What Types of Restaurant Discounts & Promotions Work Best?

What types of discounts work best?

There's a large range of discounts you can make use of. You can give a monetary discount, like $10 off the total bill, or a percentage discount. You can offer discounts like two-for-one deals, or give customers something free if they purchase a particular dish. The idea of getting "something for nothing" is very attractive, so getting more for the same price is better than getting the same amount for a lower price. With monetary discounts, keep things relative: if a meal costs $30, a $10 discount is significant. If it costs $150, that $10 off is much less enticing.

How long should a discount last?

There are differing opinions on this, but remember that customers need to feel they have only a limited time to get the discount. For that reason, it's probably best to run the discount for no longer than a few weeks. Also, if you offer a long-lasting discount, your staff may no longer keep their focus on the offer, diminishing its effectiveness.

What reasons are there not to discount?

Although discounts can be a great marketing tool for restaurants, there's a risk of overusing them. If you do this, diners will start to expect the lower prices and may be less willing to visit your restaurant when prices are back to normal. You should also consider whether excessive discounting may impact on your business's reputation: you want to be known for great value, but not for just being cheap.

What about new customers?

Here's where discounting can really help: getting people through the door who may never have been your customers before. If they're on the fence about whether to visit you, a discount can nudge them into becoming your customers. Once they're in your restaurant that first time, you have opportunities to show them why they should return, allowing you the chance to make them regular customers.

And existing customers?

Discounts can also work very well for existing customers, especially if you use them to reward their loyalty. The form these discounts take can vary: you could give them a permanent loyalty discount or a one-off offer like a free dessert with their meal. This will make them feel valued - and happy customers usually spend more.

You don't need to offer massive discounts to make your customers appreciate what you're doing. The simple fact that you're making the effort can be enough to change their behavior and make them more likely to return, time after time.

Dave Lipson is the Owner of ReservationBooks.com. For more information on how you can run and improve your restaurant business visit us at http://www.facebook.com/reservationbook.