In the fast-paced world of quick-service restaurants (QSRs), word-of-mouth marketing is more powerful than ever. With over 84.8 million adults consuming fast food on a given day (CNN), the opportunity for referrals is enormous. Referral programs do more than just attract new customers – they build brand buzz, drive loyalty, and keep existing fans engaged.
For QSRs looking to stay competitive, referrals are a natural fit. By encouraging customers to invite friends for a meal, restaurants can boost their reach, drive up sales, and give customers an incentive to return. In this article, we’ll explore how referral programs are transforming QSR marketing, why they’re essential for growth, and look at examples from top brands that are leading the way with referral strategies that work.
QSRs face unique challenges in building customer loyalty and standing out in a saturated market where diners have countless options at their fingertips. Traditional advertising isn’t always enough in this environment – customers today are often more inclined to trust recommendations from friends and family than a flashy ad campaign. In fact, 92% of consumers trust these personal recommendations above other forms of advertising (Nielsen), and word of mouth influences between 20% and 50% of all purchasing decisions (McKinsey). For QSRs, that’s a huge untapped potential.
Referrals give QSRs a way to reach new customers while nurturing relationships with existing fans. Referred customers don’t just try a brand; they often stick around – with 30% higher conversion rates, 16% higher lifetime value, and 37% better retention than those acquired through other channels (Finances Online).
But referral programs don’t just bring in new business; they also address several core challenges in the QSR industry, helping brands build stronger customer connections and keep diners engaged.
Learn more: Referral Marketing 101 – The Basics of Creating a Successful Referral Program
This is one of the most popular models for QSRs, offering incentives for both the referrer and the referred customer. For example, the existing customer might earn a free side or drink, while the new customer receives a discount or a free item on their first order. Double-sided rewards create immediate value on both sides, increasing the likelihood that customers will participate and bring friends. This model works well for QSRs that aim to boost acquisition and customer loyalty simultaneously.
In a single-sided program, only the existing customer receives a reward for bringing in a friend. This can be ideal for brands looking to thank and reward their current customers without needing to discount for new customers. It’s a simpler approach and is often easier to manage, making it a great option for smaller QSRs or those just starting with referral programs.
For QSRs with a strong base of loyal customers, a tiered system can add an element of gamification, where customers unlock bigger rewards based on the number of successful referrals they make. For example, a diner might earn a small reward after their first referral but unlock more significant discounts, exclusive menu items, or VIP experiences with more referrals. Tiered programs can build ongoing engagement by encouraging diners to keep referring friends to reach the next level of rewards.
For QSRs that already have a loyalty program in place, generating referral codes and adding referral rewards as part of the loyalty points structure can be an effective way to enhance engagement. Customers who refer friends can earn additional loyalty points, pushing them closer to redemption milestones or exclusive perks. This approach aligns referral rewards with existing loyalty strategies, making it easy for customers to understand and participate.
Learn more: Referral Program with Loyalty Points as Reward
Unlike fine dining, QSR rewards need to be easy to redeem, instantly satisfying, and tailored to the fast-food experience. Here’s a look at QSR-friendly reward options that go beyond discounts to create real value:
Remember – tailoring rewards to customer preferences or ordering history can make your program even more appealing. For example, if a customer frequently orders plant-based items, you could offer them a free veggie burger for referring a friend. Personalized rewards add a meaningful touch that enhances engagement and shows customers you know what they love.
Learn more: How Personalized Incentives Build up Customer Loyalty?
By offering a mix of these rewards, tailored to the QSR environment, your referral program can boost traffic, drive repeat visits, and turn satisfied customers into loyal advocates.
Domino’s knows that nothing beats a recommendation from a friend, so they’ve made it easier than ever to bring people together over pizza with their refer a friend program.
Here’s how it works: when an existing customer shares their unique referral code, their friend gets 50% off their first order. In return, the referrer also scores a 50% discount on their next purchase.
The discount applies only to food items (excluding drinks and "Create Your Own" options), keeping it manageable while offering value. By limiting redemptions to online and app orders, Domino’s boosts app engagement and simplifies tracking. There’s no limitations on the number of referrals – each successful one generates a new discount code, easily accessible under "Coupons." This approach drives repeat visits, promotes digital orders, and builds loyalty with each new discount.
