How to Launch Digital Guest Punch Cards in Canada

Canadian diners want value and recognition, while operators need tools that lift frequency without eroding margin. A digital punch card program hits both marks: it's simple to pitch at the table, easy for guests to use on repeat visits, and measurable down to the dollar.

According to the Toast Consumer Preferences Survey 2025, 72% of Canadian diners say they're likely or very likely to use a digital loyalty program. 

What Is a Digital Punch Card?

Think “buy nine, get the tenth free”, but done digitally and automatically. A digital punch card keeps the same simple rewards idea guests already love, just without the paper. It tracks visits automatically through your POS, so rewards are added and redeemed right at checkout. 

Guests can earn points whether they’re dining in, ordering online, or scanning a QR code at the table. And behind the scenes, you get real insights into what’s working — how often guests return, what items drive repeat visits, and which rewards keep them coming back.

What Canadian Diners Actually Want From Loyalty

Today’s diners expect their rewards to live where everything else does — on their phones. In fact, 75% of Canadian guests say they prefer accessing loyalty programs through a mobile app instead of juggling paper cards or printed QR codes (source: Toast Consumer Preferences Survey 2025). 

A sleek, app-based experience not only makes it easier for guests to join and redeem rewards and keeps your brand top of mind every time they open their phone.

Eco-friendliness plays a role in decision-making. More than 62% of diners consider sustainability, particularly avoiding plastic and paper, important in loyalty program design. Digital programs win on this front.

The deal-friendly pricing culture in Canada means 42% of diners prefer "promotion and deal-heavy" restaurant pricing models. Your punch card aligns with this preference without requiring constant discounting.

Build Your Digital Punch Card in Six Steps

Start by picking your unit: visits, baskets, or category-specific options like coffee only. Next, right-size your threshold by modelling cost of goods sold, margin, and average visit frequency. A seven to ten visit threshold is common for cafés and quick-service restaurants.

Set reward clarity by offering a single free item up to a specific dollar value in Canadian currency or a percentage off, with a cap to protect your margin. Decide where guests can earn by enabling points across in-person visits, online ordering, and at-table QR codes so guests never miss a punch.

Auto-enrol guests politely by inviting them at payment through tap-to-join or receipt QR scanning, while capturing email and SMS consent as outlined in the legal section below. Close the loop on service by ensuring your handhelds and kitchen display system show "Member" and "Reward applied" so front-of-house and back-of-house teams stay aligned.

Toast's integrated Loyalty makes this process straightforward with points by visits or spend, automatic accrual and redemption, and guest tracking built into your POS.

What "Good" Looks Like: Benchmarks You Can Track Weekly

Aim for 10 to 25 joins per 100 transactions after your staff script lands. Target 30 to 50% of monthly guests enrolled as active members. Look for a 10 to 20% visit frequency lift among members compared to non-members.

A healthy reward redemption rate falls between 30 and 60%, indicating solid engagement without over-issuance. You should also see a 5 to 15% check lift on member visits through natural upselling, like "two more visits to a free latte."

For broader context on budgets, tech adoption, and industry benchmarks, see Toast’s Voice of the Canadian Restaurant Industry report.

Compliance and Tax: The Canadian Specifics You Need Before Launch

Marketing Consent Under CASL

If you'll send emails or texts about rewards, you need consent under Canada's Anti-Spam Legislation. Capture express consent including name, contact information, and purpose at sign-up. Log this consent and provide a working unsubscribe option in every message. Implied consent rules exist but are time-limited and nuanced. 

Privacy Under PIPEDA

Collect only what you need, such as name, email or phone, and visit history. Disclose your purpose clearly, safeguard the information, and honour access and deletion requests. Post a privacy notice and vendor list, including your POS provider. 

Gift Cards Versus Loyalty Rewards: GST/HST and Provincial Rules

Gift certificates carry no GST or HST on sale or issuance, with tax applied on redemption. Keep breakage and liability tracked in your POS and accounting system.

Gift card rules aren’t the same everywhere. In Ontario, for example, most retail gift cards can’t expire, and extra fees are limited under the Consumer Protection Act, 2002. Loyalty rewards are a bit different, but if you’re offering prepaid value or stored credit, make sure your terms follow the same spirit of those provincial rules — clear, fair, and transparent for guests.

Keep loyalty rewards clearly promotional rather than cash equivalents and publish plain-language terms and conditions covering earning rate, caps, exclusions, expiry if any, and how to opt out.

Quick Playbook by Concept

Coffee shops and bakeries: Keep it simple and fun — after seven to ten visits, guests earn a free drink or pastry (up to a set value). Try small touches like Double-Punch Tuesdays before 11 a.m. to drive early traffic.

Quick-service restaurants (QSRs): After eight visits, surprise guests with a rotating “member favourite.” Changing the reward keeps things fresh and gives regulars something new to look forward to.

Full-service restaurants: Turn milestones into moments — offer a free dessert or appetizer after a set number of visits, and make birthdays special with a personalised treat or note from the team.

Bars: Keep it social and responsible. Offer a food-based or non-alcoholic reward after a few visits — something that fits your vibe without overdoing it.

Next Steps

Digital punch cards succeed because they're human-simple and operations-friendly. They speak to Canada's value-minded diner, reduce waste, and slot right into your POS, so your team can focus on hospitality while the system quietly builds repeat business. This also means you’re creating a framework that rewards the guests who matter most while giving you the data to understand and serve them better.