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Customer Loyalty for Bakeries: Best Practices for Digital Loyalty Cards

Customer Loyalty for Bakeries: Best Practices for Digital Loyalty Cards

Hardly any other industry has as many customer interactions as the baking trade. In the morning before work, a roll at lunchtime, pretzels on Sundays—some customers come in five times a week. And yet, what we know about them usually ends with their paper loyalty card.

In this post, we’ll use our project with Höflinger Müller to show you how bakeries are leveraging this frequency digitally.

Why Bakeries Are in a Particularly Good Position

The starting conditions in the baking industry are exceptionally favorable. High foot traffic, small average receipt amounts, and established habits—this is exactly the combination in which a loyalty program can quickly take effect.

At the same time, there’s one unique aspect: the wait time is short. Anyone standing in line in the morning doesn’t have a minute to spare for a complicated registration process. Everything has to work in seconds.

Characteristics of the BakeryOpportunityApp Requirements
Very high visitor trafficPoints add up quicklyLow initial premium threshold
Low average receipt amountSmall advantages make a big differenceProduct Rewards Instead of Percentages
Regular Daily RoutinesTimely communication is possibleTime-Stamped Push Notifications
Short dwell timeNo consultation requiredSign Up in Less Than 60 Seconds
Established Coffee PassportEveryone is familiar with mechanicsA Digital Stamp Card as a Starting Point
Seasonal BusinessClear Triggers for ActionCampaigns such as Advent calendars

The Case Study: Höflinger Müller

Höflinger Müller, headquartered in Neufahrn near Munich, operates four concepts: Müller, Höflinger, The Brezn Concept Store, and Kuchentratsch. The long-established company sought to combine craftsmanship with digitalization without altering the character of its stores.

On May 15, 2025, the app developed in collaboration with hello again went live. At its core is the digital coffee pass. This was complemented by gamification elements, rotating coupons, a store locator, and a multi-channel marketing campaign: in-store materials, digital signage at 22 locations, and pop-ups on the website.

One euro more per receipt may seem like a small amount at first. But given how often people visit a bakery, it’s not. Someone who comes five times a week ends up spending about 20 euros more per month—and that’s without any price increase.

Best Practice 1: Start with the Coffee Passport, not the points system

The coffee card is the best-known system in the baking industry. Ten coffees, one free—no one needs an explanation. That’s exactly why it’s a better way to get started than an abstract points account.

In digital form, it has three advantages over a paper card: it can’t be lost, it can be analyzed, and it can be expanded. The coffee pass can later become a pretzel pass or a breakfast pass without customers having to learn anything new.

Best Practice 2: Sign Up in Less Than 60 Seconds

The morning line determines whether someone will participate. If the registration requires six fields, it doesn't go through—and the line grows.

Keep it to the bare essentials. A QR code at the counter, a quick sign-up, and you get your first stamp right away. You can ask for additional information, such as the date of birth, later in the app, along with a specific perk.

Best Practice 3: Deliberately Use Game Mechanics

Gamification involves incorporating game-like elements into non-game contexts. At Höflinger Müller, these included a wheel of fortune at the point of sale and an Advent calendar in the app, accompanied by radio commercials.

The effect is twofold: A wheel of fortune right in the store encourages sign-ups the moment customers visit. An Advent calendar brings people back to the app every day for weeks—even on days when they aren't shopping.

FormatEffectBest Time
Wheel of Fortune at the Point of SaleRegistration at the time of the visitIntroductory Phase, Action Days
Advent Calendar in the AppDaily return trips over several weeksDecember
Collectible Card for a ProductDirect traffic to a product categoryPermanent
Scratch-off tickets after shoppingAn Immediate Sense of AchievementBy Cash Register Transaction
Store ChallengeTesting Multiple LocationsVacation Season, Grand Reopening

Best Practice 4: Make the Sales Team the Driving Force

At Höflinger Müller, there were internal competitions with prizes for the best store teams. This isn't just a nice-to-have—it's often the deciding factor.

In a bakery, interactions with customers are brief and personal. A single sentence spoken while packing up has a greater impact than any poster. For this to work, the team needs three things: a brief explanation of the benefits to the customer, a set phrase, and visible recognition for successes.

