Customer experience management platform provider Paytronix released its annual restaurant gift card sales report which found gift card sales decreased in 2020. They fell 31.8 percent in 2020 compared to 2019, although physical in-store ticket sales fell the least, according to a press release on Wednesday (February 3).
Compared to 2019, in-store ticket sales decreased by less than 20 percent, while tickets sold through third-party sales decreased by 45.7 percent compared to the previous year. In addition, tickets sold through corporate channels were down 36.5 percent.
“In-store sales saw the smallest drop in the number of cards sold between 2019 and 2020, which we attribute to some brands that offer successful promotional offers such as 10 percent off or loyalty card offers that were not available from third-party providers. ” Lee Barnes, Head of Data Insights, Paytronix, said in the announcement.
Significantly fewer gift cards were sold in May and June 2020 than in 2019 and 2018. Since a number of restaurants have only just reopened to dine on-site after the government-ordered closings came into effect in March, the annual “Mothers” became “Fathers and Graduates” proved to be a challenge for the catering industry.
Also, gift cards were redeemed faster in the first 11 weeks after purchase in 2020 compared to 2019 and 2018. After that 11 week limit, cards sold in 2020 were less likely to be redeemed than cards sold in 2018 or 2019.
QSRs nearly hit their 2019 sales, realizing over 96 percent of the cards sold that year. In addition, the average eGift card loading amount for a QSR in 2020 was more than double the average loading amount for a physical gift card.
“The executives in the catering industry are among the most creative and innovative in the business world. So we can bet we will see a big rebound in 2021. We’re also seeing the demand for convenience, which will impact e-gift, physical gift cards and loyalty programs combined with stored value as restaurants start leveraging the single platform to drive traffic. ” Michelle Tempesta, Product and Marketing Director of Paytronix, said in the announcement.
A previous Paytronix report specified that November and December Christmas sales accounted for 45.8 percent of all restaurant gift card sales in 2020 and approximately 48.6 percent of total gift card spending. The company said the result was in line with the past three years, when Christmas sales averaged 46.3 percent of all annual gift card sales.
Research emerges at a time when loyalty programs evolving as online commerce becomes dominant and consumers look for the best value for money. “Restaurant customers want to earn loyalty and reward points with the same ease as they browse menu options, order food, and have it delivered or picked up,” says the latest. by PYMNTS Delivery of restaurant rewards report, a Paytronix Cooperation.