Level-up every swipe: the best ways restaurants can use credit card points

1. Optimize Bulk Purchases

Buying in bulk is like hitting the jackpot. Not only do you save on per-unit costs, but those points pile up faster than you can say "stockroom." Whether it's ingredients, cleaning supplies, or disposables, purchasing in larger quantities not only reduces your immediate spending but also accelerates point accumulation, offering a dual benefit of cost efficiency and increased reward potential.

2. Get More From Recurring Expenses

You'll pay your rent and utilities monthly anyway, so why not put your credit card to work and reap the sweet, sweet rewards? By systematically channeling essential, recurring expenses through your credit card, you ensure your point balance steadily grows, turning everyday costs into future savings potential. Bigger costs = bigger rewards.

3. Control Liquid Assets

One of the biggest reasons to use a credit card is to make purchases when you don't have the cash (aka liquidity) or need cash for something else. Let's say you've got a liquor delivery coming this week, and know you'll need COD. Credit card. Restaurants deal with a fair amount of cash-only vendors, so using a credit card when you can and saving the cash for when you need it can be a big help.

4. Utilize Your RMS Bill Pay Solution

Integrating a credit card payment with your restaurant management system (RMS) bill pay solution is a game-changer for accumulating credit card points. By using this system to pay your monthly bills—such as rent, insurance, and maintenance—you can turn obligatory expenses into rewarding opportunities.

Each payment processed through your credit card simplifies your billing management and seamlessly racks up points. Your RMS gives you oversight over all your expenses, and paying your bills through it eliminates extra steps in your financial management processes.

This approach maximizes your rewards without altering your cash flow, allowing you to reap the benefits of your regular financial obligations while still enjoying the convenience and efficiency that an RMS solution provides. This strategy is an effortless way to boost your point balance and enhance your restaurant's profitability.

1. Purchase Kitchen Equipment

Need a new oven or fridge? Why not let your points foot the bill or cover some of it? Using points to acquire vital kitchen equipment not only preserves cash flow but also leads to enhanced operational efficiency and potentially improved customer satisfaction through better service delivery. The best card to do this will be a cash-back card. 

2. Stock Up on Shelf-Stable Supplies

From silverware to the ever-essential cleaning products, points can cover it all. Depending on your card issuer, you can also redeem points as gift cards (like Amazon or The Home Depot), and keep your pantry full without even touching your cash flow.

This strategy not only keeps your restaurant running smoothly but also allows for maintaining higher inventory levels of shelf-stable products without the cash strain, giving you an edge in managing supply despite profit fluctuations.

3. Reward and Motivate Staff

Use points for gift cards or bonuses to thank your team. Happy staff equals happy customers, which equals a bustling restaurant. Investing in your team through points-based rewards not only fosters loyalty and morale but also contributes to a positive work environment that translates into exceptional customer service and, consequently, business growth.

4. Reward Yourself

Time to surprise your spouse with free flights to Bora Bora or even just Boca (we hear it's nice for winter)? With a travel credit card, you've earned it. Taking vacations as a restaurant operator can be incredibly difficult, but burnout is a real thing and will do a lot more damage over time than a week of R&R.

Building systems (like an end-to-end restaurant management system) and having a well-trained team make it easier to redeem those sweet, sweet rewards. Check out this blog to see the 7 things to look for in an RMS.

1. Overlooking Interest Rates

Points are great, but not if they're overshadowed by high interest rates. Keep balances in check to ensure the benefits aren't negated. Maintaining a disciplined approach to credit card management is crucial for maximizing benefits without falling into the trap of accumulating unnecessary debt.

Some credit cards will offer 0% APR for the first 12 or 18 months, which is something to consider if you want to maximize points without worrying about credit. Although it's worth repeating, no credit card rewards are worth it if you pay hundreds to thousands in interest every month.

2. Ignoring Expiration Dates

Points can expire—don’t let them go to waste. Keep an eye on those dates and plan your redemptions. Staying informed about the terms and conditions of your credit card program ensures you capitalize on your points before they lapse, safeguarding your potential savings.

3. Mismanaging Multiple Cards

Multiple cards mean more points and opportunities for different sign-on bonuses, but can also lead to chaos. Stay organized, so you don't miss out on rewards. You can effectively manage your credit card portfolio by keeping track of card balances and rewards structures and optimizing point accumulation and redemption strategies.

4. Higher Fees than Rewards

Many vendors charge nominal credit card usage fees, typically around 2-3% per charge, which is standard. If your cash back or travel point rewards are higher than that percentage, you're good to go because ultimately you'll make more from the cashback than the fee you're paying to use your credit card.