From local restaurants to country-wide fast-food chains, the right approach to discounts can have a massive impact on the course of your restaurant’s growth. In this article, we’ll discuss 11 effective restaurant discount strategies.
1. Personalized Discounts
Personalized discounts can lead to higher customer retention and increased spending. A study by Epsilon found that 80% of consumers are more likely to make a purchase when brands offer personalized experiences.
And so, make sure to tailor your offer to individual preferences. That way you can make customers feel valued and understood, which in turn should lead to repeat business and an increase in loyalty.
Industry examples
- Chili’s uses personalized marketing to send offers based on customers’ dining habits. This approach has significantly increased their customer retention and spending.
- Starbucks sends personalized drink recommendations and discounts to members of its rewards program, boosting repeat business.
- Domino’s uses customer data to offer personalized deals via email, improving engagement and sales.
Use your restaurant analytics to track customer preferences. Offer them restaurant coupons tailored to their favorite menu items. A restaurant loyalty program can also help build and monetize customer loyalty.
2. Time-Limited Promotions
Creating urgency with calendar-based discounts is a proven way to attract customers to your restaurant. Offer discounts during slow periods, like off-peak hours or host happy hours. This way, you should be able to keep your restaurant busy throughout the day.
Time-limited promotions create a sense of urgency, prompting customers to act quickly. According to the Journal of Business Research, limited-time offers can increase a product’s perceived value and demand and encourage customers to spend more money.
Industry examples
- TGI Fridays runs happy hour specials to fill tables during slower times, driving up sales during off-peak hours.
- Olive Garden offers limited-time lunch deals to attract midday diners and boost lunchtime traffic.
- Buffalo Wild Wings hosts weekly wing promotions, such as “Wing Tuesdays,” to draw in customers during typically slower weekdays.
3. Bundle Deals
Combo deals are great for increasing the average order value. Bundle deals can significantly increase the average ticket size. A study by the National Restaurant Association found that consumers are more likely to purchase a meal bundle.
Industry examples
- McDonald’s offers meal bundles like the “Extra Value Meals,” which attract customers looking for value deals.
- Subway has sandwich and drink combos that provide savings compared to buying items separately, encouraging larger purchases.
- Pizza Hut offers family meal deals, which bundle multiple pizzas and sides at a discounted rate, increasing the average ticket size.
4. Referral Discounts
Get your current customers to bring in new customers. Offer a free item or percentage-based comps when they refer friends.
According to Nielsen, 92% of consumers trust recommendations from friends and family over other forms of advertising. In essence, word-of-mouth marketing can help you attract new customers at a lower acquisition cost.
Industry examples
- UberEats offers referral discounts, encouraging existing users to bring in new customers, boosting their market reach.
- Grubhub provides both the referrer and the referee with discounts on their next order, driving new sign-ups and repeat business.
- Seamless uses referral incentives to grow its customer base, offering credits for future orders to users who successfully refer friends.
5. Seasonal and Holiday Discounts
Seasonal and holiday discounts can help you capitalize on heightened consumer spending during these periods. Offer calendar-based discounts and consider organizing local events, especially during major holidays like Christmas. Follow the link for 25 restaurant event ideas.
Industry examples
- Starbucks runs seasonal promotions for holidays like Christmas and Halloween, attracting customers with festive menu items and discounts.
- Dunkin’ offers special deals and limited-time menu items during major holidays, increasing customer visits and sales.
- Applebee’s creates themed menus and offers discounts during events like the Super Bowl and Valentine’s Day, drawing in crowds looking for a festive atmosphere.
6. Membership and Subscription Discounts
Create a membership or subscription program. Offer exclusive deals and discounts to members, such as AARP restaurant discounts. This fosters long-term loyalty and repeat business.
Consider learning about the best restaurant loyalty programs in the world and making one that rewards members with discounts and special offers.
Industry examples
- Panera Bread‘s subscription service offers unlimited coffee for a monthly fee, driving frequent visits.
- BJ’s Restaurant and Brewhouse has a loyalty program that gives members exclusive offers and discounts on their favorite dishes.
- Taco Bell‘s Taco Lover’s Pass provides subscribers with a taco a day for a month, incentivizing regular visits.
7. Social Media and Influencer Collaborations
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Run a marketing campaign on social media. Partner with influencers to promote your restaurant discount and reach a broader audience.
Social media and influencer marketing can significantly extend your reach. According to Forbes, businesses earn an average of $6.50 for every $1 spent on influencer marketing, which presents an incredible ROI.
Before you decide to go with restaurant influencer marketing, make sure you understand its dynamics and know how to choose the right person for the job.
Industry examples
- Wendy’s uses social media campaigns and influencer partnerships to engage with customers and promote special deals.
- Chipotle collaborates with TikTok influencers to create viral challenges that include discount codes, driving massive engagement.
- Popeyes leveraged a viral social media campaign for its chicken sandwich, which included discounts and drew huge crowds.
8. App-Based Discounts
Offer app-exclusive discounts. This not only engages tech-savvy customers but also encourages them to download your app and make repeat visits.
