Selling restaurant gift cards in Calgary: Alberta's no-expiry rule and what sells

A gift card is the one thing on your menu that is paid for before you cook it. For a Calgary restaurant or café, that matters: December sales pay for a quiet February, and many gift cards are bought by somebody who has never eaten with you, for somebody who has. Before you sell them, it helps to know the Alberta rules.

Can a restaurant gift card expire in Alberta?

Generally, no. Alberta's Gift Card Regulation, under the Consumer Protection Act, says a supplier must not offer for sale or sell a prepaid card with an expiry date. It also allows only three fees: a one-time fee to activate the card when it is bought, a fee to replace a lost or stolen card and a fee to customize a card. A fee that reduces the balance, such as an inactivity fee, is not allowed. A gift card worth a set amount keeps that value until it is used up.

There are exceptions. The Government of Alberta says cards that do not have a cash value, such as promotional cards, loyalty cards and cards for a specific service with no dollar amount, are not covered, and neither are cards issued under a direct agreement with a bank or other financial institution. If you plan anything unusual, such as a card for "one tasting menu for two" or a free bonus card attached to a purchase, check the current provincial guidance or ask a professional. This is general information, not legal advice, and the regulation is due for review (it is set to expire on October 31, 2028 unless it is renewed), so check the current text. The practical rule for most restaurants is simple: sell gift cards for an amount, and do not put an expiry date on them.

What must you tell people who buy a gift card?

The regulation also sets out what a seller has to do:

• Disclose the terms that affect use of the card, clearly, on the card itself and on any packaging or promotional material. That includes contact information for questions and the remaining balance, any restrictions (for example that the card cannot be exchanged for cash) and the return policy that applies to purchases made with it.
• Give the buyer a receipt as proof of purchase at the time of sale.
• Accept the card as part payment on a purchase, and never keep an unused balance after it has been used.

What gift card amounts sell best?

Three options is usually right, and most buyers pick the middle one, so the middle amount sets your typical sale more than anything you write about it. Think about what the card is for:

• A café card is a run of mornings, so smaller amounts feel natural.
• A restaurant card is usually dinner for two, so it should cover dinner for two. A card that leaves someone well short of a meal produces an awkward evening and no second visit.

Should you add bonus value to a gift card?

Bonus credit, giving more to spend than the buyer paid, is a strong reason to buy now rather than later. It also nudges buyers toward a larger amount. Remember that bonus value costs you the food cost of that value, not its face value. Because a free bonus card may fall outside the regulation while a card someone pays for does not, keep the terms of any bonus clear and check how the rules apply before you run one.

When do Calgary customers buy gift cards?

Almost never unless they are reminded. Gift cards are bought in the days before Christmas, the week before a birthday or Mother's Day, and the afternoon somebody realizes they forgot an anniversary. Restaurants that sell them mention them at exactly those moments:

• December, in every social post and on every receipt
• Before Valentine's Day and Mother's Day
• During Stampede, when visitors want to thank hosts
• At the counter, when staff are asked whether you do gift cards

How should staff handle gift card questions?

Most gift card sales start with a customer asking at the counter, so make sure every staff member can answer three questions without looking anything up: do you sell them, how can I buy one and how do I check my balance? A small card by the till with a link or code turns "I'll look it up later" into a sale on the spot.

Do gift cards help a slow season?

They can. Cards sold in December are often redeemed in January and February, the quietest months for many Calgary restaurants. That is food served when the dining room would otherwise be half empty, paid for weeks earlier. The tax side is covered in the guide on GST/HST and gift card sales.

What should you do about lost gift cards?

Decide your policy before the first customer asks, and include it in the gift card terms.

• Digital cards are easier to protect. If a card is tied to the buyer's email or account, you can check its history and reissue the balance to the right person.
• Physical cards behave like cash. Many restaurants cannot replace a lost plastic or paper card without proof of purchase. Say so clearly. Alberta lets you charge a fee to replace a lost or stolen card, but no other fee, so state any replacement fee in the terms.
• Keep a record of card numbers and balances, so a card can be traced when a customer has a receipt.
• Apply the policy the same way every time.

How do you start selling gift cards?

1. Choose three amounts based on what a typical visit costs.
2. Write short, clear terms with no expiry date.
3. Put the way to buy in your bio, on your website and on receipts.
4. Train staff to redeem a card and check a balance.
5. Plan your December reminder before November ends.

More from Calgary: Stampede events and food handler training.

More in the Canadian guides for food businesses.