Gift
cards have graduated from the holiday stocking stuffer to something much more
important: a year-round food marketing, customer acquisition, and
revenue-generation tool. For restaurant operators, convenience stores, grocery
retailers, and other foodservice businesses, the opportunity is not simply
selling more gift cards. It is using those cards to create more consumer
occasions, encourage customer migration, build brand relationships, and bring
customers back according to Steven
Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. .
New
research from Paytronix underscores
this changing marketplace. According to its 2026 Gift Card Report, gift card
revenue increased 18.3% year over year, climbing from $425.7 million in 2024 to
$503.7 million in 2025. Yet the number of cards sold increased just 2.6%, from
11.3 million to 11.6 million.
That
difference deserves attention.
Consumers
are not necessarily purchasing substantially more cards. They are purchasing
higher-value cards. In other words, the gift card business is experiencing a
meaningful increase in dollars per transaction.
For
foodservice brands competing for increasingly selective consumer spending, that
is a marketing opportunity worth recognizing.
Consumers Are Trading Up, Not Simply Buying More
The
most interesting finding in the Paytronix
research is the shift in gift card denominations.
The
$50 gift card was the strongest performer, with unit sales increasing 11.5%,
from 1.88 million to 2.10 million cards. Meanwhile, $25 cards declined 5.8%,
although they remained the largest denomination by unit volume, with 2.29
million cards sold.
The
$10 denomination increased 5.3%, while $5 cards experienced the steepest
decline, falling 12.5%.
What
does this tell foodservice marketers?
Consumers
appear increasingly comfortable giving a more substantial gift or putting more
purchasing power behind a single brand relationship.
For
restaurants, this creates an opportunity to rethink gift card merchandising.
Rather than simply displaying $25 cards at the checkout counter, brands should
consider promoting $50 cards, family meal occasions, dinner experiences,
bundled offerings, and digital gifting.
A
$50 gift card can represent more than a prepaid purchase. It can introduce a
household to a restaurant, encourage a family dinner, or give a consumer a
reason to try a brand they have not visited previously.
However,
operators should not abandon smaller denominations. The $10 card's growth
demonstrates that accessible entry points remain relevant.
The
objective is to offer choices that match different gifting occasions and
consumer budgets.
Full-Service Restaurants Are Finding Growth
Paytronix
also identified an important difference between restaurant segments.
Full-Service
Restaurants (FSR) led growth, with gift card units increasing 4.4%, reaching
nearly 4.3 million cards.
Electronic
gift cards increased 3.0%, reaching approximately 972,000 units.
Quick-Service
Restaurants (QSR), despite representing approximately 58% of all cards sold,
experienced a slight 0.3% decline, with approximately 6.65 million cards sold.
That
is a development QSR operators should not overlook.
Quick-service
restaurants have historically benefited from convenience, familiarity,
accessibility, and frequent consumer visits. Yet the gift card numbers suggest
that full-service restaurants are gaining momentum in this particular category.
Could
consumers be placing greater emphasis on experiences, shared meals, and
occasions when selecting a restaurant gift?
That
is a possibility worth exploring.
QSR
operators should not assume that convenience alone will sustain gift card
growth. They need to make their gift cards more relevant to today's consumer.
Family
meals, group occasions, digital gifting, breakfast bundles, snack occasions,
and meal deals can all give consumers a reason to purchase a gift card.
The
winning strategy is to sell the occasion, not just the card.
Digital Gifting Is Changing the Customer Relationship
Electronic
gift cards accounted for approximately 8.4% of total card volume in the Paytronix data.
While
that remains a relatively small portion of the overall market, its continued
growth demonstrates the importance of digital accessibility.
Consumers
want to purchase and deliver gifts when and where it is convenient for them. A
birthday, graduation, thank-you, employee recognition, or last-minute
celebration no longer requires a trip to a physical store.
For
foodservice brands, digital gift cards also create opportunities to connect
gifting with loyalty, mobile ordering, online ordering, and personalized
marketing.
A
digital gift card can become an entry point into a brand's broader customer
engagement ecosystem.
But
there is an important distinction: selling a digital card is not the same as
creating a digital customer relationship. Brands must have a plan to encourage
redemption, introduce customers to their menus, and provide reasons to return.
The
National Restaurant Association's 2025 Off-Premises Restaurant Trends research
found that nearly 75% of restaurant traffic occurs off-premises. It also found
that 65% of drive-thru customers and more than 60% of takeout and delivery
customers say loyalty program membership influences where they order.
That
makes the connection between gift cards, loyalty, digital ordering, and
off-premises dining particularly important.
A
gift card should work across the consumer's preferred access points, whether
that means dining in, ordering takeout, using the drive-thru, or arranging
delivery where available.
Redemption Speed Matters: The Clock Is Working in
Restaurants' Favor
Another
encouraging Paytronix finding is that consumers are redeeming gift cards
faster.
Average
days to redemption declined from 32.7 days in 2024 to 31.1 days in 2025, a 5%
improvement.
That
matters because redemption represents an opportunity to create an actual
foodservice transaction.
The
gift card purchaser may be the person who introduces the recipient to a brand.
The recipient becomes a potential customer. The redemption visit becomes an
opportunity to sell additional food, beverages, desserts, sides, and future
occasions.
However,
redemption should not be treated as the finish line.
The
real marketing opportunity begins when the recipient walks through the door or
places an online order.
Restaurants
should use that first redemption occasion to introduce loyalty enrollment,
encourage a second visit, promote a relevant menu item, and create a reason to
return.
In
the Grocerant Niche, where consumers migrate between restaurants, grocery
prepared foods, convenience stores, and other fresh-prepared food destinations,
every new consumer interaction matters.
