your entire network, allowing customers to purchase at one location and redeem at another, a critical feature for franchise operations and venues with multiple outlets.

Key features include detailed reporting on gift card sales and redemptions, and flexible denomination options. The system also handles partial redemptions, allowing customers to use their cards multiple times until the balance is depleted, encouraging repeat visits.

2. Now Book It Gift Cards

If your hospitality business uses our Now Book It integration, you have access to an additional gift card solution that combines gift card sales with your reservation system. This is particularly powerful for restaurants and entertainment venues where gift cards might be used for specific experiences or events.

The Now Book It integration allows customers to purchase gift cards alongside making reservations, creating a seamless booking and gifting experience. Recipients can use their gift cards when making their own reservations, adding a layer of convenience that modern consumers expect. This integrated approach is especially effective for hospitality businesses looking to drive bookings during specific periods or promote special dining experiences.

Takeaways: Your Gift Card Strategy Starts Now

As the festive season approaches, now is the time to ensure your gift card programme is ready to deliver results. Whether you're a single-location cafe or a multi-site franchise operation, whether you're filling restaurant tables or driving concession sales at your arena, gift cards offer a proven path to increased revenue, stronger customer relationships, and sustainable business growth.

The combination of immediate revenue generation, extended redemption benefits, enhanced customer loyalty, and organic word-of-mouth marketing makes gift cards one of the highest-return investments your hospitality business can make this season.

Ready to maximise your gift card potential? Contact us to learn more about PowerEPOS Gift Card Manager or the Now Book It integration, and discover how to turn this summer season into your most profitable yet.

If you're seeking a high-quality, Australian-made and supported Point of Sale solution for your hospitality or retail business, look no further than Triniteq. Our innovative technologies are designed to simplify your operations, enhance your customer experience, and make you more money. Discover our range of products and services today.

If you're new to PowerEPOS, our cloud-hybrid POS system, contact us for more info.