Small Changes to Your Hospo Business to Turn Your Customers Loyal

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So you've started a business and it seems to be a success. People have been flocking to try something new and different, and the feedback is largely positive. But once the initial hype dies down, how do you keep customers coming back time and again?

Surry Hills neighbours Paramount Coffee Project (PCP) and Butter have been serving the community for 11 and eight years respectively. Though their offerings differ — PCP slings contemporary brunch fare and top-notch coffee, while Butter dishes out fried chicken and tipples in a sneaker store — both venues know a thing or two about building customer loyalty.

In partnership with Square, we asked the two industry mainstays how they managed to build customer loyalty, how they balance consistency and change, and what changes they've made to improve the customer experience.

Paramount Coffee Project on Customer Service

For Operations Manager Michelle Galloway, loyalty stems from how you treat your customers and whether you can foster a sense of trust. "Friendly and consistent customer service is most important when it comes to customer retention. One bad experience with a rude waitress is enough for a customer to completely dismiss your cafe, even if you have great food or coffee," shared Galloway.

"It's important to acknowledge all customers that walk through the door with a friendly 'good morning'. We treat our regulars more like our friends than customers. Small things like getting to know your customers, friendly banter and remembering their names and coffee order is essential for any cafe," said Galloway. "There's lots of ways to create a memorable experience, but we focus on three main points: laidback, friendly customer service, a unique food menu and great coffee." 

For that reason, it's crucial to have a strong team that can construct a rapport with customers. "Staff play the most crucial role in building relationships with customers as they are the face of the company. They are the ones that can build a sense of community with our customers." Galloway continued, "Having good staff retention and good training systems means having strong, well-trained staff at all times that are ready to take on all your customers."

As a cafe that's constantly updating its menu, how does PCP strike a balance between new offerings and classic menu favourites? "Keeping staples on the menu to build familiarity is important, but we're always on the hunt to add interesting items to both our food and drinks menu based on what's in season, what's popular and what's trending in Sydney." 

Either way, consistency is key for all menu items. "We pride ourselves on ensuring all products follow a strict recipe to ensure top quality and consistency. There's nothing worse than spending your money on a drink you ordered and loved last week, only for it to taste completely different the next time," explained Galloway. "All our drinks have a recipe that states how many grams of each ingredient goes in each drink."

Butter on Technological Updates and Unique Offerings

For owner, COO and Executive Chef Julian Cincotta, a small change that made an impact on customer retention was "implementing a digital loyalty program that connects with our POS system, website and EDM list — which is all Square." He continued, "By rewarding repeat visits and offering exclusive deals to regular customers, we've fostered a stronger connection and encouraged more frequent returns."

Digital tools have allowed customers to be rewarded for returning to Butter, as well as allowing them the freedom to engage with the venue on their terms. "They [digital tools] have been instrumental in our customer retention," said Cincotta. "Our loyalty system rewards repeat customers, fostering a sense of appreciation and exclusivity."

"Online booking has made it more convenient for customers to visit us, reducing barriers and enhancing their overall experience, whilst being able to spread the word of events, specials, collabs and media activations," he explained. "We also allow flexibility in our ordering — from having QR table ordering to bar ordering and table service — all depending on how the customer wants to interact with us."

These tech updates have also allowed for greater customer satisfaction. "Streamlining our ordering process by integrating an efficient POS system has reduced wait times and minimised errors. This allows our staff to focus more on customer engagement rather than administrative tasks, enhancing the overall dining experience," Cincotta shared.

Although helpful, these upgrades would be useless without an effective team and one-of-a-kind offerings. "Our staff are the heartbeat of Butter. They go beyond serving food; they engage with customers, remember their preferences, and create a welcoming atmosphere. Their genuine interactions and personalised service are key in building trust and long-term relationships with our wonderful customers."

Cincotta went on to say, "At Butter, we focus on delivering a unique and immersive experience by combining exceptional food with elements of music and street culture. Our aim is to engage all the senses — from the taste of our dishes to the ambiance created by our curated playlists — making each visit memorable for our guests."

That said, taking on feedback and keeping an open mind are also vital in appealing to customers. "We've incorporated customer feedback to introduce new dietary options, such as vegetarian and vegan dishes, catering to a wider audience," revealed Cincotta.

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