Restaurant Loyalty Apps: Are They Still Worth It?

Estimated Reading Time: 10 minutes

Thinking of building your own restaurant app? You’ve got this.

Loyalty apps are everywhere these days and they all promise the same thing: more loyal customers, sales, and a brand that practically markets itself.

But here’s the real question restaurant owners are quietly asking over their fourth espresso of the day:

“Are restaurant loyalty apps really worth it in 2025?”

Sure, they scream sophistication. But with rising development costs, sky-high uninstall rates, and an endless list of better digital alternatives that don’t cost more than your kid’s college tuition, it’s worth digging into whether launching a custom app is the best way to build restaurant loyalty. Or if it’s just a flashy and costly distraction. Nearly 47% of apps are uninstalled within 30 days. That means by the time you’re celebrating your app launch, half your users may have already ghosted you.

So, let’s break it down. Real case studies. Real costs. Real talk.

What Are Restaurant Loyalty Apps?

And why are they so popular?

A restaurant loyalty app is a branded mobile app that allows your customers to sign up, earn points, and unlock rewards all from their phones. It replaces traditional punch cards and gives you more control over how you reward repeat visits.

Here’s why they’ve become so popular:

• Convenience for customers: Everything is trackable and sometimes gamified.
• Data for the brand: You collect names, birthdays, preferences, and even spend history.
• Marketing potential: You can send push notifications about new menu items or “Buy 1, Free 1” promotions.

Sounds pretty cool, right?

Well, only if the app actually gets used. Because in today’s saturated app market, convincing someone to download and keep your restaurant app is no easy feat.

Spoiler alert: Most don’t.

In fact, the average uninstall rate is a whopping 46.9%. This means that almost half of your users could disappear by the end of the week before your loyalty app even gets off the ground. So, let’s look at how real brands approached this, and whether their investment paid off.

What happens when a real restaurant gives loyalty apps a shot?

Restaurant Loyalty App Case Studies

MyBurgerLab

MyBurgerLab, a well-known burger chain in Malaysia, launched its loyalty app using ShopperTise’s platform. Rather than going full custom, they kept things streamlined and simple.

MyBurgerLab+ App (Image retrieved from App Store)

The result? Over 20,000 downloads, achieved mostly through in-store promos and good ol’ word of mouth. No big-budget launch campaign. No influencer overload. No heavy paid marketing. The app allowed customers to collect points and unlock rewards, all while staying inside the MyBurgerLab ecosystem.

But here’s the thing: even with a modest setup, keeping users engaged is no small feat. Like most restaurant apps, it likely faces the same challenge—after the free fries, do people stick around? A loyalty app only delivers ROI (return on investment) if it becomes part of the customer’s regular routine, not just something they downloaded once and have forgotten after.

The Social

Now, let’s take a look at the The Social, a popular restaurant-bar chain with multiple outlets across Malaysia. Developed by Tsunago, their loyalty program took the custom app route. Think fancy interface, member exclusives, and a big marketing push to drive downloads.

The Social Rewards App (Image retrieved from App Store)

This is where it gets interesting.

Much of the traction of the app downloads came from paid campaigns and sign-up promos. The loyalty dilemma? Once the promo ends, does the love last? Custom apps are costly to build and maintain, and the average uninstall rate for apps across industries is a hefty 46.9% just within 30 days. That means even the best-designed loyalty app might become a digital deadweight before it drives real customer lifetime value.

Unless you’ve got a high-margin, repeat-visit model (or customers who love your cocktails enough to download and remember a password), a loyalty app like this can feel more “flashy launch” than long-term strategy.

Retail Loyalty App Case Studies

What happens when retailers with hundreds of stores try loyalty apps? Let’s pivot to see how it works for retail stores.

In a deep-dive analysis, we get a behind-the-scenes look at how major retailers in Malaysia specifically, approached their loyalty apps. And what they actually cost.

Caring Pharmacy

Caring Pharmacy, one of Malaysia’s top health and wellness chains, launched its loyalty app back in 2017. Fast forward to today, and the app has seen over 500,000 downloads on the Google Play Store alone—not too shabby for a brand that sells supplements.

Caring Membership App (Image retrieved from App Store)

The app gives users access to e-vouchers, birthday rewards, and membership points that can be used in-store and online. And that’s the keyword here: online.

The app isn’t just about loyalty; it functions as an eCommerce and promotional hub, making it worth keeping on your phone.

Customers don’t need to visit a physical outlet to benefit. They can just reorder essentials or stock up on vitamins while watching Netflix. That kind of utility makes app retention more likely. In retail, the value is ongoing. In restaurants, unless you’re open 24/7 or constantly updating your menu with hype drops, most people just won’t keep your app around for long.

