Restaurant Social Media
Are discount coupons really driving traffic to restaurants?
Well, it's not making me dine out more frequently.
I did an informal exit poll today at the mall and the consensus was no. People are just being mindful of their cash because they don't feel real secure at their jobs. The general feeling was "anybody can get fired at any time and that's a scary, unsettling feeling".
So, the questions I pose to FohBoh members are:
Operators: If you are couponing and discounting your menu, how's that working for you?
Non-Operators: Are discount coupons making you dine out more frequently?
I did an informal exit poll today at the mall and the consensus was no. People are just being mindful of their cash because they don't feel real secure at their jobs. The general feeling was "anybody can get fired at any time and that's a scary, unsettling feeling".
So, the questions I pose to FohBoh members are:
Operators: If you are couponing and discounting your menu, how's that working for you?
Non-Operators: Are discount coupons making you dine out more frequently?
Tags: coupons, discounting, restaurant
Replies to This Discussion
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Permalink Reply by Anthony Presley on -
As a non-operator, the answer would be "no". We aren't dining out any more frequently (or less frequently) than this time last year (maybe I'm just odd).
However, I did get a chance to sit down with a regional manager of a FL based chain (about 70+ units) last week, and was shown some interesting numbers that their BOGO coupons were about the only thing keeping the life support "on". They were / are having a hard time getting people in the door, and BOGO coupons were "helping" them along.
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Permalink Reply by Jose L Riesco on -
Coupons often serve to keep the restaurants fresh in people's minds more than the savings that they bring.
If you have to decide where to go for dinner, and you happen to have a coupon from a restaurant, this could tilt the balance in its favor.
The nice thing about coupons, for restaurateurs, is that they can track them and see how efficient they are (unlike many other forms of advertising). If they bring customers, great, if not, drop them and use some other marketing vehicles.
Just my 2cents,
thanks for the posting,
Jose L Riesco
www.myrestaurantmarketing.com
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Permalink Reply by Ron Howald on -
Michael,
As I have mentioned in other marketing related postings, coupons unto themselves are not the end all be all for marketing a restaurant. Coupons help put fannies in the seats but will not be the savior or white knight.
Great customer service should be the main focus for the staff and coupons are a way for the staff to 1) show their stuff, 2) meet new or returning customers, 3) have those coupon customers return singing their praises for the great customer service. You only have one opportunity to make a first impression and coupons help you introduce yourself to the customer, the rest is on you and your staff.
I am a firm believer in coupons, but not as the only way of marketing. WOM is always the best.
Ron
ron@trnusa.com
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Permalink Reply by Naila Ismail on -
The web application I am in the process of developing will let the restaurants post their special deals on the website, and the users will only be able to use them by clicking on the deal and ordering from the menu or just reserving a table.
Because of this, the restaurants will be able to track the customer response to a particular deal, accurately.
They will also be able to send personal emails to their customers to thank them, hence combining increased sales with great customer service.
The restaurants will also be able to offer special deals or offers to a targeted group, based on demographics, profession, employer, special dates, like birthdays & anniversaries etc., hence making it even more personal.
I would love to hear what you guys think about this system.
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Permalink Reply by Sandra Banks on -
From a non-operator standpoint I will say that I don't necessarily dine out more often...but it helps me decide WHO to go to. If I want to go out to eat or not cook for the night I reach for the coupon book for inspiration as well as cost savings.
As an operator, we have promotions on certain days that we have low guest counts. Since we offer food, drinks, and games, we offer a promotion of 1/2 price Wednesdays where all games are 1/2 off. It has increased traffic on those days. For food, we have a rewards program, and we send out better deals (i.e. 2 for 1) than we have in the past.
It has helped, but overall I think everyone is hurting right now.
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Permalink Reply by David Curtis on -
From a personal standpoint, coupons do not make me any more likely to dine out or to choose one restaurant over another. However, at Ted's we have had some success with coupons. We did an internet based coupon last year, and did some newspaper coupons this year, but our most successful coupon has been partnering with Restaurant.com. We have been using their services for almost a year and getting a lot of good feedback as well as first time guests (about 50% of the certificates go to these folks).
