Apr 29, 2025
Welcome back to another edition of Served., where we explore ideas shaping the future of foodservice. This week, we’re diving into a core ingredient of sustainable growth in contract catering: loyalty. Toby Bonnett sat down with George Gee (CLMP™) - widely known as The Loyalty Man - to unpack what truly drives customer loyalty, what most schemes get wrong, and how contract caterers can unlock meaningful, measurable engagement.
What Loyalty Really Means
“Loyalty is when someone makes a conscious decision to use your brand over someone else’s.” - George Gee
Contrary to popular belief, loyalty isn’t just about repeat purchases - it’s about preference. In contract catering, this gets even trickier. While audiences are technically “captive,” diners still make daily choices: pack lunch, head out, or stay and eat in-house. Loyalty becomes the catalyst that nudges them toward the third option.
The Four Levels of Loyalty
George breaks loyalty into four distinct tiers:
Behavioral Loyalty Customers default to you out of habit. It’s convenient, but fragile - competition can snap them away.
Transactional Loyalty Driven by discounts or incentives. Effective, but vulnerable to price wars.
Engagement Loyalty Customers actively participate: they join programs, follow you on social, provide feedback, and refer friends.
Emotional Loyalty The holy grail. Think Apple or Harley Davidson. Customers love your brand, not just your product.
Nando’s was cited as a masterclass in this ladder - offering incentives, embedding loyalty into culture (hello, chili stamps), and cultivating social advocacy.
The Anatomy of a Great Loyalty Campaign
George’s formula for success? Value proposition + personalisation + gamification.
Value Proposition: Make it appealing. Fast-track users to their first reward.
Personalisation: Talk to users like you know them. Offer their favorite drink, not just the high-margin one.
Gamification: Points, progress bars, unlockables - borrow from the gaming world to keep users coming back.
But underlying all of this? Technology. Without the right platform, none of this scales.
“Paper stamp cards gain nothing. No data, no insight, no behavior change. Tech is not optional - it’s fundamental.” - George Gee
How to Lose Loyalty (and Customers)
Here’s George’s shortlist of loyalty mistakes:
Narrow redemption options – e.g., only redeeming for a black Americano alienates non-coffee drinkers.
Launch and leave – Loyalty programs need nurturing, not just a one-time setup.
Bad operations at the till – Staff should ask, “Are you using the loyalty app today?”
No feedback loop – Customers (and your teams) need to see progress and results.
Poor tech or no tech – If your platform is unreliable, slow, or clunky, people won’t use it. Loyalty needs to be easy - at the till, on the app, and behind the scenes.
Loyalty Without the Discount Trap
Many caterers fear loyalty equals margin erosion. George flips that:
“Don’t see it as a discount. See it as added value. You’re earning their engagement, not just giving away margin.”
In fact, loyalty members tend to spend more often, making them far more valuable over time - even if individual rewards cost a bit.
Taking a Page from Supermarkets
The rise of member pricing (pioneered in the US) is now widespread in UK supermarkets - think Tesco Clubcard deals and Lidl’s bakery discounts. These tactics drive acquisition and exclusivity.
Imagine: half-price pastries in the last hour of the day, but only for app users. It reduces waste and increases footfall. Some caterers even use early-access discounts to reward app users, giving them first pick of the good stuff.
Automation and Simplicity: The Future of Loyalty
Contract caterers often deal with thousands of unique menu items, daily changes, and complex environments. George’s advice?
Roll up promotions by category or daypart – e.g., “Hot meals between 12–2 PM” instead of item-specific deals.
Automate intelligently – Set it up once, then let the system handle promotions, personalisation, and reminders.
Measure the right KPIs – Participation rate (aim for 30–50%), redemption, frequency uplift, and AOV (average order value) changes.
“It’s about reducing effort, not effectiveness. Automate what you can, but don’t forget to keep watching the data.”
Why a Captive Audience Still Needs Convincing
It’s easy to assume that if you’ve got a captive audience - like employees in a workplace or students on campus - you’ve already won. But as George points out, that’s a risky assumption.
“Having a captive audience doesn’t mean you have loyal customers. They’re still making a decision every day - stay, bring lunch, or go elsewhere.” — George Gee
The challenge in contract catering isn’t access - it’s attention. Your diners might be in the building, but that doesn’t mean they’re in your restaurant. There’s competition from outside vendors, packed lunches, and food delivery apps just a few clicks away.
And because your customer base is fixed, every lost regular has a bigger impact. You can’t just rely on foot traffic - you have to actively earn it.
Loyalty programs in this setting are less about discounts and more about daily motivation. They give people a reason to return, engage, and stay. Without that extra nudge, even the most convenient location can lose its edge.
What Caterers Need to Know
Here’s what makes loyalty different in contract catering - and how to get it right.
You’re Not the Only Option
Even inside the building, diners have choices. Loyalty helps you stay top-of-mind.
Hybrid Work = Missed Opportunities
Not knowing when people will be on-site means you need to communicate beyond the counter - push notifications, email nudges, and timely reminders.
Simplify the Offer
With thousands of products and daily variation, avoid over-targeting:
Promote by time: “Lunch bonus between 12–2”
Promote by type: “Double points on any hot meal”
Base it on spend: “Earn points per £1”
Get Your Team Involved
At the till, your staff drives adoption. Train them. Let them use the app. Maybe even give them their own loyalty tier. When they believe in it, customers will too.
Focus on the Right Metrics
Forget vanity numbers. Track what matters:
Program participation (aim for 30–50%)
Frequency uplift
Redemption behavior
Average order value (AOV)
It’s not about doing more - it’s about doing the right things for the right people.
So Where Should You Start?
George’s loyalty playbook for caterers:
Define your goals - What do you want to achieve: higher frequency? Bigger baskets?
Launch simply - Start with basic earn-and-redeem. Avoid friction.
Focus on the value proposition - Would you sign up for your own program?
Invest in tech and automation - It scales your effort.
Empower your teams - Give them tools, training, and even their own staff loyalty tier.
Track and tweak - Use data to iterate and grow.
Final Takeaways
If there’s one message to walk away with, it’s this:
You don’t need a gimmick. You need a program that respects your customers’ time, earns their attention, and keeps them coming back.
Keep it simple. Make it personal. Build something worth joining.
As Toby puts it:
“Schemes are for villains. We’re building a club."
