Restaurants and eateries, along with many other businesses, are jumping on board of all the new websites available that advertise deals of all kinds of nature. While this is a great idea to advertise on these sites, owners and managers need to step back and think “what do we really want to achieve with this deal?’’
Maybe it’s an increase in customers. Maybe it’s to attract a different clientele. Maybe it’s to create awareness for the establishment. While these are all great reasons to offer a coupon, you need to actually think what kind of customers you will attract.
If you are a high end restaurant providing a fine-dining experience and you offer a two-for-one deal you need to think of the people that will respond to this coupon. Surely, you will get a repeat of customers that already enjoy the restaurant and also people that enjoy dining at similar-like restaurants but you will also receive the majority of bookings from people that would never consider dining at such an establishment or could even usually afford to.
These customers would take full advantage of your coupon as it gives them an opportunity to dine somewhere they would normally not consider forking out for.
So let’s take a look at the figures from a two-for-one point of view, you might get twice as many customers but you haven’t actually increased your weekly turnover, instead you have just served twice the amount of food and possibly increased your labour cost to handle the extra guests, not to mention doubling your food cost. Even if all of these customers walk away with positive thoughts and comments, the chance of them returning is very little as they can’t usually afford to dine at this type of establishment, therefore you have gained very little from the offer.
You are better off ‘value-adding’. This will attract customers that are already willing to dine at your establishment but also gives them a little extra to the usual bill. Offer them a complimentary bottle of wine, pre-dinner canapés or even a free dessert. This way you are attracting potential new clientele that are likely to return.
Also, by offering a bottle of wine, customers will believe that they have received a generous gift when it has really only cost the restaurant $5 - $10. They are still paying for their food and are more likely to come back if you 'blow them away' with service and quality of food because it will cost them no more next time, only their drinks.
There is also the other end of the market to explore where two-for-one deals prove to be successful. Places that are not trying to be different but just providing the ‘usual’ short-order cooking such as low-end cafes and fish & chip shops where it will be of low significance to their food and labour cost to offer such a deal.
This could actually provide a way of gaining extra clientele that are willing to return as it would create awareness for the establishment and also an alternative from surrounding businesses.
One of the most important things to consider about food coupons is to not come across too cheap. Make people think that they are really receiving an amazing deal, not just an excuse for an extra sale. You don't want a tacky looking coupon that just shouts desperation for customers.
Also, a coupon offering two-for-one deals might potentially turn off some clientele with them believing that the quality will not be up to scratch due to corners being cut to make up costs and they also may think that the place is not doing well, hence the need for cheap coupons.
So next time you consider advertising, have a think of what results you’re actually after as there may be a fine line between success and failure.
Matt Clark Consultant Chef, Freelance Food Writer and Culinary Madness