Watsons

If Caring’s loyalty app was a quiet achiever, Watsons Malaysia went full glam. With millions of downloads globally and a sleek user interface, the Watsons app is a retail beast—all complete with online shopping, vouchers, and exclusive member pricing.

Watsons MY App (Image retrieved from App Store)

To drive adoption, Watsons even gave out RM15 – RM20 with sign-up vouchers. This worked like a charm because who doesn’t love free stuff, especially when it comes with a cart full of face masks and shampoo. The app becomes part of their shopping routine, especially since users can shop from their phones anytime, anywhere.

But here’s the key difference: Watsons isn’t relying on foot traffic alone.

They’ve built an entire omnichannel experience. Users earn points whether they shop online or in-store. Restaurants, however, would require the customer to show up physically, eat, and remember to scan something.

The bottom line is, unless you’re Watsons or Uniqlo, you’ll struggle to see ROI from app campaigns this massive.

Retail Apps vs Restaurant Apps: A Comparison

At first glance, launching a loyalty app seems like a smart move for any business. But what works beautifully for retail often falls flat in F&B.

Retail loyalty apps work because customers can shop anytime they choose too. Midnight skincare spree? Sephora’s got you. Spontaneous sock haul? Hello, Uniqlo. These apps are integrated with eCommerce platforms, allowing customers to browse, buy, and earn rewards without leaving their beds. They’re convenient and don’t require much commitment.

But restaurants? A whole different story.

Food is immediate. Hungry customers want food now, not later. They’re not browsing burger menus at midnight (unless you’re McDonald’s). Most restaurants can’t compete with that kind of always-on convenience, and that makes app retention much harder. Plus, retail purchases can happen in-app, all while laying in bed. But you can’t eat a burger through an app. Restaurants rely more on foot traffic, impulse visits, or delivery orders (all of which might not require a dedicated app).

So before you follow in the footsteps of big-name retailers, ask yourself:

Do your customers need another app?

Or do they just want good food, quick service, and a reward they can claim without jumping through the hoops?

Most Common User Issues with Restaurant Loyalty Apps

We dug into real user reviews for restaurant loyalty apps like Inside Scoop and MyBurgerLab to see what’s actually frustrating people. Spoiler: it’s not the food—it’s the app.

Here’s a breakdown of the most common issues customers face:

Some of these are technical, others are just frustrating UX—but all of them affect retention. If your loyalty app is buggy, slow, or confusing, don’t be surprised when customers delete it without a second thought.

So, before investing thousands into an app, make sure it’s not just functional—but frictionless.

When is a Restaurant Loyalty App Worth It?

An app can make sense if:

• You have multiple outlets or franchise locations
• You offer tiered or gamified rewards
• You push seasonal campaigns or member exclusives
• You have a team to maintain and promote it long-term

Think Starbucks and McDonald’s. These apps are backed by teams and tech infrastructure. They’re ecosystems, not just sad punch cards. If your team is just you and a part-timer Ali, don’t worry. There are better ways to go about this.

All this sounds like a lot—because it is. But if your loyalty apps aren’t your best bet, what is?

Better Alternatives to a Loyalty App (That Actually Work)

You don’t need to sink thousands into an app to run a killer loyalty program. Here are four smarter, more scalable options you could try out:

1. Independent Loyalty Vendor

Not ready to build an app but still want something powerful? Consider working with an independent loyalty vendor like SimpleLoyalty. This platform helps you launch your dream loyalty program that will actually get used, without spending a fortune on development.

2. POS-Integrated Loyalty

Already have a POS system in place? A well-designed loyalty program can integrate with leading POS tools so you’re able to track purchases, apply rewards, and sync customer data automatically. Seamless and staff-friendly.

3. WhatsApp Loyalty

WhatsApp is already on your customers’ phones. Use it to automate rewards, track visits, and send promos directly where they’ll be read.

Conclusion

If you’re a large restaurant chain or retail brand with the time, budget, and marketing machine to support a loyalty app, by all means—go for it. However, if you’re a growing restaurant with tight margins and lean marketing resources, you’re way better off with simpler solutions.

The better bet is a loyalty program that meets your customers where they already are.

That’s where SimpleLoyalty comes in.

Brands like Nestle, TGI Friday’s, and over 300 others are using it to drive real retention without development delays, coding headaches, or sky-high costs.

Want a loyalty program that works without draining your wallet?

Check out SimpleLoyalty to see how it’s helping F&B brands build smarter and more flexible loyalty programs with no app required.