Dynamic loyalty programs represent a novel approach to restaurant revenue management by incentivizing customer behavior to optimize capacity utilization and enhance revenue. Unlike traditional dynamic pricing models that risk customer dissatisfaction due to perceived unfairness, dynamic loyalty programs leverage loyalty points to influence dining schedules without altering menu prices. This study investigates the effectiveness of such programs through a scenario-based experiment, analyzing the role of locus of control in shaping customer responses. Findings indicate that customers with a strong internal locus of control and younger demographics are particularly responsive to these incentives, highlighting the potential for tailored strategies.
