Coupons can help increase restaurant revenue by bringing in new diners and encouraging former diners to visit you more. Some restaurateurs might be wary of coupons because it might cause them to lose profits. A good balance is needed to ensure a successful coupon campaign.
If you are considering launching a new coupon campaign or looking for ways to increase your sales, you came to the right place!
Here are the pros and cons of coupons.
Types of coupons
If you are planning a coupon campaign, you should be aware of the types of coupons you can offer. Here’s a list of them.
Flat-rate Coupons - Flat-rate coupons give diners a flat discount, such as five or ten dollars off of their total bill. This is a particularly good option for restaurants with pricier menus. You could also have a spending limit in order for the coupon to apply. For example, you can get off your bill only if you spend over 0.
Percentage-based Coupons - This involves discounting your food by a percentage. This is ideal for restaurants with affordable prices.
Bonuses - Bonuses mean offering discounts or freebies when purchasing another item. For example, Buy 1 get 1 free type deals or offering a free beer when buying a plate of chicken wings.
Loyalty Cards - This not a traditional type of coupon but this can be a very impactful way of sustaining loyal diners.
Distributing your coupons
Distributing coupons can be done in various ways, physical or digital.
Physical/ Print Distribution - This may not be very popular these days but if you want to do a small coupon campaign for your locale, this can be very effective. This can also reach more people provided that your audience is predominantly older people.
Social Media - This is a very productive and cost-effective way of distributing coupons. You know exactly who will be receiving the coupons too.
In addition, advertising on websites like Groupon, LivingSocial, and Yipit can expose your business to a larger audience but keep in mind, these websites will take a cut of your profits.
As you can see, managed correctly, coupons can be very advantageous in certain situations. Be sure to refer to this guide the next time you’re planning a Coupon Campaign.
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