How QSR Referral Programs Help Bring New Customers?

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.

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Why do QSR restaurants need a referral program?

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.

• Boosting foot traffic during peak times: Referral programs can help bring in the crowds right when you need them most. Time-limited referral rewards get diners excited to swing by during busy periods, helping restaurants manage flow and make the most of high-traffic hours.
• Building a community of regulars: A well-crafted referral program can do more than drive visits; it builds a sense of brand affinity by fostering customer communities. By rewarding diners for inviting friends, QSRs can turn one-time visitors into regulars who feel like they’re part of something special.
• Driving repeat business: When referral rewards are accessible and easy to redeem, customers are motivated to come back more often. The result? A steady stream of repeat visits that keeps your restaurant top of mind and customers coming back for more.
• Gaining insights to fuel targeted marketing: Referral data offers insights into customer preferences and behaviors, helping QSRs pinpoint the incentives that drive loyalty, making future campaigns even more effective.

Learn more: Referral Marketing 101 – The Basics of Creating a Successful Referral Program

Most popular types of referral programs for quick service restaurants

1. Double-sided rewards

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.

2. Single-sided rewards

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.

3. Tiered rewards

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.

4. Loyalty integration

For QSRs that already have a loyalty program in place, 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

What type of QSR referral rewards can you offer?

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:

• Free menu items: Offering a popular item for free – like a burger, fries, or drink – is a quick win for both referrers and new customers. Free items introduce new diners to popular menu offerings and encourage future visits.
• Combo and BOGO offers: Combo meals and buy-one-get-one-free deals encourage larger orders and group visits, perfect for boosting ticket size and repeat business.
• Discounts on future orders: A percentage discount on the next order is an easy-to-redeem incentive. Adding a time-sensitive element, like “10% off if redeemed within 7 days,” can help drive foot traffic during slower periods.
• Exclusive offers: Limited-time or exclusive menu items give referrers and new customers something exciting to come back for. Access to exclusive items can be particularly effective for QSRs rolling out seasonal options.
• Gift cards: A small gift card or credit toward a future purchase encourages repeat visits and gives customers flexibility in how they redeem rewards.
• Milestone rewards: Celebrate customers reaching certain referral milestones with unique rewards like branded merchandise or discounts. Milestone rewards encourage long-term engagement and help reinforce loyalty.
• LTOs and early access: Offering early access to new menu items or limited-time offers creates a sense of exclusivity, encouraging brand loyalty and keeping customers excited about what’s next.

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.

Examples of popular QSR referral programs

1. Domino’s Norway Recruit a Friend Program

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.

2. Starbucks’ Indonesia Refer a Friend Initiative

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.

• Reward amount: Both referrer and referred friend receive a discount of IDR 25,000.
• Reward activation: The discount is added to both accounts once the referral code is used at sign-up.
• Redemption conditions: Requires a minimum spend of IDR 50,000 (before discount) in a single transaction.
• Validity: Rewards are valid for 7 days.
• Restrictions: Valid only on regular-priced items; cannot be used for Starbucks Card top-ups or combined with other promos.

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.

3. Tim Hortons' Tims Mastercard and Referral Program

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:

• Mutual rewards: Both referrer and friend earn a $20 digital Tims Gift Card upon successful application and setup of the Tims Mastercard, redeemable instantly at Tim Hortons.
• Easy sharing: Cardholders can share their referral code via text, email, or other channels directly from the Tim Hortons app.
• Referral limit: Cardholders can refer up to 50 friends, with a potential to earn up to $1,000 in Tims Gift Cards.
• Effective tracking: The app lets users monitor their referral status and rewards, integrating smoothly with Tim Hortons’ digital offerings.

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.

4. Chipotle’s Employee Referral Bonuses

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.

• Crew members: Employees who refer a candidate for a crew member position receive a $200 bonus upon the successful hiring and onboarding of the referred individual.
• Apprentices or general managers: For referrals leading to the hiring of an apprentice or general manager, the referring employee is awarded a $750 bonus.

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. 

Best practices for establishing a successful referral program

1. Tailor rewards to customer behavior

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 

2. Strengthen security against referral fraud

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?

3. Develop a reward structure that aligns with profitability goals

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.

4. Establish clear guidelines for reward redemption

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.

5. Use analytics for optimization

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?

6. Ensure an omnichannel referral experience

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.

How Voucherify can help you build the perfect referral program for your fast food business?

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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