Starbucks Indonesia is also keeping pace with a rewarding referral program. By sharing a referral code, existing members can invite friends to join Starbucks Rewards, unlocking discounts for both parties. A few taps in the app enable members to share their code, while new members can join and save with a simple sign-up process.
Existing members can easily locate and share their referral code in the app under "Profile." New users simply enter this code during registration, enjoying an instant discount on their first purchase – making it easy to save and savor Starbucks together.
The Tims Mastercard is a rewards-based card from Tim Hortons Financial that’s designed to let fans of the brand earn points on everyday purchases. Each time cardholders spend money – whether on coffee, groceries, or gas – they accumulate Tims Rewards Points, which can be redeemed for Tim Hortons menu items.
The restaurant has also launched a referral program for its Tims Mastercard, allowing current cardholders to share their love for the brand by inviting friends and family to apply for the card. Here’s how it works:
This referral program not only rewards current Tims Mastercard users but also helps build a wider community of loyal customers who benefit from the card’s rewards.
Referrals aren’t just for customers – they can be powerful tools for building a strong, loyal QSR workforce too. Chipotle Mexican Grill’s employee referral program is a great example of this. By offering monetary incentives to team members who refer qualified candidates, Chipotle taps into the networks of its own employees to help recruit talent that’s a good cultural fit.
By offering financial incentives, Chipotle encourages employees to tap into their own networks, making recruitment a shared effort and supporting the company’s ambitious goal of hiring 20,000 new team members to meet rising demand. This referral program doesn’t just help with staffing – it’s about building a team that feels connected and invested in Chipotle’s growth.
By using a CDP or a CRM system, you can align referral incentives with customer profiles, enhancing the program’s appeal. For instance, high-frequency diners might respond well to personalized service touches or exclusive event invitations and value-seekers may prefer traditional loyalty points or discounts. Segmenting customers in this way allows you to deploy rewards that genuinely resonate with each group.
Learn more: Maximizing Customer Loyalty with CDP-Powered Incentives
Unfortunately, referral fraud is one of the most common types of fraud, making up 21% of all attacks in e-commerce, according to Statista. Fraudulent referrals can significantly increase costs and undermine the program's value. Using reliable promotional software with built-in security features – such as code validity checks, validation rules, and fraud detection – can help protect your program. Enforcing one-time-use codes or limiting claims per user are additional steps that maintain integrity and ensure that referrals are genuine.
Learn more: How to Combat Referral Abuse and Fraud in 2024?
Carefully balance enticing rewards with sustainable cost. Tiered rewards, offering smaller incentives initially and higher-value perks as referrals accumulate, control costs and encourage ongoing participation. Opt for high-margin items as rewards to keep costs in check without sacrificing appeal.
Set redemption rules, such as expiration dates and limits on how frequently rewards can be claimed, to drive engagement without overextending costs. For example, setting a 30-day expiration period on referral rewards can help drive immediate foot traffic while maintaining a sense of urgency.
Integrate analytics to understand which offers drive the most referrals and where loyalty is strongest. Insights from referral data can guide decisions on which incentives resonate best and reveal top referrers, enabling more targeted and effective campaigns. Dynamic dashboards make it easier to adjust strategies in real-time.
Learn more: How to Optimize Referral Programs with Better Referral Tracking and Distribution?
An unbothered referral experience across digital and in-person channels encourages participation. Make referral links shareable via apps, QR codes at kiosks, or personalized links on social media. Testing each referral pathway helps ensure a hassle-free experience, regardless of how customers engage with your brand.
Learn more: Omnichannel Referrals: How to Create a Seamless Referral Experience
Effective referral programs evolve. So, continuously test different types of incentives, messaging strategies, and delivery methods to gauge customer response and fine-tune the program. Regular iteration based on data insights helps keep the program fresh and maximizes long-term customer satisfaction and engagement.
Creating a customized, omnichannel referral marketing strategy is simpler with the right software. Voucherify referral system empowers fast food brands to efficiently build, monitor, and optimize referral programs for impactful results. With an API-first design, it seamlessly connects referral programs across all touchpoints (POS systems, mobile apps, and e-commerce platforms), ensuring accurate, real-time tracking.
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