Best Practice 5: Advertise wherever customers are already looking

Höflinger Müller uses in-store materials, digital signage at 22 locations, and pop-ups on its website. This combination was deliberately chosen because each channel reaches customers at a different moment.

  • At the bar: reaches regular customers at the moment of purchase—the most important group.
  • Digital signage: helps pass the time while waiting and requires no additional staff.
  • Website pop-up: captures visitors looking for hours of operation or product offerings.
  • Packaging and carrying case: works at home when you have a quiet place to set it up.
  • Radio and local media: are worth considering for major campaigns, such as an Advent calendar.

Best Practice 6: Plan for Health Insurance Integration

Many bakeries start out without a full integration with the point-of-sale system because it allows them to get up and running more quickly. That’s perfectly acceptable—but it should be a deliberate interim step.

Höflinger Müller has already implemented full integration. With this integration, points are automatically credited, and you can see not only visits but also shopping carts. This is exactly what enables meaningful recommendations.

Your Checklist for Getting Started

StepWhat You DoHow to Recognize Success
1. Select a mechanismSet up a digital coffee pass as a starting pointCustomers understand them without an explanation
2. Shorten the registration formReduce to two or three fieldsSigning up takes less than 60 seconds
3. Set an immediate benefitFirst stamp or coupon upon registrationPercentage of Redempted Starting Bonuses
4. Involve the teamA brief training session and a set of recommendationsSign-ups by store and shift
5. Increase visibilityCounter, screens, website, packagingThe login source can be analyzed
6. Test a game featureWheel of Fortune or stamp card, clearly time-limitedParticipation Rate and Return Rate
7. Check monthlyCompare Bon with and without the appDifference in Average Receipt Amount

Conclusion: The frequency is already there

Bakeries don't need to create new occasions. Customers come in anyway, often several times a week. The key is to make these visits more visible and link them to small perks.

The Höflinger Müller example shows just how smoothly this can go: familiar processes, a quick sign-in, playful activities, and a team that’s on board. An extra euro per receipt is just the most visible of several benefits.

FAQ: Frequently Asked Questions About Customer Loyalty in Bakeries

Do customers lose their stamps when they switch?

No, if the transition is planned. It’s common to have a transition period during which both the paper card and the app are valid at the same time. Cards that are fully or partially filled will be transferred to the app at the counter. A small transition bonus further speeds up the switch and ensures that no one feels like they’re losing out.

Does this work for a single bakery, too?

Yes. High foot traffic is the real driver, not the number of locations. With a single location, the store locator isn't needed, but personalized communication and birthday perks have a particularly strong impact. It's important to set a realistic target: what matters most is the percentage of your regular customers using the app, not the absolute number of users.

How much work does this entail for the sales team?

Very little during normal operations if the app is connected to the point-of-sale system. In that case, points are credited automatically. Without that connection, one scan is required per transaction, which takes just a few seconds. The greater effort is involved in the implementation phase, when the team actively promotes the app. A brief 10-minute training session is usually sufficient for this.

Which premiums are suitable for a low average receipt amount?

Product incentives are significantly more effective than percentage discounts. A free coffee, a pretzel, or a slice of cake have a clear perceived value and are easy to calculate. Percentage discounts on a receipt totaling just a few euros, on the other hand, seem insignificant. An upgrade at no extra charge—such as a larger size of coffee—is also a good idea.

When is it worth having an Advent calendar in the app?

If you already have a user base that you want to engage. An Advent calendar brings people back to the app every day for weeks on end, even without a purchase. This significantly increases the visibility of your offers. Without an existing user base, the effort required is high and the reach is low. In that case, a promotion at the point of sale—such as a wheel of fortune—is a better option.

What metrics should I use to assess success?

Three key metrics are enough to start with. First, the percentage of active users who have made at least one purchase in the last 90 days. Second, the reward redemption rate, which shows whether the thresholds are achievable. Third, a comparison of the average receipt amount with and without app usage. At Höflinger Müller, this difference is €1.00.

Ready to take your customer loyalty to the next level?