Two4One, Three4Two, Buy1Get1, 10% off and Free!
We are really feeling sorry for restaurants right now.
There are heaps of offers out there for diners and talking to some of clients as well as witnessing the growth of the ‘voucher culture’ has made for some interesting times for the restaurant industry. Last year there were reports in the hospitality industry concerning the sustainability of the ‘desperate’ offers restaurants were providing to get bums on seats. Over Christmas and New Year, the voucher frenzy continued and restaurants were fearful of how long they could sustain the demand for discounts, two for one’s and free drinks.
It therefore seems that there is very little light at the end of the tunnel as websites such as moneysavingexpert are still pushing through an abundance of great deals for diners with very few limitations on when the vouchers can be used.
There is clearly pressure amongst high street chains to remain competitive and to match some of the offers that are currently circulating. Some months ago we visited a well-known high street restaurant offering two for one and they were full. The four other high street brands were empty – they were not offering any discounts or vouchers that week at all. We receive at least four or five emails a day from restaurants enticing us with great deals on main courses and wine. What concerns us is how this is going to end. Will restaurants have to withdraw their offers in the near future in the hope that they have established a loyal following or will they have to continue to bribe customers through the door? Will they have to increase menu prices just so they can discount them again to make customers believe they are getting a great deal?
One thing is for sure – if restaurants are offering discounts and getting bums on seats – they need to offer a high level of excellent service and quality of food. Just because a meal is being provided at sometimes half the price, doesn’t mean the service and food should be slashed in half too. Incentives for customers need to be treated as a taster of what you provide under ‘normal’ circumstances, the idea is that the customer will try something or somewhere they would never have tried before and restaurants need to ensure they come back again and more importantly – spread the word.
We believe it’s important not to dilute your brand and offer a flood of discounts, but to think very carefully about your positioning strategy and how price discounts will affect how you are perceived and how you can operate with such a narrow profit margin (if at all).
If you feel that you can no longer sustain the heavy discounts – look for alternatives, get your message out to the masses, add value to your service and products and encourage people to come back. Find out what they liked, what they didn’t like and make their whole experience one they would like to repeat – even without a voucher.
We are exploring lots of new ways to help independent restaurants to achieve the booking levels they deserve and there are still lots of marketing tools out there that can provide an increase in bookings. It doesn’t always have to be a discount, just a good offer!
