Food and drink gift cards: franchises are the catch

Food and drink cards are easy to give and easy to spend, and they have one structural problem that no other category has to the same degree: a large share of the branches are not owned by the brand.

The franchise problem

Coffee chains and fast food brands are heavily franchised. A franchised branch is a separate business that licenses the name. Many take group gift cards; a meaningful minority do not, and the ones that do not are often exactly the branches people use — motorway services, airports, railway stations, supermarket concessions.

There is no reliable way to tell from the outside. The practical advice:

  • For a regular, give a card for a chain they visit often, where you know the branch works.
  • For a one-off, an app balance is safer than a card, because the app only shows participating locations.

Three different products

  • Coffee chain cards. Usually tied to the brand's app, often with loyalty points attached. Excellent for a daily habit.
  • Restaurant group cards. Cover several brands under one owner. Check which brands, because the list changes.
  • Delivery app credit. Works across many restaurants but only through that app, and the app's fees apply.

Delivery credit is the most flexible and the least good value, because service fees and delivery charges eat into it. A £25 delivery credit buys noticeably less food than £25 in a restaurant.

Loyalty points are worth more than they look

Most coffee chains give points on gift card spend. Paying with the card inside the app typically earns points that paying with a bank card does not — or earns them faster. For a daily coffee drinker this compounds into a real amount over a year.

If the recipient uses the app, say so when giving the card: "load it into the app" is useful advice, not a formality.

Choosing an amount

  • Coffee: the price of five to ten visits reads as generous without being odd.
  • Restaurant: cover a meal for two, or make it clearly a contribution. Landing just short of a meal is the worst outcome.
  • Delivery: add roughly a third for fees, or accept it will cover less than it says.

Who it suits

Nearly everyone, which is why it is the most-given category. Weak only for people who cook at home and rarely eat out — a grocery card serves them better.

Common questions

Why did a branch refuse a card from the same chain?
It is likely franchised. Airport, station and supermarket branches are the usual ones, and the staff cannot override it.
Is delivery app credit good value?
It is the most flexible and the least efficient. Service fees and delivery charges mean the balance buys noticeably less food than the same amount in a restaurant.
Do coffee cards earn loyalty points?
Usually, and often at a better rate than paying by bank card. Loading the balance into the brand's app is normally required.

← More on gift cards by category

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