In fact, offering discounts is just the tip of the iceberg when it comes to owning your own restaurant mobile app. A branded mobile app opens the door to starting loyalty programs, promoting special events, and keeping customers coming.
Industry examples
- Domino’s uses their app to offer exclusive discounts and track orders, boosting customer engagement and loyalty.
- Starbucks rewards app users with points for every purchase, which can be redeemed for discounts and free items.
- Chick-fil-A offers app-exclusive deals and early access to new menu items, encouraging downloads and repeat visits.
9. Feedback and Review Incentives
Encourage customers to leave reviews on restaurant review sites by offering a small discount or free food item. This strategy improves your online reputation and provides valuable feedback.
Customer reviews can significantly impact your restaurant’s reputation. According to BrightLocal, 98% of consumers read online reviews at least occasionally. Offering incentives for reviews can enhance your online presence and provide insights for improvement.
Make sure to track all restaurant reviews using restaurant analytics.
Industry examples
- Shake Shack offers incentives for customer feedback, which helps them improve their service and menu.
- Buffalo Wild Wings provides discounts to customers who complete post-visit surveys, gaining insights into their dining experience.
- Red Robin rewards customers with a free appetizer for leaving a review, enhancing their online presence and customer satisfaction.
10. Group and Event Discounts
Organize special events like stand-up comedy, music, or trivia nights. It’s not something many restaurants have the cojones to do, but if you can keep up a series of successful events, you can start building a solid base of some of the most loyal customers you could ever get.
Offer discounts to eventgoers to encourage regular presence. Here are some restaurant event ideas to get you started.
Also, consider offering similar discounts to groups and families. This way, not only will you sell more food, but you’ll also cultivate relationships and organic footfall.
Industry examples
- Applebee’s offers discounts for large groups and event bookings, driving higher sales and customer loyalty.
- Dave & Buster’s provides special packages for corporate events and birthday parties, attracting group bookings.
- The Cheesecake Factory has group dining options with set menus at discounted rates, appealing to large parties.
11. Supporting Local Charities
Partner with local charities and offer a percentage of sales on certain days to support them. This not only helps your community but also enhances your restaurant’s image.
Supporting local charities can massively improve your brand image and attract more customers. According to Cone Communications, 87% of consumers will purchase a product simply because a company advocated for an issue they care about. Partnering with charities shows your commitment to the community and can drive customer loyalty off the charts.
Industry examples
- Subway supports local charities by donating a portion of their sales during specific campaigns, which attracts community-focused customers.
- Chick-fil-A frequently partners with local schools and organizations, hosting fundraising events and donating proceeds.
- MOD Pizza dedicates a portion of sales to local charities through their “Spreading MODness” campaign, boosting community engagement.
Key Takeaways
- Personalized Discounts: Tailor offers to individual preferences to boost retention and spending. Use customer data to send personalized promotions like Chili’s and Starbucks.
- Time-Limited Promotions: Create urgency with discounts during off-peak hours or specific periods. This strategy can drive sales during slower times, as seen with TGI Fridays and Olive Garden.
- Bundle Deals: Increase average order value by offering meal bundles. Examples include McDonald’s “Extra Value Meals” and Pizza Hut’s family deals.
- Referral Discounts: Encourage customers to refer friends by offering them discounts. This approach leverages word-of-mouth marketing, effectively used by UberEats and Grubhub.
- Seasonal and Holiday Discounts: Capitalize on holiday spending with themed promotions. Starbucks and Applebee’s successfully attract customers with festive deals.
- Membership and Subscription Discounts: Create loyalty programs offering exclusive deals. Programs like Panera Bread’s coffee subscription and Taco Bell’s Taco Lover’s Pass drive frequent visits and long-term loyalty.
Frequently Asked Questions (FAQ)
How to give a discount to a customer in a restaurant?
First, decide on the type of discount you want to offer, such as a percentage off, a fixed amount off, or combo deals. Next, clearly communicate the discount to your staff so they can apply it correctly.
When offering restaurant discounts, make sure to inform customers about any conditions, such as minimum purchase requirements. For inspiration, look at how local restaurants or programs like AARP discounts offer discounts to their patrons. Finally, consider printing the discount on the bill or providing a coupon for future visits.
How do you write a good discount offer?
To write a good discount offer, start with a clear and catchy headline that grabs attention, like “Exclusive Restaurant Discounts Just for You!” Clearly state the discount type, such as a percentage off or a first-party discount.
Mention how the discount can benefit the customer, such as “Enjoy 20% off your meal to boost sales and save on your favorite dishes.” Provide a sense of urgency by including a time limit, like “Offer valid this weekend only.” Finally, explain how the discount can help increase sales by encouraging customers to dine more often.
How can a restaurant get more customers?
To get more customers, a restaurant can implement strategies to balance profit margins and attract patrons. Using a POS system integrated with an online ordering system can help you understand sales data to identify popular items and optimize pricing, ensuring that even full price items are appealing.
Offering promotions or loyalty programs that provide a discount after spending a certain amount can also encourage repeat visits. These tactics help increase customer numbers while maintaining healthy profit margins.