Also we have been doing a bundled deal (Real Deal) that combines appetizer, entree, and dessert for one price (we have a lunch and a dinner offering). This has been a very successful promotion that has been a favorite with regulars. We are not giving away the house on this deal (you save about $5 - $7 depending on your choices), but I think you have to be seen doing something to match all the offers going around today by all of the big casual chains (our competitors).
There are many folks out there who are price conscious and coupon users who will take advantage of the offer and you do get some first time guests exposed to your concept that you can convert to regulars with Ron's points about great food and great service adding up to a great experience. Once you get them in the door, that is your opportunity to impress and maybe even upsell.
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Permalink Reply by Steve Paterson on -
Just in the past few weeks, I've received gift cards in the mail from Roys ($20), Flemings Prime Steakhouse ($50) and Bonefish Grill ($20)
Basically a coupon disguised as a gift card.
I was entertaining customers in town and we ate at all three. Funny thing is, I forgot the gift cards at home all three times!
BUT...they did immediately remind me of the brand and helped me decide where to eat. So I guess they work.
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Permalink Reply by Steve Paterson on
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...and these are concepts that never EVER discounted or couponed up until a few months ago. If I got the same coupon for the same place in the mail every month...I'd probably just toss it.
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Permalink Reply by Justin A Ragusa on -
My clients have been experiencing good ROI by using KongMobile 's SMS mobile Coupons system.
Its affordable - Average $65.00 / month
Its measurable - They tack every customer that opts-in and create a really great VIP customer list they can follow up with anytime. Mobile marketing in its very nature is designed to be trackable. Whether you just want to see how many people respond to a specific offer, or you need a more sophisticated conversion tracking, you can monitor in real time, the effectiveness of your marketing efforts.
Its flexible - They can change or edit their campaign on the fly..anytime easily!
It’s Personable – Most forms of mass communication are geared towards the mass market, meaning that the same message is applied across a wide section of potential consumers. Mobile marketing allows you to take an inverse approach, giving you the flexibility to customize your offer to a much smaller niche target market.
Please let me know if you know of a better way to interact with your customers...I am willing to bet that you can not think of too many better alternatives.
If you would like to know more please contact me...
KongCo Ventures
Next Generation Marketing
Mobile :: Wireless :: Web
Thanks,
Justin
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Permalink Reply by Mark Frank on -
In my mind the question of discounting misses the point. It is not good or bad the question is it a short term necessity? The problem with discounting is owners at times communicate they are doing the guest a favor when in fact the opposite is true. The owner and manager who choose to discount, offer value in the form of a reduction in ticket do so hoping the customer will return and pay full retail, which I agree, is a questionable stand alone strategy, unless operational execution is outstanding. The discount in and of itself is not strong enough to build business and must be done in combination with operational improvements of every kind and scope.
The problems are many; number one, everyone is doing it, number two, it may be a requirement because so many restaurants are short of cash and can know longer borrow. With rent and other expenses that never stop few options are available. With 50% of the value of American business functionally down the tube there are too many goods and services available and not everyone will survive. Discounting is at best an imperative short term strategy that in todays marketplace may only retain customers, which is better than the alternative of losing a transaction to someone else.
No one likes discounting but it may be a short-term imperative, it is far better too build business through operational execution, but time may not in favor at present.
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Permalink Reply by Howard Appell on -
I tried to park in a shopping plaza that has a Salad restaurant chain around 6PM one night last week. There wasn't a parking spot to be had and I commented to my friend that the restaurant must have issued a coupon. Indeed thay had. I guess it does drive traffic to their door. Coupons do work, especially now..
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Permalink Reply by Joseph Szala on -
We just launched a site that leverages discount coupons. People seem pretty receptive to them. I do think it depends on the marketplace. For instance, Manhattan isn't really known for folks who use coupons, but central Pennsylvania is. I have heard some good things from our clients.
Check out the site: www.blabberbug.com
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