A
gift card can be the introduction. The food, service, convenience, and
experience must earn the next visit.
December Is Still King, But the Opportunity Is Expanding
According
to Paytronix, December accounted for approximately 31% of annual gift card
volume in both 2024 and 2025.
Yet
December 2025 sales were essentially flat compared with the previous year, at
approximately 3.623 million cards.
The
more interesting development is what happened outside the traditional holiday
season.
January
gift card sales increased 16.2%, April increased 10%, and June increased 10.1%.
These
numbers suggest that gift cards have opportunities beyond Christmas, Hanukkah,
and other traditional holiday gifting occasions.
Think
about the possibilities:
·
January: New Year's celebrations,
resolutions, and employee recognition.
·
February: Valentine's Day, friendship,
and shared dining experiences.
·
March and April: Spring celebrations,
Easter, and graduation gifting.
·
May and June: Mother's Day, Father's
Day, graduations, and summer gatherings.
·
July and August: Travel, family
reunions, and summer celebrations.
·
September and October: Back-to-school
appreciation, birthdays, and employee recognition.
·
November and December: Holiday
gifting, corporate incentives, and family celebrations.
Every
month offers a reason to connect consumers with a food brand.
The
National Restaurant Association reported in December 2024 that 59% of American
adults planned to give restaurant gift cards during the holiday season. That
figure increased to 74% among Gen Z adults and 70% among Millennials.
Those
findings reinforce the potential of restaurant gift cards to reach consumers
across generations.
Meanwhile,
the National Retail Federation projected $29 billion in total gift card
spending during the 2025 holiday season. Gift cards ranked as the second-most
popular holiday gift category.
The
market is large, but the opportunity for restaurant brands is to capture a
greater share of those dollars and turn gifting into repeat business.
Gift Cards Must Deliver Price, Value, and Convenience
There
is another consideration foodservice operators cannot ignore: consumers remain
price-conscious.
The
National Restaurant Association projected 2026 restaurant and foodservice sales
of $1.55 trillion, while identifying persistent operating costs and cautious
household spending as continuing industry challenges.
Its
2026 industry research also found that 61% of consumers consider restaurants
essential to their lifestyles and intend to continue prioritizing dining out.
That
creates a balancing act for restaurant marketers.
Consumers
want convenience, quality, service, and experiences, but they also want to feel
that their money is being well spent.
A
gift card can help communicate value without requiring a brand to permanently
discount its menu.
For
example, a restaurant can merchandise a $50 gift card alongside a family meal
experience, a special occasion dinner, or a seasonal menu promotion. The card
becomes a vehicle for purchasing power and an introduction to a particular
dining occasion.
Brands
can also create incremental sales opportunities through suggested pairings,
limited-time offers, and loyalty incentives.
The
important point is to avoid confusing a gift card promotion with a discounting
strategy.
Gift
cards should strengthen the brand's Price Value Service Equilibrium. The
consumer must believe the food, service, convenience, and experience justify
choosing that brand again.
The Grocerant Guru® Perspective: Stop Treating Gift Cards
as a Holiday Department
Gift
cards are not merely a financial transaction or a seasonal retail item. They
are a customer acquisition vehicle, a brand introduction, a potential loyalty
trigger, and an opportunity to influence future food purchasing behavior.
The
Paytronix findings reveal three important developments: higher-value
denominations are gaining momentum, full-service restaurants are growing their
share of gift card activity, and redemption is happening faster.
For
restaurant and food retailers, the next step should be connecting those
findings to consumer behavior.
Brands
must stop thinking in terms of selling a card and start thinking about selling
the next food occasion.
The
consumer does not think in channel silos. A household may use a restaurant gift
card for dinner, purchase fresh-prepared meals at a grocery deli the next
evening, and pick up breakfast at a convenience store the following morning.
Every
brand needs to remain relevant at the intersection of price, time, flavor,
convenience, and service.
Gift
cards can help accomplish that objective, but only when they are integrated
into an ongoing customer engagement strategy.
Three Grocerant Guru® Insights: How Gift Cards Can Help a
Brand All Year Long
1.
Gift Cards Are Customer Acquisition Tools, Not Just Revenue Tools.
Every
gift card represents an opportunity to introduce a new consumer to your brand.
The purchaser may already be a loyal customer, but the recipient could be a
first-time visitor. Make redemption the beginning of a relationship through
loyalty enrollment, personalized offers, and reasons to return.
2.
Merchandise Gift Cards Around Food Occasions, Not Just Holidays.
Birthdays,
graduations, employee recognition, family meals, sporting events, summer
travel, and everyday appreciation create year-round opportunities. Connect gift
cards to specific meals, menu bundles, and experiences. Sell the occasion and
the food, not simply the denomination.
3.
Use Gift Cards to Create Repeat Visits and Increase Customer Lifetime Value.
The
initial redemption is only the beginning. Connect gift cards with loyalty
programs, mobile ordering, seasonal menu introductions, and targeted
promotions. Measure not just cards sold, but redemption, incremental spending,
repeat visits, and long-term customer engagement.
The
Bottom Line: Gift cards should never be relegated
to a holiday display or an occasional promotional campaign. They are a
year-round marketing asset. Brands that understand how to turn a gift into a
food experience, and that experience into a repeat customer, will be better
positioned to grow.
Success Leaves Clues—Are You
Ready to Find Yours?
One key insight that continues to
drive success is this: "The consumer is dynamic, not static." This
principle is the foundation of our work at Foodservice Solutions®, where Steven
Johnson, the Grocerant Guru®, has been helping brands stay relevant in an
ever-evolving market.
Want to strengthen your brand’s
connection with today’s consumers? Let’s talk. Call 253-759-7869 for more
information.













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