As you can see, coupons are one of the essential parts of the restaurant industry, and it will help you bring new customers to your business as well as to encourage former customers to return. That will increase your sales and help you gain additional promotion
Even though it is useful, some owners may think that using coupons can put their business at risk to lose profits. You should stay with us because we will show you the advantages and disadvantages of implementing a successful coupon marketing campaign for your restaurant.
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Pros Of Using Coupons
We can list numerous reasons why restaurant owners should use coupons to boost their sales and raise awareness:
- Coupons will bring new customers and help old ones to return. You will also keep current customers interested so that they can bring back and promote your restaurant even further.
- Coupons are an excellent way to boost the interest on new menu items that you have.
- Customers will travel far distances to use coupons for your restaurant, which will increase the overall profit margin.
Cons Of Using Coupons
Even though we’ve mentioned that coupon marketing is a successful way to increase your brand awareness, it features some downsides too.
- Coupons will affect your profits because you will have to lower the price of your food. Restaurants have tight profit margins. It can be tough for a new restaurant to swallow this particular income reduction. To get the answer on question what is the average restaurant profit margin, click here.
- Some coupon websites will take a commission fee based on the profit you make. As a result, you will not be profitable in the long run, which is the main reason why discounts have an expiration date.
How To Run Successful Campaign?
Some food services will provide you with coupons, but not every restaurant will use them strategically and with bran. It is essential to plan your coupon marketing so that you can ensure that your business gets out of each coupon.
However, before you decide how you’ll distribute and advertise your coupons, you should determine which type of coupon you wish to offer, and how much you can reduce the price of food and still make some profit.
Understanding Different Types Of Coupons
You can find several types of coupons, ranging from flat-rate discounts to other types too. Most of them are an excellent choice for restaurant establishments, but you have to know their purpose, effectiveness, and timing.
- Flat-Rate Coupons – Flat-rate coupons will provide your customers a flat discount, such as ten or five dollars on the entire bill. This is an excellent solution for most restaurants, especially if you have an expensive menu. You will be able to protect your profit, by providing minimal spending that customer has to make before he/she can redeem the coupon. For instance, you can give 10 dollars off, but only if a customer spends more than 50 dollars.
- Percentage Discounts – This type of coupon will provide the percentage of discount based on the specific terms. Most of them are 10, 15 or 20 percent. They are perfect for restaurants that feature affordable prices, because customers will focus on percentage, and they will think that they will save lots of money, but they will save only a few dollars instead.
- Bonuses – Bonus is a discount or free item with the purchase of another item. For instance, you can create offers where customers will get free beer if they order some amount of chicken wings at a bar. By offering bonuses, you will be able to increase customer’s satisfaction and perfect for lively restaurant establishments. If you want to launch new menu items, you will be able to get something that customers’ will enjoy.
- Loyalty Cards – Even though the loyalty card is not a traditional discount, they are the perfect choice for people to give them a reason to revisit you. Visit this site: https://en.wikipedia.org/wiki/Loyalty_program to see how loyalty program changed over years. You can allow customers to collect stickers or stamps each time they visit you so that they can work up to a free menu item or a meal. This type is appealing because it requires the customer to visit your restaurant more than once to gain something in return.