You’ve probably heard about the endless Restaurant Coupons dilemma…
So many people agree that they are NOT the way you want to attract customers. Yet the big players are using them frequently.
Where is the catch?
In most cases, coupons for your business are not the best decision you can make.
Some restaurant coupons discounts highly undervalue your product and customers don’t know what is the exact value of your product.
Most of the customers will think of your restaurant that it has a good value, but only “with a coupon”. If you are using coupons constantly, customers will wait for next coupons so they can come to your restaurant again.
Moreover, there is a high chance they will not come if there is no coupon offered by your restaurant.
Depending on your restaurant type, it is good to offer coupons for attracting potential customers so they can experience your place in action.
Restaurant Coupons Examples From The Big Players
As far as restaurant chains that use coupons, they know a lot of things that the average independent operator doesn’t.
They keep track of their sales showing how much of their sales are in the form of coupons. They always track their discounts and they price their coupon marketing strategy into their menu.
For example, if a pizza costs them $4.00 to produce, and they need to make an 8$ gross profit for every pizza they sell, they already know they have to make the regular price around $13 or 14$ so they can send you a coupon.
By sending that coupon you’re thinking that it’s a good deal because you’re paying only $10.
Larger restaurant chains will always have an advantage in using coupons to attract customers because they plan ahead and have experts that take care of their coupon marketing strategies.
You may ask yourself, how many people really pay $18.00 for a large pizza at Dominos?
A lot of people patiently wait until they have coupons. Domino’s makes a lot of money, but they know they’re not earning customers that will pay full price for their meals.
The most important thing is that they know how much money is one coupon costing them, so by calculating that they know how to adjust their prices.
By using coupons they’re also building value into their product so a lot of people will use the same coupon again because they will feel like they’re benefiting from it.
When To Use Coupons?
Restaurant coupons can be used responsibly and they will still keep the business running.
If your marketing and pricing strategy is developed in a way that you’re using coupons to attract customers, go for it!
If you are not perceived as half price restaurant, coupons should only be used to promote items where you still make good money after the discount is used.
But even in those cases, is it important to never offer a flat percentage discount. Best situations where you can use the coupons is to promote package values or to give freebies that are “extras” that won’t detract from the gross profit you’ll make by selling the rest of the meal at full price.
In conclusion, using coupons to attract people to your restaurant might not be the best marketing strategy you can use.
Alternatively, if your business develops into a restaurant chain you might reconsider using your restaurant coupons to grow it even bigger.