How Switching to Per Diem Helped Formosa Coffee Fix Square Loyalty Sync

TLDR

Formosa Coffee opened in 2019 in Scarsdale with a clear focus on doing one thing well: bringing authentic Taiwanese coffee and tea into one place and keeping the quality consistent. The beans come from small farms in Yun Lin, Taiwan, where harvests are limited, and each batch is roasted in New York City in small quantities. That level of control shows in every cup and has helped the shop build a steady base of regulars. This case study looks at how that same focus on consistency extended into their ordering and loyalty experience after switching to a system fully aligned with Square.

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A Coffee Shop Built on Precision and Routine

Formosa Coffee is not built around volume. It is built around control. Every part of the process is handled with intent, from sourcing to roasting to service at the counter. That structure creates a predictable experience for customers, which is what brings people back.

Jason Chen, the owner, continues to roast in small batches at Buunni Roastery in New York City. This allows the shop to maintain freshness without overproducing. The sourcing stays just as tight, with beans coming from micro farms in Yun Lin where output remains limited each year. That combination keeps quality stable across every order.

Inside the store, the flow is steady. Regular customers often know what they want before they walk in. Orders move quickly, and the expectation is simple. No confusion, no delays, and no surprises.

For a setup like this, operations behind the scenes need to match that same level of clarity.

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Where Operations Started to Slow Down

Before switching, Formosa Coffee was using Orda for its ordering system while still relying on Square for point of sale and loyalty. On paper, the setup worked. Orders could be placed and processed. Customers could engage with the brand through an app.

The issue showed up during daily use.

Loyalty did not stay aligned between the two systems. Points and rewards were not always reflected correctly, which meant staff had to double-check information during transactions. What should have been automatic became manual.

Jason explained this in his conversation with Isabella from the Per Diem team that with the previous system, the loyalty wasn’t in sync with Square. They had to keep cross-checking between systems.

That extra step may seem small, but during busy hours it adds pressure. Staff have to pause, confirm details, and fix mismatches. It slows down service and creates uncertainty at the counter.

For a shop that runs on routine and repeat visits, that kind of friction stands out quickly.

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Why Loyalty Sync Matters in a High-Frequency Business

Coffee shops rely on habits. Many customers visit multiple times a week, often ordering the same drink. Loyalty programs support that behavior by rewarding repeat visits and building familiarity over time.

When loyalty works well, it feels invisible. Customers earn points without thinking about it. Rewards show up when expected. Staff do not need to explain or fix anything.

When it does not work, the experience breaks. Customers question whether their points are tracked correctly. Staff spend time resolving issues instead of focusing on service.

Recent industry data shows that around 75 percent of customers prefer brands that offer a loyalty program. That preference only translates into value if the system behind it is accurate and consistent.

For Formosa Coffee, loyalty was already part of the experience through Square. The gap came from how that system connected with their ordering platform.

Fixing that connection became the priority.

How Coffee Shops Can Build Starbucks-Level Loyalty Without Enterprise Tools? Read the blog. 

Moving to a Fully Synced System with Per Diem

The switch to Per Diem was driven by one goal. Bring ordering and loyalty into the same flow without gaps.

After the move, the difference was immediate. Loyalty started reflecting correctly across the system. What customers saw on their app matched what staff saw at the register. There was no need to verify points or adjust rewards manually.

Jason shared his experience after the switch.

“With Per Diem, loyalty is so good and perfectly in sync with Square. It runs better than what we had before.”

That change removed a layer of friction from daily operations. Staff could focus on preparing orders instead of checking systems. Customers could trust that their rewards were accurate.

The result was not a new feature or a major overhaul in how the shop runs. It was a smoother version of what was already there, aligned with how the business was meant to operate.

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How the App Fits Into Daily Ordering Behavior

Once loyalty and ordering started working in sync, the change showed up in how customers interacted with the shop. Ordering ahead became more reliable because everything, from payment to rewards, followed the same system. There was no second step or confusion about whether points would be added later.

Regular customers began using the app as part of their routine. Many already knew what they wanted, so ordering ahead saved time without changing their habits. They could place an order during a short break and pick it up without waiting. That flow works especially well in commuter-heavy areas where time is limited.

On the staff side, the shift reduced interruptions. Orders coming through the app were clear and complete, and loyalty did not need to be checked separately. During busy hours, that made a difference. Fewer pauses, fewer questions, and a smoother handoff between the screen and the counter.

Nothing about how customers order had to change. It just became easier to handle on both sides.

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Final Thoughts

For Formosa Coffee, the switch had an operational impact. Loyalty tracking no longer required manual checks, which helped maintain speed during busy periods.

Everything now runs through one system. Orders, payments, and rewards stay aligned, so there is less room for mistakes.

It simply works better for how the shop already runs.

If you're on Square, make ordering and rewards easier to manage. Book a demo to learn more.