Americans are expected to spend about $31 billion on gift cards this year, and restaurants are angling to get a larger piece of that action.
It’s standard practice these days for chains to offer bonus gifts to gift card buyers. For instance, buy a $50 Applebee’s gift card this season and receive a free $10 bonus gift card. As a result, brands are working harder to stand out from the crowd.
Applebee’s has revamped its gift card experience to include a new eGift card option that can be customized and includes animation that electronically “unwraps” the card to reveal the amount. Buyers can add a photo, video or audio message, and schedule delivery.
In addition, friends can send a digital group gift. When purchasing the card, friends can be invited to contribute to a collective card, or add specific menu items like a beer, dessert or entrée. A “photo book” option allows senders to assemble animated pages with multiple photos, or contributors can put in their own video message.
“Gift cards don’t have to be boring,” said Darin Dugan, Applebee’s senior vice president of culinary and marketing. “In addition to delicious food and drinks, these new features will surprise and delight recipients while bringing friends together for a few laughs.”
Gift cards are the No. 1 most requested gift for the eighth consecutive year, with 62 percent of consumers saying they would like to receive one, according to the National Retail Federation’s annual Gift Card Spending Survey of more than 6,500 consumers.
The average shopper buying gift cards, including restaurants and retail, will spend $172.74, an increase from $163.16 last year.
Total gift card spending is expected to reach $31.7 billion, and 34 percent of survey respondents said they plan to give gift cards for restaurant meals, the NRF said. One in five, or 20 percent, said they would give a coffee shop gift card.
Last year, Starbucks said consumers bought $1 billion in gift cards during the holiday season. This year, the chain is offering a lineup of 100 unique gift cards, including a $200 limited-edition sterling silver gift card preloaded with $50. It has already sold out.
GiftCardRescue.com, where consumers can buy or sell unwanted gift cards, said last week that a Starbucks gift card was among its Top 20 “most wanted” gift cards, based on consumer surveys. Home Depot was No. 1, followed by Lowe’s, Amazon.com and Walmart. Starbucks ranked No. 5, and was the only restaurant chain to make the Top 20.
Apparently, consumers used to feel guilty about giving gift cards, but they don’t anymore, according to gift card provider CashStar. Now the recipients of gift cards feel guilty asking for a gift that has a clear cash value, CashStar said.
According to its survey, 60 percent of consumers say they want a gift card this season, but 30 percent feel too guilty to ask for them. The top two reasons: 62 percent said they don’t like asking for anything, and 61 percent said it feels the same as asking for cash. Another 45 percent said it doesn’t feel personal enough.
However, Ben Kaplan, president and chief executive of CashStar said: “Digital gift cards, and the ability to personalize them with photos, videos and special messages, has done a lot to combat the perception of gift cards being impersonal gifts.”
Needless to say, Kaplan feels it’s time to get over gift card guilt.
The majority of gift givers (78 percent, or 87 percent of grandparents, specifically) say they like giving gift cards because they’re easy. Only 9 percent said they feel awkward about the monetary value associated with a gift card.
Restaurant gift cards are also playing an important role in holiday-related social media campaigns.
Social media-driven giving
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Panda Express started early, spending Nov. 19 on Twitter “joy spotting.” The brand targeted 888 people who tweeted about joyous moments with the hashtag #sharejoy, and surprised them with a $20 gift card to Panda Express.
@PandaExpress I'm thankful I finnaly Have a job after leaving the military year and a half ago. #sharejoy
— Carlos Trujillo (@Ctrujillo20) November 23, 2014
The estimated 7,600 #sharejoy mentions ranged from amusing (“I’m thankful for my beard. To keep my chin warm in this weather.”) to touching (“I’m thankful for my mother who had the strength to care for me while going through breast cancer. She’s a survivor.”).
The effort, which Panda Restaurant Group Inc. officials noted cost “zero” media dollars, resulted in nearly 6.5 million impressions, 994 retweets, 2,183 replies and 1,733 “favorites.” The number of Panda Express followers also increased 24 percent, the company said, and there was a 394-percent increase in mentions of the brand on Twitter.
And don’t forget Cyber Monday, which this year falls on Dec. 1, another opportunity to grab the attention of online shoppers.
The Cheesecake Factory is offering two free “eSlice of Joy” cards with the purchase of a $25 gift card. The slice cards can be sent digitally as gifts.
Then, of course, there’s #GivingTuesday, on Dec. 2, a social-media-driven event that began three years ago.
The 61-unit BurgerFi chain, based in West Palm Beach, Fla., is celebrating #GivingTuesday with an offer to match in-store gift card purchases dollar for dollar through Dec. 31, with a donation to the American Red Cross. BurgerFi has committed to donating at least $10,000 to the nonprofit group.
But really, why stop there? With the popularity of pay-it-forward, I hereby nominate Dec. 3 as Buy A Stranger A Restaurant Gift Card Day.
Buy a gift card. Turn to the person behind you in line and give it away. (Enjoy the bonus gift yourself.)
Sometimes it really is better to give than to receive.
Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout
